Johannes Baier July 21, 2025

Digitalisation in SMEs

Digitalisation is one of the biggest opportunities for small and medium-sized enterprises (SMEs), but also a considerable challenge. SMEs in particular face the task of modernising their proven processes in order to stay competitive. But what options are there in concrete terms? What benefits does digital transformation bring, and how can you get started efficiently?

In this article we look at why digitalisation is becoming increasingly important for SMEs, what concrete benefits it brings and which best practices have proven themselves. Finally, we show how Craftcloud supports you on your way to digital transformation with practical software, personal support and sound experience.

Digitalisation is advancing in SMEs too

According to a survey by the German Federal Network Agency, 59 per cent of all processes in SMEs could in theory be digitalised, and on average 41 per cent are already digitalised. So a lot of potential is still untapped: in the trades and in traditional industries in particular, comprehensive digitalisation is often lagging behind. What is frequently missing is a clear strategy, time or simply the resources to implement it.

At the same time, the pressure is rising: customers expect digital processes – from online appointment booking to digital invoices. In competition, too, the businesses that organise their workflows more efficiently and use modern tools in a targeted way are increasingly winning.

The good news is that the willingness to invest is growing. Funding programmes such as Germany’s “Digital Jetzt” or regional initiatives support SMEs financially with their digitalisation. This makes it clear: digitalisation in SMEs is not a trend but a necessary development in order to survive in the future.

The benefits of comprehensive digitalisation in SMEs

Regardless of industry or company size, digital solutions offer numerous ways to optimise existing workflows. This is not only about technology, but above all about clear processes, transparency and better collaboration.

Centralised data storage

Information such as customer data, company documents or maintenance plans can be bundled in one place. This makes access easier and reduces errors caused by maintaining the same data in several places.

Better planning of work processes

Digital tools allow more precise scheduling, faster communication and traceable documentation. This makes both internal coordination and work with partners and customers easier.

Digital management of equipment

Software solutions can map master data, location information, inspection dates and maintenance histories clearly and make them available on mobile devices.

Easier compliance with legal requirements

Inspection cycles and maintenance can be planned and documented automatically, so companies are better prepared for audits or inspections.

Access to information from anywhere

Cloud-based systems give access to up-to-date data from different devices, for example in the office, on the construction site or in the warehouse.

Further benefits at a glance

• Faster flow of information between departments
• Less paper and more efficient document management
• Better traceability of work and inspection processes
• More up-to-date data thanks to central, digital maintenance
• Less administrative work for employees

Best practices for digitalisation in SMEs

1. Start digitalisation with a clear goal

   It is advisable to begin with an analysis of existing processes: where do delays occur regularly? Which workflows are particularly labour-intensive? Only when the problem areas are clear can suitable digital tools be selected. Without a target picture, there is a risk of digital overload without real added value.

2. Involve employees early on

   Digitalisation is not a purely technical project, because it affects the everyday work of many people. Involving employees early ensures greater acceptance and often provides valuable practical input. Training and regular feedback help to reduce reservations.

3. Start small, but follow through

   In SMEs in particular, it makes sense to start with manageable projects – for example with digital equipment management or the introduction of central document management. It is important that the chosen solutions are scalable and can be expanded if they are successful.

4. Use external expertise

   Many SMEs do not have their own IT department. In such cases external support is helpful, whether from specialised service providers, funding programmes or regional digital centres. They help with implementation as well as with choosing suitable tools.

5. Think about data protection and IT security from the start

   An often underestimated aspect: with digitalisation, the requirements for data protection and IT security also increase. Technical measures such as regular backups, access rights or two-factor authentication should be planned in from the very beginning.

Challenges of digitalisation in SMEs

Shortage of skilled workers

Many businesses lack the in-house know-how or available IT specialists to implement digital projects or look after them in the long term.

Lack of time in day-to-day business

In smaller companies in particular, digital projects often take a back seat because day-to-day operations leave hardly any room.

Limited financial resources

Investing in new software, infrastructure or external consulting is a financial effort for many SMEs that needs to be well planned.

Uncertainty about technology

The wide choice of tools, systems and providers overwhelms many managers. It is difficult to select and assess the solution that fits in the long term.

Lack of strategy

Without a clear digitalisation strategy there is a risk of isolated solutions that are not connected to each other and create extra work.

How companies can meet these challenges

A pragmatic approach starts with taking stock: which processes are currently causing the most problems? Where can quick wins be achieved? Small but concrete digitalisation projects such as article and warehouse management or organising customers bring initial relief and acceptance within the team.

It is also worth looking at funding programmes and talking to industry-specific providers such as Craftcloud, who offer proven solutions and practical support.

Digitalisation as the key to the future of SMEs

Digitalisation in SMEs has long ceased to be a detached topic for the future; it is a key requirement for competitiveness, efficiency and long-term growth. For small and medium-sized enterprises in particular, it offers the opportunity to streamline processes, cut costs and strengthen their position in the market.

It is important not to do everything at once but to proceed step by step – with a clear goal, realistic planning and the right support. Whether through targeted funding, external consulting or established software solutions: the path to digital transformation becomes much easier with the right partners.

Craftcloud supports companies in exactly this with a proven, intuitive software solution tailored to the needs of the trades and related industries. Personal support, clear functions and scalable modules help to make digitalisation tangible and sustainable. Request a demo now, completely without obligation.

Sources (German)

• https://www.kfw.de/Über-die-KfW/KfW-Research/Digitalisierung.html
• https://www.bundesnetzagentur.de/DE/Fachthemen/Digitales/Mittelstand/start.html
• https://digitalzentrum-berlin.de/digitalisierung-im-mittelstand-vier-aktuelle-studien
• https://digital-x.eu/de
• https://www.bundeswirtschaftsministerium.de/…/mittelstand-digital.pdf
• https://www.de.digital/…/digitalisierungsindex.html
• https://www.iwkoeln.de/…/unterstuetzungsbedarfe-in-der-digitalen-transformation.html
• https://www.bundesnetzagentur.de/DE/Fachthemen/Digitales/Mittelstand/Kennzahlen/start.html
• https://www.bundeswirtschaftsministerium.de/Redaktion/DE/Dossier/digital-jetzt.html