From Digital Maturity Assessment to Digital Transformation Strategy: Evidence from SMEs in Bosnia and Herzegovina

Abstract

Digital transformation has become one of the key prerequisites for increasing the competitiveness, resilience, and long-term sustainability of small and medium-sized enterprises (SMEs). While European industrial policies increasingly promote the transition towards Industry 5.0, many SMEs in developing economies continue to face significant barriers in adopting advanced digital technologies. This paper presents the results of twenty digital maturity assessments conducted in SMEs operating across different sectors in Bosnia and Herzegovina during the period 2024-2026. The assessments were performed using a structured digital transformation methodology consisting of a digital competitiveness questionnaire, expert workshops, digital maturity assessment, development of a digital transformation strategy, and preparation of a detailed priority digital transformation project. Rather than analysing individual enterprises, the paper identifies common patterns, recurring challenges, and strategic priorities shared among the participating companies. The results reveal that despite differences in industrial sectors, SMEs exhibit remarkably similar digital transformation needs, primarily related to process digitalization, data-driven decision making, systems integration, automation, and workforce digital competencies. The findings provide empirical evidence of the current level of digital readiness of Bosnian SMEs and discuss their implications for the gradual transition towards Industry 5.0.