By Juliana Penagos Nigrinis, Lidia Morcillo & Clara Solé. MODACC.
Digitalization could have started as a trend, but now it is a well-known catalyst for change. For SMEs and micro companies, going digital is not just about adopting optimization tools, but about rethinking how they create and deliver value, stay competitive, and remain resilient in the ever-changing business environment. The triple transition—digital, green, and socially responsible—is reshaping the way companies operate. In this article we explore the following question: how can smaller companies turn digitalization into an opportunity for innovative change?
The triple transition
Businesses today are living through a three headed transition towards new ways of value creation. They are not only challenged to become more digital, but also more sustainable and socially responsible. For SMEs and micro companies, this is more than a complex policy agenda—it’s a business opportunity that is currently shaping customer expectations, supply chains, and future competitiveness. Embracing digitalization is a potent strategy to accelerate progress across all three dimensions and to effectively communicate it to the final customer.
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To adequately adopt digitalization to ensure it contributes to the purpose of the brand and is aligned with its DNA, companies should first identify the drivers, objectives and desired outcomes of digital implementation. This can allow for proper monitoring and would transform digital tools into enablers that make sustainability and social responsibility a business objective.
Digitalization as an ally for innovation
For small businesses, time is often the scarcest resource. Digital tools—ranging from simple process automation to advanced data insights—can free up hours otherwise lost to repetitive tasks. This efficiency allows SMEs to redirect resources toward bringing in creative professionals with the expertise needed to generate differentiated value. In turn, it creates the conditions for creativity and innovation to flourish. In this sense, digitalization is not just about efficiency—it’s about giving SMEs the time and capacity to experiment, reinvent, and stay competitive.
SMEs: the ideal scenario for digital adaptation
Unlike larger corporations weighed down by complex hierarchies and highly complex protocols, SMEs have the advantage of agility. They can test, adapt, and integrate digital solutions at a much faster pace while ensuring their needs are met. Their resilience, close customer relationships, and capacity for pilot projects make them the ideal business case for digital transformations. This adaptability has the potential to position SMEs not as late adopters, but as pioneers if they play their cards right. But even with this agility, SMEs must navigate real-world obstacles—because the road to digital transformation is rarely a smooth one.
Challenges to overcome
As expected, the path to digitalization brings challenges as well. For many SMEs, costs can be a barrier for integration, and the return on investment may be a long-term benefit with difficulty to perceive an immediately visible. Technical expertise can be scarce, and communicating the added value of digitalization in the final product can be difficult. This is why collaboration, partnerships, and shared ecosystems are key to making digitalization accessible and sustainable for smaller businesses. An example of strategic collaborations that enable SMEs to explore digital tools that enable sustainable, and social change was the technology fair, which was created Tecnomoda 360 under the CRAFT-IT 4SD European program, as part of the first pilot iteration in Catalonia. Where Catalan fashion brands had a specific space designed to meet technology suppliers that could cater to their digital adaptation needs and sustainability goals.
A vision for the future
Looking ahead, digitalization has the potential to become the great change-maker for SMEs. A future in which local producers can reach global markets, small companies can run leaner operations, or small teams can leverage AI to compete with much larger players. With the right strategy and collaborations, SMEs will not just survive the triple transition, but they will be able to thrive, proving that innovation is at their core.
The journey is ongoing, but one thing is clear: digitalization is not just reshaping SMEs, it’s reshaping every thread of the fashion industry and SMEs have a spot in the front row.