Management Strategy for Optimizing Worker Wage Management through SDLC-Based Digital Transformation in Dodol Garut MSMEs

E-ISSN : 2807-9035 Volume 5, Number 1, May 2025 https://doi.org/10.47709/brilliance.v5i1.5833 Management Strategy for Optimizing Worker Wage Management through SDLCBased Digital Transformation in Dodol Garut MSMEs Yesti Siti Nurjanah1*, Reny Sumarni2, Zaki Ulfatiatul R3 1,2,3 1 Triguna Tasikmlaya Polytechnic, Indonesia , , *Corresponding Author Article History: Submitted: 27-04-2025 Accepted: 09-05-2025 Published: 26-05-2025 Keywords: Wage Management; Daily Workers; Digital Transformation; SDLC; MSMEs. Brilliance: Research of Artificial Intelligence is licensed under a Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0). ABSTRACT The wage management of daily workers in Micro, Small, and Medium Enterprises (MSMEs) often faces challenges due to manual record-keeping systems that are vulnerable to inaccuracies and delayed payments. This study aims to develop a digital wage management system using the System Development Life Cycle (SDLC) framework and to explore effective managerial strategies for optimizing payroll processes through digital transformation, with a case study at MSME PD. Intan Bestari. A qualitative descriptive approach was employed, incorporating data collection methods such as in-depth interviews, direct observation, and documentation analysis. The system development followed six structured SDLC phases: planning, analysis, design, implementation, testing, and maintenance. The research findings reveal that the developed system effectively automates various components of wage management, including employee attendance tracking, production output recording, wage calculation, and worker loan administration. The management strategies applied to support this system include an Operational Efficiency Strategy, which emphasizes process automation, standardization of administrative procedures, and centralized data handling to enhance accuracy and speed. Furthermore, a Digital Transformation Strategy was implemented by adopting SDLC-based technological solutions, ensuring system flexibility (agility), and enabling cross-functional integration between payroll, production, and procurement units. The implementation of this integrated digital system has significantly improved operational efficiency, reduced errors in data processing, accelerated wage disbursement, and enhanced transparency in wage administration at PD. Intan Bestari. This study offers valuable insights for MSMEs seeking to modernize their wage management practices, highlighting the critical role of strategic management in successful digital transformation. INTRODUCTION Digital transformation has become a fundamental pillar in enhancing operational efficiency and effectiveness across various sectors, including wage management (Salim et al., 2021). In the context of management, digital transformation is not merely the adoption of new technology but an integral part of management strategies to optimize business processes (Rosari et al., 2024). An effective management strategy integrates digital technology into payroll systems to create a more transparent, faster, and more accurate process. One of the approaches used is the System Development Life Cycle (SDLC), which provides a structured framework for designing, developing, and implementing digital wage management systems (Muhammad Anis Alatas & Erlangga Triantara Putra, 2024). However, in practice, the management of daily wages in Micro, Small, and Medium Enterprises (MSMEs) still faces various challenges. Many MSMEs continue to rely on manual processes, which are prone to miscalculations, payment delays, and a lack of transparency in wage record-keeping (Bolanle & Olabiyi, 2024). These issues negatively impact the operational efficiency of businesses and reduce worker satisfaction levels. Additionally, the inability to manage wage data properly can affect strategic managerial decision-making (Mohd Pajri, 2024). The urgency to address these challenges is increasing, given the crucial role of MSMEs as the backbone of the economy in many countries, including Indonesia. Implementing a management strategy based on digital transformation in daily wage management not only aims to improve efficiency but also ensures business sustainability in the digital era (Mohd Pajri, 2024). The use of an SDLC-based information system enables MSMEs to manage wages more effectively, reduce the risk of errors, and enhance accountability in human resource management (Sinta Kurnia & Syamsul Arifin, 2023). Several previous studies have examined the implementation of payroll information systems. For example, (Rahayu et al., 2022) investigated the design and development of a web-based attendance and overtime wage calculation system, while Sugihartini et al. (2025) developed a web-based payroll application aimed at improving efficiency and payroll accuracy. Additionally, (Putri & Amroni, 2020) analyzed an accrual-based payroll calculation system, which significantly reduced manual calculation errors. These studies demonstrate the benefits of digitalization; This is an Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. 125 E-ISSN : 2807-9035 Volume 5, Number 1, May 2025 https://doi.org/10.47709/brilliance.v5i1.5833 however, they remain limited to the technical aspects and do not comprehensively explore management strategies. The research gap identified from previous studies is the lack of focus on integrating management strategies with SDLC-based digital transformation in the context of daily wage management in MSMEs. The novelty of this research lies in its strategic approach, which combines managerial and technological aspects to develop a more effective and efficient wage management model. This study not only discusses the development of an information system but also examines how the system serves as part of a management strategy to enhance MSMEs’ operational performance. Based on this background, the research problem is formulated as follows, (Salim et al., 2021) How is the design process of an SDLC-based wage automation system implemented in MSMEs? (Rosari et al., 2024) What are the effective management strategies for optimizing daily wage management through SDLC-based digital transformation in MSMEs? The objectives of this study are to develop and implement a system for applying management strategies that can improve wage management efficiency in MSMEs through digital transformation. The significance of this research is expected to provide both theoretical contributions to the development of strategic management knowledge and practical benefits for MSMEs in enhancing operational and managerial performance in the digital era. LITERATURE REVIEW Management Strategy in MSME Management Management strategy is the process of planning, executing, and evaluating policies designed to achieve organizational goals effectively and efficiently (Fred R David & Forest R. David, 2019). In (...truncated)