The Fourth Industrial Revolution has presented the micro, small, and medium enterprises (MSMEs) with many challenges, especially when investing in digitalization to keep up with the pace of Industry 4.0. Due to limited resources and market information, MSMEs must evaluate their digital investments carefully to remain competitive. To help MSMEs quantify the economic benefits of digitalization, the paper develops a framework consisting of five layers. This framework is applied to seven Italian MSMEs, which were selected based on their well-defined and valuable digitalization interventions that had been evaluated and revised by a panel of experts. The paper makes a significant contribution to the field by offering a framework for assessing the economic feasibility of digital investments in MSMEs. This framework provides a useful tool for MSMEs and professionals to translate the technology impact into quantified elements, both ex ante (when estimating impacts) and ex post (when measuring impacts). The main finding of the work is that the framework is successful in guiding MSMEs step by step in calculating the total value created by their potential investments. Overall, this paper offers valuable insights and practical guidance for MSMEs seeking to invest in digitalization in a cost-effective and informed manner, which can ultimately enhance their competitiveness and growth prospects in the current business landscape.

Development of a framework to evaluate the economic feasibility of digitalization investments in MSMEs

elena coli
;
vito giordano;valerio carannante;gualtiero fantoni;antonella martini
2024-01-01

Abstract

The Fourth Industrial Revolution has presented the micro, small, and medium enterprises (MSMEs) with many challenges, especially when investing in digitalization to keep up with the pace of Industry 4.0. Due to limited resources and market information, MSMEs must evaluate their digital investments carefully to remain competitive. To help MSMEs quantify the economic benefits of digitalization, the paper develops a framework consisting of five layers. This framework is applied to seven Italian MSMEs, which were selected based on their well-defined and valuable digitalization interventions that had been evaluated and revised by a panel of experts. The paper makes a significant contribution to the field by offering a framework for assessing the economic feasibility of digital investments in MSMEs. This framework provides a useful tool for MSMEs and professionals to translate the technology impact into quantified elements, both ex ante (when estimating impacts) and ex post (when measuring impacts). The main finding of the work is that the framework is successful in guiding MSMEs step by step in calculating the total value created by their potential investments. Overall, this paper offers valuable insights and practical guidance for MSMEs seeking to invest in digitalization in a cost-effective and informed manner, which can ultimately enhance their competitiveness and growth prospects in the current business landscape.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11568/1284089
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