{"id":795426,"date":"2023-12-01T11:31:27","date_gmt":"2023-12-01T11:31:27","guid":{"rendered":"http:\/\/test.daliworks.net\/index.php\/2023\/12\/01\/digital-transformation-plan-en\/"},"modified":"2026-07-28T01:27:11","modified_gmt":"2026-07-28T01:27:11","slug":"digital-transformation-plan-en","status":"publish","type":"post","link":"http:\/\/test.daliworks.net\/index.php\/2023\/12\/01\/digital-transformation-plan-en\/","title":{"rendered":"How to Digitally Transform SME Production Sites"},"content":{"rendered":"

<\/h1>\n
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How to Digitally Transform SME Production Sites<\/span><\/h2>\n<\/blockquote>\n

We recently lived through a period of disruption caused by the COVID-19 virus. In this situation, known as the pandemic, face-to-face activities were restricted to curb the spread of the virus, bringing economic hardship to many countries and the shock of blocked trade between nations. For small and medium-sized enterprises (SMEs), the impact was even greater due to market and supply chain disruptions and the abrupt shift to contactless transactions. Even without disaster-like circumstances, small and medium-sized manufacturers face many difficulties from economic constraints and market uncertainty. Responding to a rapidly changing business environment and diverse customer demands requires proactive change and innovation.<\/span><\/p>\n

This is why digital transformation is essential. Done well, digital transformation helps organizations respond resiliently to rapidly changing environments and crisis situations. For a company, resilience means the flexibility to adapt to disruption and keep operating, and digital technology can serve as the tool with which a company builds that resilience capability. <\/span><\/p>\n

\u200b<\/span><\/p>\n

The State of SME Digital Transformation<\/strong><\/h2>\n

A survey on digital transformation (DX) \u2014 which builds the future competitiveness of SMEs, the backbone of the national economy \u2014 found that 70% of the SMEs surveyed were unaware of its importance (Science and Technology Policy Institute, 2020). As the digital gap with large enterprises widens, problems like this distort the value created by digital transformation and its fair distribution, leave companies behind the curve, and obstruct the virtuous cycle and co-evolution among all economic actors.<\/span>\u200b<\/span><\/p>\n

As of 2021, the informatization level of SMEs stood at 71.52 out of 100, lower than that of large enterprises. Within that, manufacturing scored 69.80, below the SME average, and the digital transformation level was just 16.17 out of 100 \u2014 remarkably low even compared with the informatization level (Ministry of SMEs and Startups and Smart Manufacturing Innovation Promotion Agency, 2022).<\/span><\/p>\n

\u200b<\/span>The SME informatization score of 71.52 surveyed by the Ministry of SMEs and Startups can be understood as referring to digitization. Considering that the digital transformation score of 16.17 represents true digitalization, the unfortunate reality is that Korean SMEs have yet to digitalize their processes and services and are missing opportunities to create new business through customer and partner collaboration.<\/span><\/p>\n

\u200b<\/span>To understand the actual state of SME digital transformation, the SME and Venture Research Division surveyed 500 SMEs (in manufacturing and services) that were either pursuing digital transformation or had not yet started. The results showed that the main focus of digital transformation was organizational management efficiency. 65.0% of respondents said their digital transformation focused on more efficient organizational management, followed by expanding sales channels (15.4%), cost reduction (13.2%), and moving up the value chain (6.4%). In the survey on digital transformation opportunities, companies overall rated work process efficiency (2.72 on a 4-point scale) as the greatest opportunity, followed by productivity improvements such as utilization rates (2.40) and labor cost reduction (2.39). Manufacturers placed relatively greater importance on improving product and service quality.<\/span><\/p>\n

\"\"<\/p>\n

SMEs have relatively little capacity to invest in digital transformation and lack the specialized personnel to drive it. But even amid difficulty, new op<\/span>portunities can be found. The era of the Fourth Industrial Revolution \u2014 defined by hyperconnectivity and hyperintelligence \u2014 is led by digital technologies such as data, artificial intelligence, and the Internet of Things. To respond proactively to these changes, SMEs also need to build and actively execute their own digital transformation plans.<\/p>\n

Digital Transformation Approaches for SMEs<\/h2>\n

There are many digital transformation approaches that SMEs can apply.<\/span><\/p>\n

First, <\/span>data analytics and predictive modeling<\/b><\/span>. By systematically collecting and analyzing the data a company generates, you can identify customer preferences, build targeted marketing strategies, and optimize inventory management. Predictive modeling lets you plan sales volumes and inventory in advance, helping cut costs and improve productivity.<\/span><\/p>\n

Second, <\/span>adopting cloud computing<\/b><\/span>. Cloud services can reduce in-house IT infrastructure costs and the maintenance burden. Moving tasks such as data storage and management and application execution to the cloud improves flexibility and accessibility. To support this, public business-support agencies should actively provide GPU cloud services.<\/span><\/p>\n

Third, <\/span>building a smart factory<\/b><\/span>. This means using artificial intelligence, the Internet of Things, and automation technologies to establish real-time monitoring, automated production processes, and data-driven decision-making systems. It can raise production capacity and reduce unnecessary labor waste. Demand and supply forecasting, equipment failure prediction and solutions, and monitoring of industrial workforce and results all become possible.<\/span><\/p>\n

Fourth, <\/span>adopting collaboration and remote work tools<\/b><\/span>. Digitalizing project management, collaboration, and communication tools improves cooperation between employees and work efficiency. Remote work tools should also be used actively to create a flexible working environment and ensure business continuity.<\/span><\/p>\n

Fifth, <\/span>talent development and strengthening digital capabilities<\/b><\/span>. Focus on developing employees’ digital skills and actively support participation in related training and exchange programs. Working with experts and consulting firms is also a good approach. Prompt engineering is gaining new attention as a way to strengthen interfaces with artificial intelligence.<\/span><\/p>\n

The approaches above are options SMEs can use to put digital transformation into practice. What matters is shaping a customized strategy that fits each SME’s unique situation and requirements. Accumulating digital transformation capabilities will become the foundation of SME survival strategy.<\/span><\/p>\n

A Step-by-Step Guide to Building a Digital Production Site<\/h2>\n

Reducing the number of manual steps in production, improving quality, and using resources more efficiently requires technology \u2014 that is, holistic solutions and networking. And above all, it requires a change in mindset. At first, this change may feel daunting, but once even small steps are underway, it becomes an innovation that is entirely achievable.<\/p>\n

\"\"<\/p>\n

Networking<\/span><\/h4>\n

Connecting the production site through a network improves the current situation and creates opportunities for future production. Networking means not only the technical networking of sensors and actuators on the shop floor, but holistic networking that spans the office and the production site. This provides a holistic view of every process, key metric, and required decision. Holistic networking enables solutions that track CO2 emissions down to the level of individual products.<\/span><\/p>\n

Data Analytics<\/span><\/h4>\n

Once you succeed in moving away from paper-based processes, there is never a shortage of data. What is often lacking is using that data to generate revenue or integrating it into critical processes. When the networking of sensors and actuators succeeds, you gain data that helps intelligently control processes and support preparation and decision-making. From this data you can gather information for uses such as energy efficiency and predictive maintenance. Ultimately, this leads to a better understanding of your processes and lets you optimize setup times and utilization.<\/span><\/p>\n

Using AI<\/span><\/h4>\n

Representative AI applications in manufacturing include machine vision inspection, which uses deep learning to screen out defective products; predictive maintenance, which anticipates equipment or facility failures so they can be serviced in advance; and virtual commissioning \u2014 or digital twins \u2014 which implement real equipment and facilities in a virtual space to reduce trial and error.<\/span><\/p>\n

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It is true that the limited capacity of SMEs \u2014 typically shortages of financial and human resources \u2014 leaves little room to maneuver in the environment of digital transformation. However, advances in digital technology, the evolution of digital service models, and government support policies are helping SMEs move quickly on digital transformation without large upfront investments. Whether it is a smart factory, factory automation, or computerization, the road to digital transformation may feel long \u2014 but now is the time to start, step by step, with what is easiest.<\/p>\n

\u200b<\/span><\/p>\n

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Recommended Reading<\/p>\n<\/blockquote>\n

Learn More About 2024 Smart Factory Support Programs and Vouchers<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

To respond proactively to change, small and medium-sized enterprises also need to build and actively execute their own digital transformation plans.<\/p>\n","protected":false},"author":1,"featured_media":797736,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"uix_meta_title":"","uix_meta_description":"","uix_canonical_url":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-795426","post","type-post","status-publish","format-standard","has-post-thumbnail","category-blog"],"yoast_head":"\nHow to Digitally Transform SME Production Sites - Daliworks<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Digitally Transform SME Production Sites\" \/>\n<meta property=\"og:description\" content=\"To respond proactively to change, small and medium-sized enterprises also need to build and actively execute their own digital transformation plans.\" \/>\n<meta property=\"og:url\" content=\"http:\/\/test.daliworks.net\/index.php\/2023\/12\/01\/digital-transformation-plan-en\/\" \/>\n<meta property=\"og:site_name\" content=\"Daliworks\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-01T11:31:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-28T01:27:11+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/test.daliworks.net\/wp-content\/uploads\/2026\/07\/en-thumb-795426.png\" \/>\n\t<meta property=\"og:image:width\" content=\"960\" \/>\n\t<meta property=\"og:image:height\" content=\"960\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"http:\/\/test.daliworks.net\/index.php\/2023\/12\/01\/digital-transformation-plan-en\/#article\",\"isPartOf\":{\"@id\":\"http:\/\/test.daliworks.net\/index.php\/2023\/12\/01\/digital-transformation-plan-en\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"http:\/\/test.daliworks.net\/#\/schema\/person\/3e27584084cfeed9ca01e2b2c4341bb4\"},\"headline\":\"How to Digitally Transform SME Production Sites\",\"datePublished\":\"2023-12-01T11:31:27+00:00\",\"dateModified\":\"2026-07-28T01:27:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"http:\/\/test.daliworks.net\/index.php\/2023\/12\/01\/digital-transformation-plan-en\/\"},\"wordCount\":1219,\"commentCount\":0,\"image\":{\"@id\":\"http:\/\/test.daliworks.net\/index.php\/2023\/12\/01\/digital-transformation-plan-en\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/test.daliworks.net\/wp-content\/uploads\/2026\/07\/theme-blog-795426.png\",\"articleSection\":[\"Blog\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"http:\/\/test.daliworks.net\/index.php\/2023\/12\/01\/digital-transformation-plan-en\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"http:\/\/test.daliworks.net\/index.php\/2023\/12\/01\/digital-transformation-plan-en\/\",\"url\":\"http:\/\/test.daliworks.net\/index.php\/2023\/12\/01\/digital-transformation-plan-en\/\",\"name\":\"How to Digitally Transform SME Production Sites - 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