PurposeThe purpose of this paper is to identify the key elements of digitalization for lean and green operations and develop a conceptual framework for their implementation. The paper focuses on small and medium-sized enterprises (SMEs) and aims to explore the role of digitalisation in enhancing their operational efficiency and sustainability. By identifying key factors and metrics related to digitalisation, the paper seeks to provide insights for strategic management to improve lean and green practices in SMEs.Design/methodology/approachInterpretive structural modeling (ISM) and Matrix of Cross-Impact Multiplication Applied to a Classification (MICMAC) approaches were deployed to classify the major dimensions of digitalisation. These methods were used to analyse the direct and indirect relationships among the identified elements of digitalisation. A comprehensive literature review and expert consultations were conducted to identify 13 key elements relevant to lean and green operations. The experts also assisted in determining the contextual relationships between the variables for the ISM model.FindingsThe analysis classified the 13 identified elements of digitalisation into different levels according to their driving power and dependence. The results from the ISM model indicated three levels of classifications. At level-1, Internet of things (IoT) and smart sensors (IoT & SS), automation and robotics directly influence lean and green operations. At level-2, real-time monitoring and control system and at level-3 fundamental elements of digitalisation such as big data analytics, predictive maintenance, cloud computing, energy management systems (EMSs), additive manufacturing, blockchain, digital workflow automation and digital collaboration platform.Originality/valueAll elements are interrelated and essential for making strategic decisions. This study emphasis the significance of prioritising these attributes to attain long-term excellence through digitalisation. For the industries that seek the reward of lean and green operations for their growth, this paper has great practical utility. Identifying the key factors of digitalisation would help strategic managers in handling lean and green environment of SMEs through these aspects.
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