Digital Transformation Process and SMEs

Abstract

The process of digital transformation is a period in which entities, universities, public and employees are transformed and; new business models and business practices are formed. Digital transformation is a functional use of web in design, manufacturing, marketing, selling, promotion and is data-oriented management model. Therefore, capabilities of firms are increased and their processes are improved. Digital technologies are developments regarding smartphones, cloud computing, big data, artificial intelligence, robotics systems, internet of things, 3D printing, virtualization, cyber security, sensor technologies, advanced robotics systems, automation and etc. which all is intensely used in many fields of economic and social life.SME’s consist of 99,83 % total enterprises, and 72,7 % of total employment, 50,6 % of total value added and provide 55,1 % of export, take an important role in economy. They should transform their organizational structures and business making cultures starting from manufacturing technologies to management percepts as to get a productive digital transformation process. The fact that SME’s being able to perform cost-benefit analysis of digital technologies and being aware of that technologies is significant.This paper provides a comprehensive view of the factors affecting digital transformation process and describes the digital transformation of the manufacturing sector in Turkey.The programs and softwares that SMEs can use to perform digital transformation, and can benefit from it, are explained. Empirical studies on SMEs shows that SMEs have erratic behaviors in terms of information and communications technology (ICT) investment and need external support to integrate digital transformations in the overall strategy of the firm.