The objective of this study is to develop a digital capability model for Small-Medium Enterprises (SMEs) and use it as a tool to investigate the maturity of digital transformation of SMEs in three traditional business communities: Suci, Rahayu, and Binong in Bandung, Indonesia. The study employs quantitative research methodology and is exploratory in nature. A digital capability model, using the value chain analysis framework, is constructed. The model consists of nine dimensions: organisation or company presence, store presence, support, knowledge management and decision making, marketing and sales, customer relationship, internal communication, ecosystem management, and digital revenue. It is then used to collect data using saturated and random sampling method. Data is later analysed using descriptive-correlational statistical technique in an effort to describe how each variable plays its role in the digital transformation for SMEs. The aggregate of measurement shows overall digital capability maturity index for Kampong Digital Suci, Rahayu, and Binong are 2.62, 3, and 2.36 from the maximum scale of 4 respectively. The results of the measurement suggest that the constructed model of measurement may be overwhelming for the type of companies under investigation.