Digital Transformation of MSMEs Based on Smart Financial Management to Increase Business Competitiveness in Medan

Wesly Andri Simanjuntak; Junika Napitupulu; Septony B. Siahaan; Dompak Pasaribu; Rimky Mandala Putra Simanjuntak; Robinhot Gultom; Mulatua Silalahi; Rahel Junita; Elperida Sinurat; Arthur Simanjuntak

doi:10.55927/jpmb.v5i6.48

Authors

Wesly Andri Simanjuntak Universitas Methodist Indonesia
Junika Napitupulu Universitas Methodist Indonesia
Septony B. Siahaan Universitas Methodist Indonesia
Dompak Pasaribu Universitas Methodist Indonesia
Rimky Mandala Putra Simanjuntak Universitas Methodist Indonesia
Robinhot Gultom Universitas Methodist Indonesia
Mulatua Silalahi Universitas Methodist Indonesia
Rahel Junita Universitas Methodist Indonesia
Elperida Sinurat Universitas Methodist Indonesia
Arthur Simanjuntak Universitas Methodist Indonesia

DOI:

https://doi.org/10.55927/jpmb.v5i6.48

Keywords:

MSMEs, Digital Transformation, Smart Financial Management, competitiveness, Medan City

Abstract

This community service program aims to encourage the digital transformation of MSMEs through the implementation of Smart Financial Management to increase business competitiveness in the city of Medan. The main problems identified include the low adoption of digital financial technology, the absence of an application-based financial recording system, the lack of understanding of digital business analytics, and the weak integration between financial management and digital marketing strategies. This program involves 40 MSME actors from various sectors in Medan City who were selected through selection based on digital readiness and business development commitment. The implementation method includes practice-based financial digital transformation training, smart finance application implementation workshops, intensive mentoring for 12 weeks, and the formation of a Medan Digital MSME community ecosystem. The results of the evaluation showed a significant increase: adoption of digital financial applications increased from 8% to 89%, data-driven financial analysis capabilities increased from 12% to 84%, integration of digital marketing and finance increased from 15% to 81%, and overall business competitiveness increased from 21% to 87%. This program has succeeded in creating a sustainable digital MSME ecosystem and has a real impact on increasing the competitiveness of MSMEs in the digital economy era.

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