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Why processes in companies need to be rethought

Introduction

In a rapidly digitizing world, small and medium-sized enterprises (SMEs) in Germany are facing the challenge of rethinking their processes. Digitalization is no longer just a trend, but a necessity in order to remain competitive. This article sheds light on why and how SMEs should transform their processes through digitalization in order to become more efficient and future-proof. In particular, in-house knowledge management and knowledge transfer will be highlighted, the importance of which should not be underestimated in the context of digitalization – especially in family businesses, where the transition from one generation to the next often brings additional challenges.

The necessity of digitalization in SMEs

In Germany, small and medium-sized enterprises form the backbone of the economy. A 2023 study shows that over 60% of SMEs have expanded their digital processes in the last five years, underlining the growing importance of digitalization. The benefits are manifold: increased efficiency, reduced costs, improved customer interaction and increased competitiveness.

Digitalization enables SMEs to react more agilely, identify market trends more quickly and adapt their services or products accordingly. It also opens up opportunities for new business models and sources of income. For example, data-driven decisions can be used to create more precise and customer-specific offers, which in turn increase customer satisfaction and loyalty.

In-house knowledge management and knowledge transfer

Effective in-house knowledge management is crucial for the success of digitalization in SMEs. The aim is to record and organize existing knowledge within the company and make it accessible to all employees. This is particularly important when it comes to the transfer of knowledge in the event of a change of management, as is often the case in family businesses.

The challenge lies in converting the tacit knowledge in the minds of employees into explicit knowledge that can be digitally recorded and passed on. This requires suitable technologies and processes, but also a corporate culture that promotes the exchange and documentation of knowledge.

In family businesses, knowledge transfer can be particularly difficult when there is a generational change. Knowledge of business processes, customer relationships and company values is often closely linked to the founding generation and not systematically documented. This is where a digital transformation can help to secure this knowledge and make it accessible for future generations.

Challenges in process digitization

However, digitalization in SMEs is not without its challenges. Many companies are faced with the problem that their existing processes and systems are not designed for digital transformation. The changeover often requires considerable investment in new technologies and infrastructures. In addition, the introduction of new digital processes can lead to resistance among employees who have become accustomed to traditional working methods.

There are also specific challenges for family businesses. These companies have often grown over generations and have developed fixed structures and working methods that can make digitalization more difficult. The change in management level, for example from father to son, often brings with it different views on the necessity and implementation of digitalization.

The role of agencies in digitalization

Agencies play a crucial role in supporting SMEs in the digitalization process. They not only offer technical expertise and support with the implementation of new systems, but can also provide valuable advice on strategy and change management.

One of the main tasks of agencies is to help SMEs identify their specific needs and develop customized solutions. This includes analyzing existing processes, recommending suitable technologies and providing support during implementation. Agencies can also offer training for employees to facilitate the transition to new digital ways of working.

Another important aspect is support for knowledge management. Agencies can help to implement systems that facilitate the collection, sharing and use of knowledge within the company. This is particularly important to ensure a smooth transfer of knowledge in the event of a change in management.

Conclusions and outlook

For small and medium-sized companies in Germany, digitalization is not just a trend, but an essential development in order to remain competitive in an increasingly digital world. The challenges facing SMEs and family businesses in particular are many and varied, but not insurmountable.

By implementing effective digitalization strategies and using in-house knowledge management systems, SMEs can increase their efficiency, secure knowledge transfer and strengthen their market position. Collaboration with specialized agencies can play a key role in this by offering tailor-made solutions and guiding companies through the process of digitalization.

The path to the digital future may be challenging for some SMEs, but it also offers immense opportunities for growth and innovation. Digitalization is a continuous process that requires adaptability and openness to new methods. For those who are prepared to follow this path, a promising future lies ahead of them.

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