PwC study TRAX: Every second company fails to implement it
German management leaders know exactly how high the pressure for adaptation is due to digitalization, geopolitical tensions, and the shortage of skilled workers. The real problem lies in doing it: According to the new „Transformation index Germany“(TRAX) by PwC, every second company in this country suffers from a serious implementation deficit. Success is no longer determined by the strategy on paper; it is now determined by how quickly new technologies and methods actually arrive in the day-to-day operations of the company.
The key results at a glance:
- Speed as a nuisance: The deficit is not caused by a lack of insight, but by processes that are too slow. Plans are simply too slow to translate into new skills and viable business models.
- Organization suggests tool: Access to key technologies such as generative AI is of little use as long as the internal structures remain rigid. Without agile teams, investments will be ineffective.
- Focus on resilience: Frontrunners specifically secure their ability to act. They invest primarily in cybersecurity (59%), reliable quality assurance (39%), and energy efficiency and climate protection (36%).
- Unused networks: Around a third of companies forgo tangible competitive advantages and completely abandon fixed partnerships with start-ups or research institutions.
- Current benchmark: With the semi-annual index, PwC now provides a continuous overview of the future viability of the German economy.
High insight, hesitant practice
The fundamental shift in markets, supply chains, and operating environments is long since a consensus among top management. Nevertheless, many companies find it difficult to draw the necessary operational consequences. The PwC study paints a sobering picture: Around half of companies fail to promptly translate their analyses into actionable steps. The biggest obstacle lies not so much in recognizing trends as in internal inertia – entrenched silos and inflexible processes hinder necessary adjustments.
Why structures are more important than software
This discrepancy is particularly evident in future technologies. Almost every management team emphasizes the importance of artificial intelligence, but in the day-to-day work of its employees, this often means little. As Marc Billeb, spokesperson for the management of PwC Germany, emphasizes, even the most advanced AI does not provide added value if the organizational prerequisites are lacking in the company. Those who successfully master change not only purchase licenses, but also establish data-based decision-making processes, promote an open innovation culture, and equip the company to withstand unpredictable crises.
Cooperations: Many companies are offering opportunities
A proven lever to accelerate transformations are strategic alliances. Collaborating with agile startups or scientific institutions has been proven to help established companies remain adaptable. Yet around a third of respondents have so far refrained from systematically building such partner ecosystems. While experienced pioneers in collaborations often struggle with technical details such as incompatible IT interfaces, newcomers often lack the network to even identify suitable partners in the market.
A reliable gauge of the location
To continuously monitor this implementation gap, PwC has set up a„Transformation index Germany“ Launched. The survey links macroeconomic data with direct assessments from corporate decision-makers and will be published in the semi-annual format in the future. The goal: to make structural weaknesses visible early on and provide guidance so that the German economy can keep up with international competition.