Why are small and medium-sized enterprises afraid of digitalization?

Why do many SMEs, when they hear the word "digitalization," react not with excitement but with a headache?
It's not that business owners don't want to upgrade.
It's that they know all too well what implementing a digital system really means.
First, research and process mapping, then solution design, implementation, training, and endless requirement changes…
Six months later, the system may not even be running.
Even worse, the business keeps changing, but the software has already "locked in" the processes.
So you will notice a strange phenomenon:
Enterprises clearly need digitalization, yet instinctively avoid it.
Why?

Many digitalization projects in the past had a fundamental problem:
We have been asking enterprises to adapt to the software, rather than letting the software adapt to the enterprise.
What does this mean?
Traditional digitalization emphasises "standardization."
Enterprises first clarify their business processes, then reorganise them according to the software's logic.
This approach works for large enterprises.
But for many SMEs, the reality is quite different.
Today a new customer comes in – processes change;
Tomorrow a new batch of products arrives – processes change;
The day after, the owner adjusts the business model.
Asking them to spend six months standardising everything before going live with a system?
Enterprises cannot afford to wait.

That is why the recently released MIIT guideline – "Small, Fast, Light, Precise" Digital Products and Services Cultivation Guidelines (2026 Edition) – is worth attention.
What makes this document truly interesting is not just the four words "small, fast, light, precise."
Rather, it sends a clear signal:

SME digitalization can no longer follow the logic of "big projects" from the past.

In the past, we always thought that the bigger and more feature-rich the digitalization, the more advanced it was.
But this time, the direction may be reversing:
Start by making digitalization "small."
Don't rush to implement a "comprehensive" system.
First, solve one specific problem for the enterprise.
For example, help them reduce equipment downtime;
Or help them with quality traceability;
Or even just help them get production scheduling right.
Get the enterprise to actually start using it.

Then, it must be "fast."
You can't sign a contract today and expect to see results six months later.

It must also be "light."
Less complex implementation, more out-of-the-box functionality, configurability, and open interfaces.

Finally, it must be "precise."
Don't tell the owner:
"Our system has 500 features."
Instead, tell them directly:
"How much money and efficiency this product can actually save you."

What you will find is that this is actually changing something very important:
Digitalization in the future may increasingly become:
"Helping enterprises solve problems one by one."

Therefore, what truly deserves attention about "small, fast, light, precise" is not the four words themselves.
Rather, what they may imply is:

SME digitalization is moving from "big projects" to "small products";from "implementing systems" to "solving problems."

But here comes the question.
If software is truly going from "big" to "small," what will industrial software look like in the future?

To be continued in the next issue.