Platform-based solutions in the German craft sector

Abstract

Digitalization continues to gain in importance. Entire industries have been revolutionized by platform-based companies. Companies that cannot keep up with this rapid change will sooner or later lose out. This development is not limited to industry or commerce; it will also affect traditional industries such as the skilled trades in the foreseeable future. Therefore, the following research questions are examined in more detail in this paper: - What opportunities and challenges do digital platforms offer as an (additional) business model for craft enterprises? - How can craft enterprises use these insights? Studies show that the challenges outweigh the opportunities when it comes to developing a platform of their own for small craft enterprises. A development time of several years, barriers to thinking, and a lack of personnel and time resources inhibit innovative investments within the craft enterprises. Nevertheless, the opportunities that come with the use of an in-house or external platform are of great importance for the survival of craft enterprises. As technology advances, the industry will become a strong competitor for the manufacturing trades. Through digital platforms, small businesses can build up a network and thus save costs and increase efficiency. In addition, many customers request an increasingly comprehensive holistic service which must be implemented primarily using digitized processes. Consequently, many small craft businesses must deal with this topic. At present, most companies are relying on their business model. Future developments are not adequately questioned and consequently a strategy is missing. This poses the risk that early entry will be missed. In addition, some gaps have been noticed in the research; for example, the lack of differentiation between rating or mediation platforms and a holistic ecosystem, the lack of investigation of private and public platforms, and the (future) role of industry in the craft sector.