Assessing digital transformation in SMEs: using the canvas model in China and Indonesia

PurposeThis study aims to assess and analyse the phenomenon of digitalization, which is characterized by the regular emergence of new technologies and their continuous potential for development. It focuses on the selection of technologies that can sustainably enhance efficiency or confer competitive advantages for companies, particularly small- and medium-sized enterprises (SMEs).Design/methodology/approachThis study conducted a survey among 96 SMEs in the manufacturing industry. The survey is based on semi-structured interviews with SME management representatives. The authors then process the collected data by examining the average rate of digital transformation in each block, the mode and the median. The focus was on developments and changes in enterprise digital transformation.FindingsThe process model is a systematic framework for integrating new technologies in businesses, helping identify key technologies for sustainable efficiency and competitive advantage. This paper demonstrates the evolution of digital transformation in different building blocks of the BM Canvas for SMEs in the manufacturing industry. The average digital transformation rate has decreased for the Channels block, whereas other blocks have increased and will continue to grow.Practical implicationsThe findings offer practical insights for SMEs looking to adopt digital transformation strategies. By using the technology evaluation canvas (TEC), businesses can make informed decisions about technology investments, ensuring a strategic approach to digitalization that aligns with their operational goals and capabilities.Originality/valueThis study presents an innovative approach to technology evaluation tailored for SMEs, addressing the challenges of limited resources and the need for strategic digitalization. The integration of the TEC into the process model enhances its applicability and value, providing a unique contribution to the field of business model development and digital transformation.