SMEs (Small and Medium Enterprises) play a vital role in developing countries like Indonesia, contributing 12.85% to the GDP. However, Indonesia ranks low in the Global Index of Digital Entrepreneurship Systems by the Asian Development Bank. A study in Bekasi regency found that nearly 100% of SMEs still rely on conventional systems, facing common issues like low stock accuracy and lack of transparency. While software solutions exist, they often fail to address the real issues SMEs face in the real world. This research aims to create a digital transformation framework tailored to the real issues of SMEs, confirmed by stakeholders. This study used exploratory mixed methods, identifying seven steps for digital transformation: defining customer needs, identifying gaps, setting goals, selecting technology, addressing current problems, planning and financing, and evaluation. These steps cover six dimensions: Customer needs, Processes, Planning and Strategy, Technology, Resources, and Financing. The findings highlight that digital transformation is not just about adopting technology but involves a comprehensive approach grounded in customer needs. This framework offers significant value as a main contribution to academics, practitioners, policymakers, and stakeholders by addressing SMEs’ real-world challenges and ensuring that digital transformation is effective and relevant
