Digital transformation has become a strategic issue in the development of Small and Medium Enterprises (SMEs) in Indonesia. However, its implementation often does not begin with a comprehensive understanding of business processes. Addressing this challenge, the Operations and Strategy Management Research Group (RG MOS), in collaboration with the Surakarta Chamber of Commerce and Industry (KADIN), launched a community engagement program entitled “Business Process Literacy as the Foundation for Digital Solutions for SMEs” on Wednesday, 20 August 2025, at UNS Inn.

Drs. Yong Dirgiatmo, M.Sc., Ph.D., Head of RG MOS, stated in his remarks that this program is designed to assist SMEs in systematically identifying the structure and requirements of their business processes before adopting digital solutions. Through a research-based and simulation-driven approach, SME participants are equipped with analytical capabilities and foundational skills to formulate targeted digital strategies, rather than simply following trends.

According to Dr. Yong, many SMEs tend to immediately focus on digital tools such as social media, websites, or digital payment methods without first understanding their internal processes. In fact, effective digitalization can only be achieved if it is grounded in process efficiency, clarity of priorities, and accurate identification of real business challenges.

This community engagement program emphasizes that sound digital decision-making must begin with an understanding of business characteristics, including operations management, resources, marketing, finance, and sustainability.

Through an applied research approach, RG MOS introduced analytical methods such as the Analytic Hierarchy Process (AHP) and Step-Laddering Technique to SME participants. These tools are used to identify business process priorities, recognize core problems, and formulate the most relevant and impactful digital solutions. The program, carried out by RG MOS over approximately nine months, began with a one-month field observation to map out the characteristics and fundamental needs of SMEs supported by the Surakarta Chamber of Commerce.

In the following stage, the group conducted a two-month decision-pattern introduction, focusing on analytical tools to understand how SMEs make decisions in facing their business challenges. For the next two months, RG MOS organized workshops and simulations on digitalization decision-making based on actual business processes, equipping SMEs with the skills to develop their own digital strategies. In the sixth month, the group conducted a one-month evaluation to assess the effectiveness of the approach. The final three months were dedicated to preparing the final report and drafting academic publications as outcomes of the program.

In its implementation, RG MOS also opened opportunities for collaboration with other institutions, including information technology teams from the banking sector and relevant financial institutions, to support the adoption of secure and affordable digital solutions. This initiative not only addresses the urgent need for effective digital transformation but also represents a concrete contribution to achieving the Sustainable Development Goals (SDGs).

Through a structured and collaborative applied research approach, this program promotes managerial and digital literacy (SDG 4), strengthens the capacity of small businesses to grow inclusively and sustainably (SDG 8), facilitates technology adoption tailored to real business needs (SDG 9), and fosters synergy between academia, business actors, and entrepreneurial organizations such as KADIN (SDG 17). This initiative forms an important foundation for building a local economic ecosystem that is adaptive, innovative, and capable of addressing the challenges of the digital era through strategies rooted in a deep understanding of business processes.