Knowledge Inheritance and Digital Transformation in Small and Medium-Sized Enterprises

Abstract

SMEs (Small and medium-sized enterprises) in Japan make up 99.7% of all companies, supporting the backbone of the Japanese economy. However, compared to large corporations, they lag behind in systemization and documentation.

In this paper, we consider the inheritance of knowledge and DX as essential for the survival and growth of companies, and introduce practical case studies from SMEs. Specifically, we focus on the following three points: (1) activities that continuously utilize traditional techniques to drive development in new businesses; (2) efforts to formalize, share, and visualize the knowledge of craftsmen within the factory; and (3) initiatives to foster an organizational culture that adapts to digitalization.

The inheritance of knowledge and DX for SMEs is not merely about preserving know-how, but a strategy to promote the creation of new value that enables companies to survive and grow. This case presents a concrete example of how this integration can be achieved.