Low code: Opportunities and opportunities for digitizing SMEs
Digital transformation is a challenging process that places high demands on SMEs in particular. Compared to larger competitors, there is often a lack of sophisticated concepts for exploiting the potential of digitization. A lack of IT know-how or a lack of IT infrastructure are among the reasons. Low code is a method by which small and medium-sized businesses receive support for digital transformation. Simplification, acceleration and agility are just some of the benefits that low code offers for digitization in SMEs.
Importance of low code for digitization in SMEs
Small and medium-sized enterprises (SMEs) often still have some catching up to do compared to larger corporations when it comes to digital transformation. According to research by the KfW Bank (Kreditanstalt für Wiederaufbau), SMEs are spending more and more on digital transformation projects. Despite increasing budget spending in SMEs, however, the use of digital opportunities is often limited to individual, simple applications. These tools include cloud storage or communication tools. Only a fraction of SMEs are pursuing an overarching strategy for digital transformation. The reasons for the lack of digitization in SMEs are usually a combination of high costs for digital infrastructure and a lack of IT specialists in their own company.
At the same time, challenges are growing as a result of advancing digitalization and greater competition among SMEs. If you, as a person responsible in a medium-sized company, continue to wait to invest in a digitization strategy, valuable potential for a sustainable business model for digital transformation is lost.
Low code overview: origin and significance for digital transformation
In terms of concept, low code means “low code effort.” It is about developing appealing applications with little code and little programming work. It mainly involves creating software solutions that would otherwise require complex programming. Low code makes use of sophisticated modeling methods and application designs. The modelling concepts have graphical interfaces and visual representations. Software and applications can therefore not be developed using conventional, manual programming methods.
The term low code is attributed to analysts Clay Richardson and John Rymon. These analysts from market research institute Forrester Research coined the term Low Code in a 2014 report (New Development Platforms Emerge For Customer-Facing Applications).
Basically, the idea of low code can be traced back to the 1990s. During this time, many programming approaches have been developed that make work easier for the user. Delphi and Visual Basic, for example, were created under the term RAD (Rapid Application Development).
In the course of digitization, low code is particularly important in connection with corresponding low code development platforms. These first appeared in the USA and have developed into an important component for the digital transformation of companies. What they have in common is that it should be possible to create applications and software without extensive programming knowledge. A distinctive feature of low-code platforms is the design of applications based on a modular principle. Thanks to visual application logic, end users in SMEs can develop software solutions for digital transformation according to their own criteria without special know-how.
Market research firm Forrester estimates that the market for low-code platforms will reach a volume of up to 22 billion US dollars by 2022 as a result of digitalization.
Distinction from No Code
The abbreviation “Low” already indicates that corresponding platforms do not work completely without programming. It is therefore important to differentiate the no code approach from low code. The latter does not provide for any programming work at all. In addition, further programming is not possible in no-code platforms. No Code is therefore regarded as an evolution of low code. Most of these offers and platforms are aimed specifically at end users, sometimes even at private users. However, this offers advantages in terms of convenience and the fact that it is no longer possible to connect more complex systems or individual components. This makes pure no code less suitable for the digital transformation of companies.
When programming work is or will be required for digital transformation in SMEs depends primarily on the specific project and the associated requirements. According to a rule of thumb, around 80 percent of all application or software development can be done without programming. Individualizations, specializations, and fine-tuning require at least basic programming work.
Low code and its benefits for digitizing SMEs
Low code reduces the barriers to developing applications for digital transformation in SMEs. This makes low code an important cornerstone for the digitization of SMEs. In addition to the immediate advantage of creating the software quickly and promptly, the approach offers a number of other advantages.
Intuitive development and management
The IT infrastructure of many companies is characterized by a variety of complex systems, such as enterprise resource planning (ERP), customer relationship management (CRM) or various human resources software solutions, especially in the course of digitization in medium-sized companies. Numerous technologies must be integrated within the company or across the board. At the same time, the challenge for SMEs to achieve results quickly is increasing. These requirements call for a modern solution in which applications can be developed, operated and managed without major hurdles. The challenges can be overcome with low code both online and offline, mobile and on the desktop. Web and mobile applications can be created directly by internal employees with only a short training period.
Independence of SMEs from external developers
Low code can be seen as a way out of the lack of know-how for digitization in SMEs. Digital transformation is a problem for many companies precisely due to a lack of IT expertise. Where complex applications previously required programming skills, Low Code offers an alternative.
Applications can be created conveniently and without much knowledge by the end user using low-code platforms. One example of application is the configuration of functions of a program using a graphical user interface (GUI: Graphical User Interface). The approach thus helps to overcome one of the biggest challenges faced by SMEs in terms of digitization. Through graphical user interfaces and drag-and-drop logic, even non-IT professionals can create applications among employees. They create their own, individually tailored apps. This happens regardless of what capacities or resources are currently available for digitization in the company.
Reducing the burden of resources when digitizing SMEs
Thanks to the simple graphical programming environment of the low-code platforms, employees from various departments in medium-sized companies can participate in creating the applications. This relieves the company's IT specialists from the task of digitization. The IT department, if there is one, does not have to deal with repetitive and simple tasks. This helps us to concentrate better on our core business. Money and resources can be saved for more complex digitization tasks.
Flexible application development in various departments
The independence of programming experts enables the flexible development of specialized applications for the various business sectors in medium-sized companies. Non-programmers from different specialist departments can participate productively in the software development process and thus drive digital transformation forward. This allows individual users as well as entire departments to design the applications they need. This has the advantage that specialized technical know-how flows into the created applications without detours via IT experts. This contributes to the professional quality of the applications. This also enables users to better meet the respective requirements and schedules.
Easy to create and short training time
The enormous simplification of programming effort for SMEs is implemented on low-code platforms using various graphical development modules. This includes tables and flow charts. The drag-and-drop principle makes it possible to model individual applications. This includes database models as well as business solutions and user interfaces. Even after a short training period, non-specialist employees are able to carry out professional development work. Low-code development also meets the need for complex applications for digital transformation. This makes it possible to adapt to specific requirements in SMEs.
Saving time through faster development for digital transformation
In traditional development, creating complex applications takes a lot of time. Writing code is also a time-consuming task for qualified IT professionals, as some things have to be entered manually. In view of increasing competition among SMEs, this required time is often no longer available. A particularly obvious advantage of low-code development is therefore the significant time savings for digitization. The applications are not only easier to create, but with a speed advantage of up to ten times over regular programming.
Depending on your requirements, complete digital applications and processes can be created within just a few hours or a few days. The user interface and application development are created in parallel when creating the concept in a low-code platform. As soon as someone develops an application, a graphical interface is generated at the same moment. This is a further contribution to efficiency and shortening development time in SMEs.
Agility: adaptability to new challenges of digitization
The requirements for medium-sized companies are subject to constant change as a result of digitization. This increases the need to adapt systems and processes to the new circumstances. Thanks to their adaptability, low-code development applications are just as quickly ready for the new challenges and requirements. In conventional programming, even small changes in requirements often require major intervention in the code or at least a longer training period. With support from low-code platforms, this effort is eliminated.
Process optimization is an essential point of digitization in medium-sized companies. In this context, agility is of particular importance and describes the highest level of adaptability. Agility is particularly important when it comes to responding quickly to new customer requirements. In view of the increasing competition for digital transformation in SMEs, only companies that react quickly to these challenges can assert themselves in the longer term. Low code enables the agile implementation of new applications. This potential can be used on both mobile and desktop devices and respond to new digitization requirements within a few days or hours.
Integration of existing systems
Integrativity is an important factor in the corporate world, including for digitization in SMEs. As a rule, existing systems should continue to be used as part of digitization and enriched by new applications. Low-code solutions can usually be easily integrated into the existing infrastructure via open interfaces. As a result, the created applications fit into the existing architecture. Ideally, a platform is created that efficiently links all apps together. This option also depends on the choice of the appropriate platform. When the new applications are integrated into familiar systems, employees can continue working in a familiar environment. This environment is extended with complementary tools and apps that are easy to develop and learn.
Create prototypes faster
After the introduction of low code in a company, a variety of new applications are quickly created. The low cost and simplified accessibility invite intensive use. Employees of medium-sized companies quickly recognize the added value of such a platform. Created applications are quickly ready for use. There are no major transition or introduction phases. This property also and in particular benefits prototype construction in times of digitization. When new ideas and concepts arise in the company, they can be implemented with the help of low code and then immediately tested in practice. Prototyping benefits from this. This is facilitated, while the testing option promotes acceptance among potential end users.
Diversity and individual solutions
Intuitive low-code programming goes hand in hand with almost limitless opportunities for digitization in SMEs. Processes, services and products can be digitally advanced in a variety of ways. With sophisticated technologies, products can be continuously improved. Challenges such as digital communication with customers (for example via social media), responsive presentation of orders or payment transactions require constant adjustment and improvement. The increasing importance of IoT (Internet of Things) devices is also an example of an area that needs a rapid response to new challenges. Using low code, you can react quickly to new needs or new business growth goals and integrate appropriate applications into your IT landscape. This makes the low-code platform a valuable bridge between IT and business.
Responsivity and mobile applications
The digital transformation in SMEs is also increasing the importance of various devices and device platforms. Potential customers require that a company's web presence be presented in an appealing mobile way. Modern low-code platforms enable responsiveness, i.e. the adaptation of apps and their presentation on various devices. Operators of low-code platforms pay attention to responsive adaptation right from the factory. This ensures that apps developed on it always have the same appearance and the same functions. This works regardless of the type of resolution or the size of the screen of the device you are using. The apps are also available for all common platforms, so no change or adjustment is required. Low-code platforms are optimized for mobile application scenarios in digital transformation. For this purpose, they use native device properties such as sensors, location detection or the built-in camera.
Low-code platforms and their similarities
There are a number of different low-code platforms (also known as a low-code automation platform) for low-code programming. They come from different providers and, in some cases, pursue different concepts and functions for digital transformation. However, they share fundamental similarities. What most providers have in common is a visual presentation layer with graphical editors. This allows interface elements or the user interface to be designed and arranged. Typical platforms also have a layer of business logic. These too are usually equipped with visual editors and are suitable for creating business processes and entities. This is supplemented by a data layer that is used to generate business entities. The platforms are also equipped with basic services such as authorization and authentication.
Overview of how it works
The visual editors of low-code development platforms typically follow the classic WYSIWYG approach (What You See Is What You Get) when it comes to interface creation. There are certain structural elements on a graphical drawing board, which you as a user can align as you wish. From this, the visual editors create either a source code or a definition for the interface.
Data management for digital transformation is more complex. Tables and other elements must be filled with data from specific sources (such as customer databases). Low-code platforms also overcome this challenge with visual editors. Its strength lies in the fact that all data accesses and mappings do not have to be carried out manually. This alone already saves enormous amounts of time. The implementation logic differs depending on the development platform.
When it comes to creating the logics, the question is how to define without code what happens with a specific click. Here, too, the platforms work with visual editors. These follow different approaches depending on the platform and are able to implement even complex processes for digital transformation. When it comes to particularly complex digitization problems, many editors also bring their own scripting languages.
The challenges of testing and deploying new applications require an enormous amount of time in conventional programming. Low-code platforms offer internal automation methods for testing applications. If the test goes beyond standard problems and requires manual intervention, the low-code platform also makes use of various visual editors.
A distinctive feature of development platforms is that they largely hide the underlying technologies and do not confront end users with them. On the one hand, this should make users' work as easy as possible, and on the other hand, they should be able to use the entire range of functions for digital transformation.
Conclusion: fit for digital transformation with low code
Low code is an opportunity, especially for medium-sized companies, to develop software with manageable expenditure of time and costs. If the conditions are right, the use of a low-code platform is recommended as support for digital transformation. Low code shows its strengths, particularly when it comes to creating data-intensive applications. When competing, small and medium-sized enterprises face the challenge of reacting quickly to changes in the business world. Low code promotes digital transformation, ensures independence and thus contributes to future security.
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