The Case of Taiwan by Tony Lin, Industry, Science and Technology International Strategy Center (ISTI); ITRI Industrial Technology Research Institute

1. Digital Transformation Framework for SME:
The Case of Taiwan
Tony Lin (CHING-HUNG,LIN)
Researcher
Industry, Science and Technology International Strategy (ISTI),
Industrial Technology Research Institute (ITRI), Taiwan
20210702

2. OUTLINES
• Challenges and Needs of Taiwan SME
• Digital Transformation Frameworks
• Proposal for Taiwan
• Conclusion

3. Challenges and Needs of Taiwan
SME

4. Taiwanese SMEs are still far from “clouds”
Source: IDC. (2020). U.S. Small and Medium-Sized Business: The State of Cloud Adoption.
Cisco & IDC. (2020). 2020 APAC SMB Digital Maturity Study.
61%
15% 13%
未上雲
Taiwan
U.S. APAC Average
Cloud
Adaption
No plan for
Cloud
The State of Cloud Adoption in SMEs
Challenges

5. The challenges of SMEs
Source: Cisco & IDC. (2020). 2020 APAC SMB Digital Maturity Study.
Income growth
is the priority!
Income growth
is the priority!
No money for
Digitalization!
Need more
STEM talents
Challenges

6. The needs of SMEs
Source: ITRI/ISTI Research
Usefulness
The SMEs need a
solution that can
benefit their business
immediately.
Resource
The SMEs usually
have a tight budget
and cannot afford
“trial and error”.
Knowledge
The SMEs usually
have no IT-specific
knowledge.
Challenges

7. A Good Framework Can Help
Source: ITRI/ISTI Research
Usefulness
A good framework
can help SMEs find
their own business
goal and set the
priority.
Resource
A good framework
can help SMEs spend
money on the truly
effective solutions.
Knowledge
A good framework
can narrow down the
problems of SMEs and
solve them step by
step.
Challenges

8. Digital
Transformation
Frameworks
• Singapore
• Japan

9. Singapore: Industry Digital Plans
Framework
Accountancy
Food Services
Retail Sea Transport
Hotel
Construction Early Childhood
Land Transport
Security Training and
Adult Education
Wholesale
Trade
Logistics
Environmental
Services
Media
Food
Manufacturing
Source: Infocomm Media Development Authority, Singapore

10. Framework
Source: Infocomm Media Development Authority, Singapore

11. Japan: IT Strategy for SME
Framework
Strategy
Operation
Action
IT
Solution
Version & Core Value
Turnover Growth Productivity Improvement
Business
Efficiency
CRM SPA SEM SNS
Online
Training
Scheduling
System
ERP RPA
New
Customers
Organization
Improvement
Supply Chain
Improvement
Customer
Data
Analysis
Demand
Forecast
Online
Commerce
Brand
Awareness
Employee
Capability
HR
Managing
Purchase,
Sales,
Inventory
Automation
Source: IT戦略ナビ

12. Japan: SME Digitization Support
Team
Framework
• Uses case study to
help SMEs
understand how
to digitalize
• The “support
team” will be sent
to SMEs to help
Source: IT戦略ナビ

13. Frameworks for Different Purposes
• Singapore: focus on the different capabilities in a
long term planning
• Japan: focus on the support team service, helping
SMEs find their own need.
Framework

14. Proposal for Taiwan

15. Digital transformation frameworks
from big consulting firms
Proposal
Source: ITRI/ISTI Research

16. The New Digital Transformation
Framework for Taiwan SMEs
16
Five Key Areas & Three Steps
Strategy
Customer
Experience
Organization
& Culture
Operation
& Process
Technology
Digitalization
Digital
Optimization
Digital
Transformation
構
面
Improve!
Proposal
Source: ITRI/ISTI Research

17. Conclusion
• Digital transformation frameworks can benefit the
SMEs which usually lack of resource, time, and
capabilities.
• Different frameworks serve different purposes.
• A framework is like a diagnosis certificate. You still
need to see a doctor and take some medicine by
yourself.

18. Thanks!
For more information or discussion,
Pease find: ebsinnccu@gmail.com