Digital Transformation Framework for SMEs: Integrating Business Analytics for Sustainable Competitive Advantage

Abstract

The rapid evolution of digital technologies has transformed traditional business environments and compelled organizations to redesign operational processes, customer engagement strategies, and business models. Small and Medium Enterprises (SMEs), despite their economic importance, often face difficulties in adopting digital transformation due to limited resources, inadequate digital competencies, and lack of structured implementation models. Business analytics has emerged as a strategic tool that supports digital transformation by enabling data-driven decision-making, predictive analysis, and process optimization. This study proposes a digital transformation framework for SMEs integrating business analytics, artificial intelligence, cloud computing, and organizational capability development. The study identifies major determinants influencing digital transformation success, including leadership support, technological readiness, employee skills, and analytics capability. Findings suggest that SMEs adopting integrated analytics frameworks demonstrate improved operational efficiency, customer satisfaction, innovation, and organizational resilience. The proposed framework aims to guide SMEs in implementing sustainable digital transformation strategies aligned with organizational goals and market requirements.