Digital capabilities in manufacturing SMEs

Abstract

<p>Digital information systems are often seen as a critical source of competitive advantage in manufacturing firms. Markets offer a great variety of information systems for a wide range of purposes. However, firms' abilities to exploit these systems vary, and often it is not the technical features of the system that set the limits for the system's usefulness. The main goal of the study was to find out what kind of strengths and weaknesses manufacturing SMEs have in their digital capabilities and how their capabilities compare with firms in other businesses. To meet this goal, we made 12 evaluations in Finnish companies in South Ostrobothnia area. The DigiMat method was used for the evaluations. The secondary goal was to get feedback on how firms perceive the usability and usefulness of the evaluation method. Results show that the top priorities of development are in the capabilities related to the IT infrastructure and in the renewal and development capabilities although there is variation in their order of importance between different branches of industry. Sales and marketing, and production were also at the front. The least development is needed in HR governance and collaboration. Based on the feedback, the tool helped the personnel from different departments to form a shared understanding of development needs. The results and result visualizations also helped companies to focus their development plans.</p>