The Internet coverage of SMEs is high, but at the same time there is a serious development opportunity in integrating IT applications into business processes, thus summarizing the recent research results of the Faculty of Economics and Social Sciences of BME (BME GTK)
BME’s conclusions are in line with the data of the European Union’s regularly cited Digital Economy and Society Index (DESI) measure for Hungary, where network access, Internet access and other technological data Hungary performs above. On a positive note, although there is a significant gap between the digitalisation of companies with more than 250 employees and micro-enterprises with less than 5 employees, digital capabilities and Internet use are nevertheless widespread and evenly distributed. This is largely due to the mandatory applications that companies have to use for tax returns, banking transactions or other administrative contacts
In contrast, there seems to be considerable potential for improvement in the integration of IT applications into specific business processes. The already mentioned DESI measurement and the 2,500-element company sample examined in the BME research also confirmed that the use of information systems, databases, state-of-the-art data analysis or cloud services is still low in some industries. In terms of digital readiness, Hungarian companies can be divided into low, medium and high readiness groups. Digitization is high in the financial and infocommunications sector, while mining and construction, for example, can be classified as low-digitization industries. There are also regional effects – where there are pull industries and a more developed business environment, digital readiness is much higher (for example in the automotive regions or the developed Central Hungary region).
Important for the competitiveness of the national economy. In the field of digital transformation, several faculties of BME carry out basic research, lead innovation projects and the topic is also included in the subjects. András Nemeslaki, professor and head of the Department of Management and Entrepreneurship at BME GTK, said of the research: For this reason, in cooperation with the National Bank (MNB), it has developed a comprehensive research program over the past two years, including the digital maturity of Hungarian SMEs, the changes in profitability achieved through the introduction of ICT tools, and their regional, industry and company size. ” He added that knowing the results, the aim is to develop university management courses – especially the BME Master of Business Administration program, which is celebrating its thirtieth anniversary next academic year – so that students learn about the latest combinations of economic and technical knowledge and empirical data. breakout points should also be mastered.
The first phase of the research took place in 2020, during a period of coronavirus outbreak in a representative sample of 2,500 SMEs. During the data collection and analysis, e-NET Internetkutató és Tanácsadó Kft. Was a partner of BME. In addition to the profitability, geographical and company size data already mentioned, the researchers collected information on digital skills (internet use, data protection, ICT skills), digitalisation of basic processes (administrative relations, online payment solutions, invoicing, etc.) and special about infocommunication applications related to business processes (corporate information systems, HR applications, use of company databases, e-commerce solutions, etc.). They also asked about factors that stimulate transformation, e.g.
According to research, only three of the more than a hundred indicators of digital maturity actually have a significant positive impact on profitability: employment of full-time ICT workers. All three relate to the digital competencies and supply of the workforce. With an average of 50 percent of firms with low digitization in terms of these competencies, there is also a high proportion of firms with the lowest degree of digitization in the workforce among firms with the highest productivity and profitability. The relationship between digital maturity and profitability varies greatly depending on the company’s industry classification, geographic location, and size. In some company types, the above relationship may have the opposite sign as in other types. Exploring these cross-cutting effects is important to identify in which sectors further digitization of the economy can mobilize competitiveness reserves.
In-depth analytical cases complementing large-scale research with case studies and interviews show that there are differences in the returns expected from digital transformation and the level of resources invested. Interestingly, for example, the stereotype that the older generation resists digitization, although research shows that the difference between the functional perspectives of the firm (e.g., the target system of sales, accounting, or production) or the managerial hierarchy is much more dominant. differences (eg a foreman’s problem is different from that of a CEO, whatever the age difference between them)
Multidisciplinary analysis of data is currently taking place with the participation of BME GTK and MNB experts and lessons can be learned from the results is expected to be released in the second half of 2021. In the fall semester, the detailed context of these studies will also enrich the MBA program with additional exciting and novel content elements to help prepare students to lead corporate digital transformation projects.
Hardware, software, tests, curiosities, and color news from the world of IT by clicking here
