"A digital short-cut" -How the German Mittelstand can counter the current multi-crises situation

A cataclysmic change how we do business is underway, as the Economist on October 6th portrayed in its article "A new macroeconomic era is emerging" (https://www.economist.com/leaders/2022/10/06/a-new-macroeconomic-era-is-emerging-what-will-it-look-like). How governments and financial institutions will react will imply a new understanding of how we evaluate risks, interest rates and economic outlook overall. A new inflation target of the central banks of around 4% is likely - and a new way of economic thinking is only now developing.?

Even if you are only partly familiar with German economics, you probably know about the "Mittelstand" - the backbone of the country's industrial sector. Known for being innovative and capable, the sector of mid-sized companies is an important driver of economic growth in Germany, with some even positioning themselves as world-leaders in their respective fields. However, the current multi-crises situation is having a severe impact on the Mittelstand. Often long established, time consuming processes that have grown over decades and might have been sufficient for a stable world are no longer effective. In order to counter the crises, these companies may take action in terms of: Act now, plan better, and become quicker and more relevant in managing strategy. A digital shortcut can help the Mittelstand to make it happen.?

The first and most important thing is to act now. The current environment of political, economic and socio-cultural shifts is unprecedented and requires immediate action. Many businesses are struggling just to keep their operations running -this is not the time for complacency. The businesses that will survive and thrive in the coming years will be those that are proactive and adaptable - for example by investing in emerging technologies and promoting a culture of innovation and risk-taking, like Gartner, Inc. showed in their report "Winning in the Turns" (https://www.gartner.com/smarterwithgartner/the-gartner-2020-cio-agenda-winning-in-the-turns). Many have shown this fast-paced talent already in pandemic-times. ?

The second need is the ability to plan better. The current crisis has exposed many weaknesses in traditional business models. In order to succeed in the future, businesses need to revisit their plans and make sure they are prepared for all eventualities. They need to be more agile and flexible in their approach. The Harvard Business Review, celebrating its 100th anniversary, reflected how management has changed - and will change in the next century to come. The "benefits of decentralization" and multi-polar ecosystems need to be utilized by a capable and adaptive organization. (https://hbr.org/2022/09/what-will-management-look-like-in-the-next-100-years)?

The third thing the Mittelstand needs to do is become quicker and more relevant in managing strategy. Businesses are forced to be able to rapidly adapt their strategies to changing conditions. This requires a shift in thinking from long-term planning to real-time decision making. The ability to quickly develop and implement new strategies while keeping the right focus on the core business will be critical for success in the years ahead. The Professors Tushman & O′Reilly called it “Ambidexterity” –and lately showed how relevant it is in fast-changing environments (ibid “Lead & Disrupt” 2021).

A digital shortcut can help the Mittelstand achieve these often-conflicting goals. Enabling the digitization of the underlying processes and transparent data driven decision making are cornerstones of the shortcut - like the Enterprise Strategy Suite (ESS) by Evolutionizer. The ESS is a cloud-based software platform that helps businesses quickly develop, implement and manage strategy. Evolutionizer's clients appreciate the agility, speed, and simplicity of the platform - features that help practically every company of the German Mittelstand facing unprecedented challenges in the current multi-crises situation. ?

To sum it up: The German Mittelstand is facing unprecedented challenges in the current multi-crises situation. In order to survive and thrive, businesses need to act now, plan better, and become quicker and more relevant in managing strategy. A digital shortcut will help businesses achieve these goals. Evolutionizer is a software platform that helps businesses quickly develop and implement new strategies—let′s talk.?