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Generational change – who will digitize family companies?

In family companies, the role and importance of successors appears most clearly in digitalization, which can significantly contribute to the company’s successful operation.

A wave of digital development may come for domestic family companies. More than half of them are already dealing with this at a strategic level, and every fifth company owes its competitive advantage to these developments – this was revealed by the survey conducted among family companies by K&H.

In the next few years, a wave of digital development will come to family companies. This is shown by the survey conducted by K&H among family companies, according to which digital developments are already part of the strategy in more than half of the companies. Every fifth company owes its competitive advantage over its competitors specifically to these developments. “Digitalization and artificial intelligence is one of the most important and exciting topics today, which is also strongly related to the change of generations in family companies. The successor always brings something new, in this case it is a continuous online presence. The older generation must therefore give space to develop, because these kinds of developments can give a big boost to the company’s operation,” said Ákos Ékes, head of the K&H family companies center.

It should be cheap, fast and efficient

IT is taking an ever-larger slice of companies’ annual budgets, which is also confirmed by Deloitte’s IT budget survey. According to this, the ratio of technological expenses to sales revenue is rising dynamically, rising from 3.3 percent to 5.5 percent between 2021 and 2023. Not only the sales revenue-based, but also the total value of technological expenses shows an increasing trend, in 2024 it may exceed the value of 2023 by another 8.6%.

According to András Szathmáry, Deloitte’s director of business management and technology consulting, there are three typical business managers’ expectations regarding IT developments: they should be cheap, fast and good. However, all three can never be primary at the same time, so you have to strive for the optimum, considering the priorities along the strategy, but also on a project-by-project basis. “If the owner decides to select the IT system based on emotions, then the real needs are typically not accurately assessed. However, for a successful implementation project, it is essential to see in advance and in detail the expectations that the future solution must meet. The business in addition to goals, we must not forget what skills and competences are available within the company, as well as what may need to be brought in from the outside in order for the introduction and subsequent operation to be smooth”.

I am a tech enthusiast, cinema lover, and news follower. and i loved to be stay updated with the latest tech trends and developments. With a passion for cyber security, I continuously seeks new knowledge and enjoys learning new things.


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