Rethinking the digital transformation roadmap for SMEs

Abstract— Small and medium-sized enterprises (SMEs) often face significant obstacles in digital transformation (DT) due to fragmented operations, disconnected systems, limited resources, and the lack of execution-ready roadmaps tailored to their operational constraints. This study proposes the IDEAL–ACT model, a dual-domain, modular framework designed to support 1 remains insufficiently addressed: the lack of transformation roadmaps that are executable, scalable, and aligned with the operational realities of SME manufacturing environments [9], [15], [16], [24]. the Widely used digital maturity and Industry 4.0 readiness models—such as RAMI 4.0, the Industrie 4.0 Maturity Index, and IMPULS Readiness Model—provide useful SMEs in progressing from basic workflow digitization toward integrated, data-enabled, and analytics-ready operations. The vertical domain, IDEAL (Identify, Digitize, Establish, Accumulate, Learn), focuses on internal process stabilization, workflow digitization, systems integration, data accumulation, and analytical learning. The horizontal domain, ACT (Aggregate, Contextualize, Transform), extends this foundation toward external connectivity, contextual analytics, and future AI-oriented applications. A central premise of the framework is that Cyber Physical Systems (CPS) should not be treated as an initial prerequisite, but as a capability that is progressively developed through structured IT–OT integration. The framework was applied in a mid-sized construction chemicals manufacturer to assess its practical feasibility. The case demonstrated improvements in traceability, synchronization, data continuity, and selected operational performance indicators, while also clarifying the staged nature of analytics adoption. Rather than prescribing technology-first transformation, it provides managers with a sequence aligned with organizational and infrastructure readiness. The IDEAL–ACT model contributes to DT theory and practice by bridging the strategy–execution gap, positioning CPS as an enabling capability for analytics readiness, and emphasizing that, particularly in SME contexts, intelligence should follow integration.