Use funding programs for digitalization and Smart-Information: When, if not now?!

Digitalization promotion and Smart-Information?

We're all familiar with them, the funding opportunities for digitalization that are always in the news or even in strategy meetings. It is often a bit foggy as to what is being promoted and whether one's own concern is included. The good news: Smart-Information is virtually the epitome of digitalization. Smart-Information is what makes many standard projects eligible for funding in the first place. But which funding is eligible depends not only on the content; often, for example, the "where" is much more important than the "what." To give you a start and a little guide in your endeavor, we deal with the most important questions about it below. And at the end, there is an overview of the most important current funding programs. All of this, of course, with the understanding that we do not guarantee correctness or completeness.

Digitalization for Smart-Information - but how?

The question of chicken and egg would now be settled: In terms of eligibility, Smart-Information often represents the necessary basic prerequisite for digitalization. However, converting analog to digital processes and diligently collecting data alone does not make the available information smart. This is only achieved through their targeted evaluation and linking. Sales and pre-sales marketing benefit enormously from central access to company-wide data. This probably triggered the enthusiasm in our example of company management. However, the benefits of information linking go far beyond the pre-sales phase. Service and maintenance! Here, too, the context-sensitive availability of product information in the sense of Smart-Information offers great added value. However, providing maintenance manuals as PDFs here is hardly what is meant by Smart-Information. The maintenance-relevant information only becomes smart when the device independently recognizes a maintenance time and sends the activity to be carried out to users (at the customers) or to the service-engineers. The whole thing is best on the smartphone and with the associated instructions in the mobile version in the luggage, which can be followed step by step or skipped if necessary. To achieve this, data from different areas of the company must be linked and made accessible via a common platform. This requires a concept, as well as clever implementation.

Get to the funding pots!

Various funding programs are available for both conceptual consulting and technical implementation, some of which can even be combined with each other. For example, it is possible to take advantage of funded consulting by accredited service-providers for the development of a digitization plan in order to subsequently finance the technical implementation with another funding program. What are the programs? How do they differ? How can I best benefit from financing offers?

There are many possibilities, if only I knew which ones!

In principle, the funding landscape for financing digitization measures in Germany is broad.

In this context, a distinction must be made between the available funding options, i.e. loans and grants, and between mixed forms of the two. If these are loans, they are generally available at very low interest rates and with moderate repayment terms. The grants are almost exclusively partial grants with mostly 50% grant share, in some exceptions also up to 90%.

Existing funding pots are rarely available nationwide. For the most part, grants are distributed at the state level, although the offerings of the individual states vary widely. In some cases they are very extensive, in others there are no offerings at all, such as in Schleswig-Holstein.

Probably the best-known nationwide support program, it is advertised under the name "Go-digital" and is aimed at SMEs with fewer than 100 employees. Interesting is the grant share of up to 50%, which can amount to a maximum of 16,500€. However, there is a catch: The application can only be made in cooperation with an accredited service company and primarily for consulting services. This requires a cumbersome, as confusing search for the appropriate service company for one's own topic in the little topic-specific consulting network. Alternatively, you could start the accreditation process with the service company you trust, which is again very bureaucratic and time-consuming.

Geht es um die tatsächliche Implementierung der konzipierten Digitalisierungsmaßnahmen, bietet sich das bundesweite „Digital Jetzt“-Programm an, das im Juli 2020 ins Leben gerufen worden ist, um die Investitionsbereitschaft im Mittelstand insbesondere bei Zukunftstechnologien und digitalem Know-how zu erhöhen. Hier gibt es zwei Bereiche, die gefördert werden können: Investition in digitale Technologien und Investition in employeesqualifizierung. Voraussetzung zur Teilnahme ist das Vorhandensein eines Digitalisierungsplans.

Ideally, therefore, the combination of the two federal funding programs could finance the design, implementation, and qualification of the employees - albeit with some bureaucratic effort. Somewhat more accessible in many cases are the funding programs at the state level, of which we will provide a brief overview here.

The table provides an overview of current funding programs at both the state and federal level. The summary is based on current descriptions of the respective web tenders. If a funding pot has been forgotten here, please get in touch!

What do the funding programs do for me?

As the listed overview of funding programs shows, there are a variety of funding opportunities, but how can these be used specifically for a project in the direction of Smart-Information? First of all, it is important to know that the grants are based on defined content. Eligible grants can therefore be roughly divided into the areas of consulting, implementation, and acquisition of hardware and software, which each funding program is designed to address differently. Furthermore, the access to the subsidies is determined very differently. Here, the range extends from the restriction of specific accredited consulting firms, to fixed project sponsors, to the bureaucratically challenging application to a ministry. Thus, the first realization is that the funding content and funding access for a Smart-Information should be meaningfully aligned!

Recommendation on how to proceed with a funding project

If you want to take advantage of a grant, the first clear recommendation is always to get clarity on the actual application concept in the company. This is because a description of the project is required in the funding application at the latest, as well as its sustainable change impact on the company or its products and processes! At this point, please refer to our blog post "How do I get started?".

Traditional digitalization is no longer enough to be innovative.

Even today, a company-wide digitization strategy often means purchasing ERP software, introducing home office or revising the web CMS. In many cases, this may even be enough for funding, but it falls short of real innovation and future viability. Every digitization strategy needs these traditional topics. On the other hand, points such as new digital business models and Smart-Information must also be an integral part of such a strategy.

First, get an overview of how your topics interact. A neutral and competent view from the outside often helps. Many funding pots start to kick in at this very consulting service. Even if you don't find funding for your conception phase, this is an important part that you should always give the space it deserves. This way, you can then also start choosing the right funding pot with a coherent concept. But it also doesn't hurt to have read our table of funding pots before and keep it in mind during the design phase.

Caution Marketing!

A neutral and competent view from the outside, that's what we at the Smart-Information can do. That's one of the reasons we decided to do this blog series. We know how Smart-Information works! This is our daily business business. We are therefore happy to support you in the planning and conceptual design of your digitization projects and their funding.

For a sensible start to Smart-Information, see also the last article "How to get started right!" by Stefan Dierßen and Christian Hammer.

The 6-point summary when you need it fast

Digitalization is inevitable. Do it with concept and a forward-thinking strategy:

• Many funding pots at federal and state level, regionally very different

• Different funding types: Grants, credit assistance, hybrid systems.

• Funding agencies try to minimize bureaucratic hurdles

• Accreditation requirement for consulting companies does not necessarily guarantee the best experts for one's own topic

• A forward-looking strategy is essential

• The most important thing: Define the strategy that will get you through the next crisis and implement it purposefully - even without funding if necessary!