From our colleague Ulrike Olma, author of numerous publications on the topic “Mittelstand 4.0 – Digital Business Models are Changing the Market”, an article entitled “Digitalization Requires Examination of SME Business Models” has been published in NWB.
Here we provide you with a small excerpt:
Many medium-sized companies have taken their first steps in digital transformation. For example, they have set up a homepage and equipped their sales staff with modern PC technology to enable mobile access to customer data and products. In the meantime, however, the effects of digital transformation go far beyond mere automation and increased use of the World Wide Web. Buzzwords such as “Blockchain” or “Industrial Data Space” are circulating in the business world.
Given the wide range of offerings, companies find it difficult to assess which next step they should take in further developing their business model. Well-filled order books, low interest rates, a shortage of skilled workers, and unchanged trends in customer requirements are further current key factors that must be considered when evaluating the business model. These changes influence future success and therefore affect profit forecasts. How you as a tax advisor can integrate this issue into your business consulting is demonstrated using a case study…
Checklist: Starting Points from Digitalization
- Use both the digital financial report and your discussion of the annual financial statements and interim qualified BWAs to address your clients’ further considerations regarding digitalization.
- Take these opportunities to clarify with your clients which components of the business model should remain constant and which should be realigned. Ask your clients about their plans for the further development of products and services as well as innovations.
- From this, interesting approaches arise for providing advisory support on different scenarios of your clients’ medium-term planning.
- Based on medium-term corporate planning, you can, if necessary, offer your clients the preparation of interim qualified BWAs required for controlling.
- These measures also improve your clients’ ratings and should be addressed in rating discussions with their banks. This provides a solid foundation to support your clients in talks with their banks, especially as investments are increasingly being made in intangible assets…
The original article in “NWB Betriebswirtschaftliche Beratung” (Issue 5/2019, pp. 143–147) can be purchased for a fee at datenbank.nwb.de/start/showdoi/ or you can test the journal including the database free of charge for 4 weeks at www.nwb.de/go/nwb-bb.
