Fraunhofer Study Reveals German Companies' Challenges and Opportunities in Transformation

A recent study by the Fraunhofer Institute for Industrial Engineering (IAO) evaluated the transformation capabilities of 500 German companies using the Fraunhofer Transformation Index. The research highlights that 40% of these firms lack a clear transformation goal, while only 30% have comprehensively integrated artificial intelligence (AI) into their operations.

The study notes disparities between company sizes: larger enterprises often maintain structured innovation processes but grapple with complex IT infrastructures, whereas smaller firms tend to have simpler IT systems but weaker connectivity. While many companies are data-driven and invest heavily in employee training, the overall readiness for transformation remains uneven.

Key recommendations from the study include establishing a clear vision for transformation, enhancing management diversity, expanding structured innovation processes, strategically deploying AI tools, and fostering networking among smaller businesses. Dr. Moritz Maier, the project leader at Fraunhofer IAO, underscored the importance of courage and clarity in driving successful transformation.

The findings underscore the pressing need for German companies to adapt amid technological advances, global competition, geopolitical shifts, and societal changes. The full study is accessible freely on the Fraunhofer website. This research provides valuable insights into how German enterprises can strengthen their innovation and transformation capabilities to remain competitive in a rapidly evolving market environment.