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This paper aims to provide insights regarding the state of the art of digital transformation for small- and medium-sized enterprises (SMEs) in Egypt and propose avenues for future research.

A proposed framework for the digitization process in SMEs is developed by providing three layers of working steps toward full automation. The paper also provides an extensive analysis of the main requirements for improving the existing traditional information systems' performance in these enterprises. The challenges of digital transformation and the future research direction are discussed as well.

This paper provided an overview of the importance of digital transformation in real-life applications. The role of the information systems in building a digitalized information processing environment is covered as well. Also, a framework for the shifting process from the traditional approaches to the digitalized systems is proposed. Besides, the paper overviewed the future research directions related to digital transformation in SMEs, especially in Egypt. These research directions are related to technical challenges during the digital transformation process, such as cybersecurity, big data analytics and multimodality data.

Despite the significant governmental and institutions' steps toward full automation and digital transformation, the traditional information systems, infrastructures, and unequipped employees make the digitizing process on-the-fly an open challenge. A technology shift that is not supported by a similar cultural change threatens digital business initiatives and increases the risk of their failure. This paper aims to provide insights regarding the state of the art of digital transformation for SMEs in Egypt and propose avenues for future research.