Christoph Krause, head of the Koblenz Competence Center for Digital Crafts, supports skilled trades businesses with their digitalization efforts. His experience: The right steps for successful implementation can be quickly developed on-site. (Photo: © Manolito Röhr)
Read aloud:
1 November 2020
Industry 4.0: Those who don't embrace digitalization now risk falling behind. Christoph Krause discusses the challenges and opportunities of digitalization in this interview.
Digitalization has a massive impact on the future of skilled trades. Christoph Krause, head of the Koblenz Competence Center for Digital Skilled Trades , sees many challenges for businesses – but also entirely new opportunities.
For ten years, Christoph Krause has been advising craft businesses on the introduction and implementation of digital solutions . The graduate designer, fast-talking communicator, and digital strategist shows companies how to successfully achieve digital transformation – from planning and production to customer communication. For this mission, the head of the Koblenz Competence Center for Digital Craftsmanship is supported by qualified partners from academia and industry.
DHB: Mr. Krause, the coronavirus pandemic has led to a noticeable digitalization push in many industries. What has happened in the skilled trades sector in recent months?
Krause: The pandemic has significantly accelerated the digital transformation in the skilled trades. In particular, the rapid implementation of digital business models and digital communication solutions was in incredible demand. This highlighted who had already done their homework and who was still at the beginning. The coronavirus pandemic has uncovered some existing gaps and quickly eliminated them. Now it's time to consolidate this process sustainably and leverage the momentum for the future of the skilled trades.
DHB: What advice do you give businesses to prepare for local lockdowns or a possible second wave?
Krause: The most important thing is that the necessary value-added processes can continue. To do this, I need to know them and record them digitally so that employees or external resources can access them. If key employees or even management are unavailable, everyone needs to know what to do, with what, when, and how. Where is the password for the cash register system again? How do I reorder components? Who approves the order? Questions upon questions that only arise in an emergency. The second point is to organize digital communication for the entire team, regardless of location. Chat-like tools play a key role here, for example Teams, Craftnote, or Memomeister. There are many good solutions for the trades. It just needs to be clarified beforehand how they can be optimally applied to the trades processes. Hasty implementation harms the communication process and creates chaos.
Operations management
Craft policy
Operations management
DHB: What should tradespeople keep in mind if their sales may be affected by restrictions?
Krause: These businesses must immediately establish a digital sales channel. This won't happen overnight. The skilled trades sector was truly creative during the coronavirus pandemic when the going got tough: From delivery services with ordering options via WhatsApp and the implementation of shops on social media channels to entire platforms, many good solutions were implemented in just a few days. Building and maintaining a genuine digital community, that is, real people and fans who support you through digital channels in difficult times, has also proven highly recommended. During the coronavirus pandemic, we have seen incredible recognition of regional value creation in the skilled trades sector.
DHB: Has your work at the Competence Center for Digital Crafts also changed during the coronavirus pandemic?
Krause: We've been working completely remotely for over six years, meaning we can operate completely independently of location. This is, of course, a huge advantage in times of pandemic. Whether at home or on-site with the tradesman: our technical equipment, digital tools, and IT security systems allow us to securely access all the necessary data from any location. We were also able to offer our transfer formats directly online, whether webinars, online workshops, or digital 1:1 coaching. These offerings were in very high demand. Many digital educational offerings will remain online even after the pandemic. It has been shown that some formats work better digitally. Others, however, we need to bring back into the analog world.
Increasing company value through digitalization.Those who do not invest in their digital processes are simply reducing the company’s value.
Christopher Krause, Head of the Koblenz Competence Center for Digital Crafts
DHB: Where do you see the skilled trades today in terms of digitalization?
Krause: There is no longer a non-digital trade today. The digital interfaces to the value chain are too advanced for that. Likewise, today's customers of the trades, especially due to the coronavirus pandemic, are demanding digital processes. Today, 80 percent of the challenges in the trades are about organizing the multitude of digital tools used into a continuous chain. Many companies are frustrated by the complexity and missing interfaces. A lot of time is often lost here that could be saved by simply automating processes. We currently receive the most inquiries regarding process digitalization. Once this topic is under control, other questions quickly arise. There are already trades businesses that are venturing into implementing digital services for their customers. Craftspeople who work closely with industrial products are already under pressure in this regard. New platform-based business models are coming onto the market almost weekly. Over 100 platforms are already active in trades processes. This is a development of which we are only just beginning.
DHB: In which areas do you see an urgent need for action?
Krause: The skilled trades sector must make much greater use of its nationwide network: New cooperatives are needed to secure access to data. Without the analysis and utilization of machine and product data, the skilled trades sector is excluded from digital services. Added to this are the challenges posed by the unequal distribution of skilled and junior staff between industry and skilled trades. Here, we must all invest together in digital communication, streamlined processes, and, last but not least, robotics.
DHB: In a recent study commissioned by the digital association Bitkom and the German Confederation of Skilled Crafts, 36 percent of all skilled crafts businesses reported that they are having problems managing digitalization. 13 percent even view digitalization as a risk. In your experience, how can barriers to digitalization be overcome?
Krause: To allay fears and, using concrete examples from the 130 trades in the skilled trades, demonstrate what a solution could actually look like. In recent years, digital innovators in the skilled trades have tried out and implemented very differentiated solutions. Today, we have a great deal more knowledge about what works in which trade and what doesn't. The skilled trades are one of the most certain sectors when it comes to the replacement of value creation by digitalization. In many processes, manual labor is essential. This is an incredibly good starting point for setting up the surrounding processes digitally in such a way that skilled trades can continue to be profitable. Our experience shows that direct support in companies is important. The right steps can be quickly developed on site and supported in their implementation.
DHB: Do craft businesses need a new business model in the future?
Krause: The skilled trades sector, in particular, offers an incredible number of opportunities for digital business models and services. The devices and products of the skilled trades are becoming increasingly intelligent. A heating system is calling a technician, a roof is calling a roofer. Over 180 smart home systems are waiting for their customers. This is where skilled trades can establish themselves as experts and curators. For customers, too, the product worlds are becoming increasingly complex and, above all, more interconnected. The skilled trades should clearly position themselves as the first point of contact digitally.
DHB: What will happen to craft businesses that do not have a digitalization strategy?
Krause: They will consume so much time and resources due to the multitude of digital interfaces and tools that they will no longer be able to run their core business profitably. This is a gradual process. Those who do not establish, test, and support digital customer contact with IT will only be able to handle less lucrative orders. A digital displacement process will set in. This is a question of positioning: Where do I want to be? Some small businesses will certainly commit, or be forced to commit, to platforms in this process. Those who fail to invest in their digital processes are simply reducing the company's value. Banks already look more at a company's digital strategy than at traditional valuation factors.
DHB: How do companies need to train their employees to keep pace with digitalization?
Krause: From "Fridays for Future" to "Fridays of Learning," one could describe the future challenge. We need fixed learning times in which employees can familiarize themselves with specific topics. Only those who have a perfect command of their digital tools will be able to offer customized and creative solutions for their customers. Digital education platforms can play a valuable role here. The "Digital Now" program is currently promoting the qualification of employees in skilled trades and small and medium-sized businesses. Our education systems are currently being expanded through new technological possibilities: Through "augmented reality," the virtual display of important information in work situations, the necessary knowledge can now be brought to the place of implementation. This represents a great opportunity for the skilled trades if they establish this form of knowledge transfer themselves.
DHB: Where do you see the skilled trades in ten years?
Krause: The takeaway from our many workshops with tradespeople makes the following changes likely: The unequal distribution of skilled workers in the economy will hit the skilled trades hard. In addition, there are over 200.000 businesses waiting to be taken over. The number of young people willing to take on entrepreneurial responsibility is declining. This shortage of good skilled tradespeople and entrepreneurs will bring partners and solutions to the forefront, using radical strategies to ensure that upcoming orders can be processed. Added to this is the modularization of processes, products, and services. Things are becoming more complex – and thus digital assistants, including those with artificial intelligence, must support the skilled trades. The entire product, including service, will become the focus of customers. I'm no longer buying a heating system, but heat. Not a car, but mobility. The skilled trades must adapt to this. The networking of trades and businesses is becoming increasingly important. Operating a platform for smart devices as a single skilled tradesperson is difficult, simply because of the investment involved. But together, it becomes an opportunity.
DHB: How can digital transformation in the skilled trades sector be best achieved in the future?
Krause: We need to completely rethink the tradition of guilds, chambers, and associations. We need digital enablers who support the skilled trades and their entire value chain. Our Digital Skilled Trades Competence Center, with over 60 partners from chambers, associations, business, and academia, is certainly a good building block for the digital future of the skilled trades. So roll up your sleeves and get going!
COMPETENCE CENTER FOR DIGITAL CRAFTSThe Digital Skilled Crafts Competence Center supports skilled crafts businesses nationwide in the introduction of digital technologies. Its goal is to unlock new technical and economic potential through digitalization. The competence center is part of the "SME 4.0 – Digital Production and Work Processes" funding initiative. The Federal Ministry for Economic Affairs and Energy (BMWi) supports the initiative as part of the priority program "SME Digital – Strategies for the Digital Transformation of Business Processes."
More information on handwerkdigital.deThe interview was conducted by Thomas Busch
Newsletter
Write a comment