Digitalization Strategy for SMEs: Plan, KPIs, and Steps
Digitalization must start with business goals, not system selection. Here are the four areas to tackle first, six steps to the strategy, useful KPIs — and the mistakes that cause projects to fail after go-live.
Published · Updated · 7 min read
In short
- Describe the problem and goal before selecting the system.
- Prioritize one area at a time based on impact and effort.
- Measure behavior and time — not the number of licenses.
- Plan the implementation: training, data cleanup, and an owner per system.
What is a Digitalization Strategy?
A digitalization strategy describes how technology should be used to achieve the company's business goals — not which systems you want. It therefore starts with the business: where are you losing time, money, or customers, and what can digitalization change about that?
The mistake in most SMEs is the order. A system is chosen first, and then an attempt is made to find its value. The result is investments whose effect no one can measure, and employees who are doing double work.
A digitalization strategy is a strategic theme on par with growth and operations. It must have goals, KPIs, owners, and projects, and it must be followed up with the same cadence as the rest of the strategy.
Four Areas to Digitalize First
Prioritize based on where the most time is wasted today. Start with one area and complete it.
Sales and Customer Data
Shared overview of customers, offers, and hit rate instead of personal spreadsheets.
Examples: CRM, offer templates, digital order confirmation.
Operations and Delivery
Digital case management and time tracking provide real figures on delivery time and consumption.
Examples: Case system, mobile field registration, planning board.
Finance and Invoicing
Automated invoicing and continuous contribution margin per case instead of quarterly surprises.
Examples: Integration between case system and accounting.
Management and Follow-up
Automatic status on goals and KPIs instead of manually collected spreadsheets before every meeting.
Examples: Strategy platform with KPIs, projects, and reviews.
How to Develop Your Digitalization Strategy in Six Steps
1. Start with Business Goals
Write down the three to five business goals that digitalization should serve. Everything else is tool selection without direction.
2. Map Waste
Follow two to three core processes from customer inquiry to invoice, and note where data is entered twice, waiting occurs, or errors are corrected.
3. Assess Maturity
What do you have today: systems, integrations, data quality, and competencies? Be honest about what is actually used.
4. Prioritize by Impact and Effort
Choose initiatives with high impact and low effort first. They build the trust that larger projects require.
5. Set Goals and KPIs
E.g., “share of orders received digitally from 20% to 70% by year-end” or “hours spent on manual invoicing halved”.
6. Plan Implementation, Not Just Procurement
Training, data cleanup, and an owner per system. Most digitalization projects fail after go-live, not before.
KPIs for the Digitalization Strategy
Measure behavior and time — not the number of licenses purchased.
| Area | Poor Goal | Useful KPI |
|---|---|---|
| Sales | “We are implementing CRM.” | Share of offers created in CRM, measured monthly, target 95%. |
| Operations | “Digital time tracking.” | Share of hours registered on the same day, target 90%. |
| Finance | “Automate invoicing.” | Average time from completed case to invoice, from 9 to 2 days. |
| Data Quality | “Better data.” | Share of customers with complete master data, target 98%. |
Five Classic Mistakes
- The system is chosen before the problem is described.
- Everything is digitalized at once, so none of the projects are completed.
- No system owner after go-live, so old workflows persist.
- Data is moved without cleanup, so distrust in the numbers follows.
- The effect is never measured, so the next investment cannot be prioritized.
AI in the Digitalization Strategy
AI belongs in the strategy, but only where data and processes are in place.
| Application | Prerequisite | Realistic Effect |
|---|---|---|
| Drafts for offers and texts | Templates and approval flow. | Shorter response time to inquiries. |
| Analysis and summarization | Data collected in one place instead of spreadsheets. | Faster management reporting before meetings. |
| Strategy work | Goals, KPIs, and projects registered. | Suggestions for goals and KPIs based on the company's own context. |
Frequently asked questions
What is a digitalization strategy?
+
A digitalization strategy describes how technology and data should be used to achieve the company's business goals. It includes prioritized areas of effort, digitalization goals, KPIs, owners, and an implementation plan — not just a list of systems.
How does an SME get started with digitalization?
+
Start by following two to three core processes from customer inquiry to invoice and note where data is entered twice or waiting occurs. Choose the initiative with high impact and low effort, set a KPI for it, assign an owner, and complete it before starting the next one.
Which KPIs are used for digitalization?
+
Measure behavior and time rather than procurement: share of orders received digitally, share of hours registered on the same day, time from completed case to invoice, share of offers created in the system, and share of complete master data.
Why do digitalization projects fail?
+
Most often after go-live. The system is chosen before the problem is described, there is no owner after implementation, data is moved without cleanup, and the effect is not measured. Therefore, old workflows survive side-by-side with the new system.
Where does AI fit in?
+
AI provides impact where data and processes are already in place: drafts for offers and texts, summarization for management reporting, and suggestions for goals and KPIs based on the company's own context. Without structured data, AI becomes an experiment, not a gain.
Related guides
These guides are closely connected to digitalization strategy and are natural next steps in your strategy work.
- Strategy Software vs. Spreadsheets
- What is a KPI? Guide with examplesGood KPIs, baselines, target levels and data sources.
- Strategy implementation in practiceHow strategy gets executed instead of archived.
- Strategy plan: template and contentWhat a usable strategy plan contains — and what to leave out.
More strategy guides
Analysis and environment
Goals, KPIs and performance
Strategy process and planning
Follow Digitalization as a Strategy
Create a free account and manage digitalization goals, KPIs, and projects along with the rest of your strategy.