Digital Transformation of SME's organized by World Resources Webinar and hosted by CCAT, Hong Kong

1. DIGITAL TRANSFORMATION
OF SME’S
PROF. VALENTINA DELLA CORTE & DR. GIOVANNA DEL GAUDIO
UNIVERSITY OF NAPLES FEDERICO II

2. PREMISES
• SMEs tend to suffer the most due to the highly turbulent and
competitive environment in which they operate
• SMEs that make optimal use of information communication
technology (hereafter ICT) can access new market opportunities, gain
new knowledge regarding their customers, and improve new product
development processes more effectively
• Despite the recognition of the importance of e-business
implementation in SMEs, the literature on the link between IT and
business performance remains inconclusive

3. DIGITAL TRANSFORMATION TRENDS 1/2
Vertis, 2020

4. DIGITAL TRANSFORMATION TRENDS 2/2
Vertis, 2020

5. CUSTOMERS AND TECHNOLOGY
Vertis, 2020

6. DEFINITIONS OF DIGITAL
TRANSFORMATION
Author/s Year Definition
Bouwman 2019 Digital transformation is defined as the process that is used to restructure economies, institutions, and society
on a system level
Liere-Netheler et al. 2018 The use of new digital technologies (social media, mobile, analytics or embedded devices) to enable major
business improvements (such as enhancing customer experience, streamlining operations or creating new
business models
Chanias 2017 Extended use of advanced IT, such as analytics, mobile computing, social media, or smart embedded devices,
and the improved use of traditional technologies, such as enterprise resource planning (ERP), to enable major
business improvements.
Clohessy et al. 2017 The changes digital technologies can bring about in a company’s business model, which result in changed
products or organizational structures or automation of processes.
Hess et al. 2016 Digital transformation encompasses the digitization of sales and communication channels, which provide novel
ways to interact and engage with customers, and the digitization of a firm’s offerings (products and services),
which replace or augment physical offerings. Digital transformation also describes the triggering of tactical or
strategic business moves by data-driven insights and the launch of digital business models that allow new ways
to capture value.
Matt. et al 2015 Digital transformation strategy is a blueprint that supports companies in governing the transformations that
arise owing to the integration of digital technologies, as well as in their operations after a transformation.
Westerman et al. 2014 The use of technology to radically improve performance or reach of enterprises.

7. SMALL AND MEDIUM ENTREPREISES: APPROACH
TOWARDS THE DIGITAL TRANSFORMATION
Level1
•Digital awareness
Level 2 • Digital Enquirement
Level 3 •Digital collaboration
Level 4
•Digital trasformation

8. LEVERAGING DIGITAL TECHNOLOGIES TO
UNCOVER NEW PATHS FOR VALUE
CREATION
Digital technologies alone provide little
value to an organization (Kane, 2014). It is
their use within a specific context that
enables a firm to uncover new ways to create
value, consistent with the enduring idea that
organizational change is an emergent
phenomenon (Markus and Robey, 1988). In
this section, we outline these new paths to
value creation and present elements relevant
to unlock the transformative potential of
digital technologies

9. SOCIAL AND RELATIONAL DIMENSIONS OF
DIGITAL TRANSFORMATION IN SMES
Digital transformation (Matt et al.,
2015), SMEs are thus increasingly in
need of professional IT resources as
well as support from socioeconomic
development organisations and
institutions
SMEs need to develop and/or access
strategic technology partnership
capabilities which form a complex
set of capabilities related to:
complementarity; learning and
exploitation; organisational
elements; network, alliance and
partnership, as well as
technological, innovative and
internal expertise
The effective management of IT
financial aspects, their use, and the
changes in value creation and
structures they cause (Matt et al.,
2015), however, requires some
attention be given to relational
(Dyer and Kale, 2007), social (Reich
and Benbasat, 2000), and cognitive
dimensions (Tan and Gallupe,
2006).

10. DIGITAL PLATFORM BASED ON
INNOVATION MANAGEMENT THEORY
Bouwer, 2017
Application &
Data
suppliers
Application &
Data
consumers

11. Systemic
innovation
Sources of
external
knowledge
THEORETICAL FRAMEWORK
At the firm level, innovation can be considered as:
a process of development and change that is directly influenced by the “technological” (product and process) and “non technological”
(marketing and organizational) characteristics of the innovations, by the level of tacitness of knowledge and the capacity to accumulate
know-how within the firm, by the ability to produce creative ideas, and by the degree of appropriability of innovation from external source
CAPABILITY
STREAM
CULTURAL
STREAM
CORPORATE
ENTREPRENEURIAL
STREAM
OPEN
INNOVATION
APPROACH
Product
innovation
Process
innovation
Marketing
innovation
Organizational
innovation
The most common
categorizations are the
innovation types presented
by the Oslo Manual:
(Organisation for Economic Co-
operation and Development,
2005)
Digital transformation

12. INNOVATION AND DIGITAL
TRANSFORMATION IN WINE SMES 1/2
Although there are several studies
focusing on modes of innovation,
for the purpose of this study, there
seems to be appropriate to consider
the sectorial system of innovation
with specific reference to wine
industry

13. INNOVATION AND DIGITAL
TRANSFORMATION IN WINE SMES 1/2

14. RESEARCH METHODOLOGY AND
METHODS FOR DATA COLLECTION
• Deductive research approach
• Exploratory case study – Panel: wine firms operating in Campania
Region
RESEARCH DESIGN
•Firms listed in the register of Campania Region provinces’
Chambers of CommerceSOURCE OF DATA
•Focus groups with three different oenologists and experts of the
Campania Region’s wine industry
• Pilot survey (sample of 20 wine firms)
• CAWI and CATI methods
TOOLS

15. THE EMPIRICAL SETTING:DESCRIPTION
OF THE SAMPLED WINE FIRMS
Description of sampled firms
Respondent’s profile
Sampled firms’ geographical distribution
Population and sample’s geographical distribution
Napoli
16%
Avellino
39%
Benevento
21%
Caserta
15%
Salerno
9%

16. DATA ANALYSIS AND DISCUSSION
Wine firms are able to
implement any level of
innovation
“no innovation” vs. “a little
innovation” and “much
innovation”
Do traditional and terroir-oriented wine firms adopt innovation?
If yes, how do wine firms implement the different dimensions of
innovation?
RQ1
RQ1a

17. DATA ANALYSIS AND DISCUSSION
Wine firms perceive only some
innovation typologies as really
significant
“no innovation” and “a little
innovation” vs. “much innovation”
Do traditional and terroir-oriented wine firms adopt innovation?
If yes, how do wine firms implement the different dimensions of
innovation?
RQ1
RQ1a

18. DATA ANALYSIS AND DISCUSSION
Wine firms that implement some
kinds of innovations conceive
these ones as very significant
“a little innovation” vs. “much
innovation”
Do traditional and terroir-oriented wine firms adopt innovation?
If yes, how do wine firms implement the different dimensions of
innovation?
RQ1
RQ1a

19. FINDINGS AND CONCLUSION
The case of the wine industry in Campania Region enables the study of innovation practices,
ranging from technical change and renovation to knowledge acquisition, in a traditional
sector and in a region that has a long-lasting history in the viticulture process and still able
to preserve some degree of competitiveness.
Those firms that implement innovation can de facto be considered as
“big innovators”, since they have a propensity for attributing to the
selected items a remarkable importance.
RQ1
RQ1a

20. Databenc is a high tech district in
cultural heritage, set within the National
Operative Program (PON 2007-2013)
called “Research and Competitiveness”
referring to the line of intervention n.2
“Districts of high technology and related
networks” to whom the feasibility study
of DATABENC is linked.
DIGITAL TRANSFORMATION IN THE
CULTURAL SECTOR

21. In Italy cultural heritage
represents a resource of
inestimable value
There are gaps in Campania
Region’ strategic management
approach of both cultural and
environmental heritage
Fundamental premises 1/2

22. .
Local
resources
can become
factors of
attraction
.
Resources’
Valorization
Fundamental premises 2/2

23. Databenc: the concept
Smart
innovation
Integrated
knowledge
Conservation,
Valorization
and Sustainable
Fruition
Diagnostic
monitoring

24. HOW DIGITAL TRANSFORMATION
SUPPORTS DATABENC

25. DATABENC’SECOSYSTEM
Databenc
46
SMEs
4
big
companies
9
research
centers
4
Universities

26. DATABENC
Commercial
activities
Tourism
sector
Cultural
Heritage
sector

27. Local community
Awareness of the
Community’s role
Tourists
Awareness of the
active role of
tourists
Socially
disadvantaged
classes
Awerness of
socially
disadvantaged
classes’ needs
End-users of Databenc’s offer

28. CONCLUSIONS
• Nowadays, SMES cannot remain unaware of the opportunities offered by both
digitalization and other aspects of innovation
• The digital transformation is accelerating and has implications for all actors concerned,
and especially for entrepreneurs who perceive and understand the situation and its
challenges in multiple ways
• The growing universe of IT applications of all kinds, including existing turnkey IT
applications, requires significant efforts on the part of actors generally not equipped to
cope with business, technological and managerial requirements.
• Digital Privacy is one of the biggest issues. Several actors impose controls on technology
companies, we will be seeing more companies finally get serious about privacy and data
security issues in next years.