Leveraging Digital Transformation And The SMAC Framework To Advance Sdgs

Abstract

Purpose:  To define digital capabilities for SMEs to enable urban and village SMEs to thrive in the digital age, resulting in increased profits and competitive advantage in support of SDGs implementation.
Methodology/approach: This study utilizes qualitative research methods, including literature review on digital transformation and the SMAC concept. The focus is on Micro Enterprises in the Food, Fashion, and Crafts sectors in South Sumatera.

Results/findings: The study defines the dimensions of digital capabilities for SMEs based on the concepts of Digital Transformation and the SMAC concept, namely: Business Model, Knowledge and Innovation, Process and Operation Support, Channel and Marketing and Sales, Customer and User Experience.

Limitations: The limitation of this study is the potential generalizability of the findings, as the research focuses on specific SME sectors and may not fully represent all SMEs.

Contribution: This study offers a roadmap for SMEs in both urban and rural communities with limited digital literacy, empowering them to navigate the digital age. By enhancing their digital capabilities, this research contributes to achieving Sustainable Development Goals No 8 (Decent Work and Economic Growth) by promoting equitable economic development in rural areas. It enables SMEs to leverage digital technologies and participate in the digital economy, fostering inclusive growth in underserved communities.

Novelty: The novelty of this study lies in adapting the concepts of Digital Transformation and the SMAC model to suit the context of SMEs, specifically Micro Enterprises in the Food, Fashion, and Crafts sectors. This Digital Capability concept  contributes to the understanding of digital capabilities for SMEs and offers practical insights for their digital journey with some limitation such as rural area, and simplified understanding of digital capabilities application. Digital Transformation and the SMAC Framework can be pow–erful tools to support the implementation of SDGs. Applying digital technology and leveraging the SMAC framework intelligently can accelerate progress in achieving the proposed goals of sustainable development set forth by the SDGs.