Definition: What does SME digitalization mean?
SME digitalization encompasses all measures by which small and medium-sized enterprises introduce and utilize digital technologies – from the basic digitalization of processes to the digital transformation of the entire business model.
In the DACH region, SMEs form the backbone of the economy: over 99% of all companies are SMEs, employing around 60% of all workers. Their digitalization therefore has not only individual but also overall economic significance.
The particular challenge: SMEs generally have less budget, personnel, and IT know-how than large corporations – but must compete with the same digital competitors and meet the same customer expectations. The opportunity: SMEs are more agile, make decisions faster, and are closer to the customer.
Status Quo: Where do SMEs stand in the DACH region?
The digital maturity level of SMEs varies greatly:
- Basic Digitalization (largely completed): Email, office software, website, digital accounting
- Process Digitalization (in progress): CRM, ERP, digital workflows, cloud solutions
- Digital Business Models (at the beginning): Online services, data-driven offerings, AI utilization
The most common hurdles: lack of time (daily business takes precedence), lack of know-how, unclear ROI, data protection concerns, and a shortage of skilled IT workers.
The 5 Most Important Fields of Action
1. Digitalize Customer Interaction
The customer journey is becoming increasingly digital – even in B2B. Online appointment booking, digital quoting, customer portals, and automated follow-up make the difference between a won and a lost customer.
2. Automate Internal Processes
Repetitive manual tasks cost time and cause errors. CRM systems, digital workflows, automated invoicing, and project management tools create space for value creation.
3. Utilize Data
SMEs also sit on valuable data – but rarely use it systematically. Data-driven decisions, customer analyses, and performance dashboards provide the basis for better business decisions.
4. Build Digital Competencies
Technology alone is not enough – people must be brought along. Training, change management, and digital leadership (Digital Leadership) are at least as important as the right software.
5. Further Develop the Business Model
The biggest lever: using digital technologies not just for efficiency, but for new revenue streams. Subscription models, digital services, platform approaches, or AI-powered offerings can complement the core business.
Quick Wins: Immediately Implementable Measures
- Introduce Cloud: Microsoft 365 or Google Workspace for communication and collaboration – implementable within a week
- Start CRM System: HubSpot (Free), Pipedrive, or Brevo for systematic customer management
- Online Appointment Booking: Calendly or Microsoft Bookings for automatic appointment scheduling
- Utilize Generative AI: ChatGPT or Claude for content, research, email drafts, and analysis
- Digital Signature: DocuSign or PandaDoc for paperless contract closures
- Automate Processes: Zapier or Make for simple workflow automation without programming
Funding Programs and Support
In the DACH region, there are numerous funding programs specifically for SME digitalization:
Austria
- KMU.DIGITAL: Consulting and implementation funding for digitalization
- FFG Basic Programs: Funding for innovative digitalization projects
- aws Digitalization: Subsidies for digital investments
Germany
- Digital Jetzt: Investment grants for SME digitalization
- go-digital: Consulting funding for IT security, digital business processes, and online marketing
- Mittelstand-Digital: Competence centers with free consulting and workshops
Switzerland
- Innosuisse: Innovation funding with a digitalization focus
- Cantonal Funding Programs: Various offerings depending on location
Develop an SME Digitalization Strategy
- Determine Digital Maturity: Where do you stand today? Use a digitalization check
- Prioritize Pain Points: Where does analog work cost the most time, money, or customers?
- Choose 2-3 Focus Topics: Not everything at once – concentrate on the biggest levers
- Quick Wins First: Start with quickly visible improvements to build momentum
- Involve the Team: Digitalization only works with people – change management from the start
- Apply for Funding: Utilize available funding programs – often 30-80% cost coverage
- Expand Gradually: After quick wins: develop an innovation strategy and evaluate digital business models
Digitalization for your SME?
We support SMEs and mid-sized companies in strategic digitalization – from quick wins to new business models.
Frequently Asked Questions
What does SME digitalization cost?
Costs vary greatly. Basic digitalization (cloud, CRM, digital tools) starts at a few hundred euros per month. More comprehensive projects (ERP, customer portal, automation) cost 10,000-100,000+ euros. Funding programs often cover 30-80% of the costs. Important: Digitalization is an investment, not a cost factor.
Where should an SME start with digitalization?
Start where the biggest pain point lies: Are you losing customers due to slow quoting? Digitalize the quoting process. Do you spend hours on manual data entry? Automate the workflow. The best quick wins: introduce CRM, online appointment booking, generative AI for content and communication.
What funding programs are available for SME digitalization in Austria?
The most important programs: KMU.DIGITAL (consulting and implementation), FFG Basic Programs (innovative projects), aws Digitalization (investment grants), and the AI-Checker (free initial AI consultation). The WKO also offers regional digitalization consulting. Funding amounts are usually 30-80% of eligible costs.
Does an SME need a digitalization strategy?
Yes – but not a 50-page strategy. For SMEs, a focused digitalization plan of 2-3 pages is sufficient: Where do we stand? Where do we want to go? What are the next 3 concrete steps? Without a plan, uncontrolled growth threatens: isolated solutions that don’t fit together, and investments without strategic benefit.