Foster strategic orientation in the digital age. A methodic approach for guiding SME to a digital transformation

Abstract

The goal of this paper is to demonstrate the need for a structured framework and instrument to support SME in adjusting their organizational strategy to environmental changes in the digital age. Since SME in particular face many challenges transforming their business, a structured and easy to use approach that takes into account the challenges and opportunities of an SME such as limited resources or high flexibility offer a high potential for success. A framework-based method named Transformation Compass extends previous instruments in including all relevant business aspects of an enterprise such as marketing, processes, change management or innovation and allowing a “thinking outside the box” approach while the impacts of the digital age are seen as digital enabler. Combing the different aspects of an enterprise based on basic principles of business management, the instrument is divided into four main building blocks that are Customer Centricity, Business Models, Operational Excellence and Organizational Excellence. Hence, the Transformation Compass serves as a starting point for strategic discussion and possible reorientation of the company.