Abstract:

Digitalization and digitization are inevitable in today's economy. This also has an impact on the service segment in Germany, which has grown by almost 9% in recent years and so is the service sector Germany's largest sector at around 69.5% (Federal Statistical Office, 2022). The crafts segment is known as the backbone of the German economy and employs 13% of the nationwide workforce and 28% of nationwide trainees (ZDH, 2021). This is how we define the German Handicraft according to the Gabler Wirtschaftslexikon with "Craft is a profession and a form of organization in the commercial economy. The craft activity, which is to be distinguished from industrial mass production, is an independent gainful activity in the field of working and processing materials as well as in the repair and service sector (Gabler Wirtschaftslexikon, 2021)."  However, it is significant that this segment as well as small companies have a lower level of digitization than large-scale industries or the trade sector. They suffer from high barriers that cause a lack of digital innovation. In the long term, this means that the skilled trades as well as small companies are heading for market exit if no appropriate solutions are found (Gassmann & Sutter, 2019). This requires non-physical resources, as can be shown by the disruptive example of Uber, which has shaken up the entire cab industry with a digital platform. But also tailored solutions on regional markets and regular customers or simplifications of internal processes, for example by means of sensor technology, IoT (Internet of Things) or AR (Augmented Reality) show the enormous range of digital technologies.