Digital Maturity: Assessment Model
Technologies are reshaping today’s world. The future that we used to see in Sci-fi movies is maybe closer than ever before. Adapting to increasing digital market environments, to improve operation strategy are very important goals for nearly every contemporary business, but, it’s not easy.
There is no denying that we are standing on the verge of huge disruption, be it new ways of working, be it education or healthcare or any other service or commodity. What’s interesting is companies like Deloitte and Google already knew, this is gonna happen, however, it’s happening way faster than their predictions, thanks to coronavirus AKA Chinese virus.
In 2019, 87% of businesses believed digital technologies will disrupt their Industry and 44 % felt adequately prepared for disruption projected to occur in their industry due to digital trends.
What to do?
To survive in the digital world, businesses must learn to see things differently, do things differently and deliver things differently.
There are a few market forces that drive the digital transformation of business:
1. The emergence of new Ecosystem
2. Reduced ownership of assets and infrastructure
3. Reduced barriers to Digital Entry
4. Decoupled value chains
5. New entrants, expanding the boundaries
Many companies struggle to embark on complex digital transformation journeys. Before you can know where to go you need to understand where you are, this is called Digital Maturity Assessment.
There are many digital maturity assessment models that provide a framework to understand how digitally mature an organization is, and to help build a roadmap for the digital transformation journey. This post discusses Deloitte’s Digital Maturity Model and how the first industry-standard digital maturity assessment tool works.
These 5 dimensions are used to create a survey to assess where the business stands on digital maturity. Mainly these 5 dimensions are further divided into 28 sub-dimensions, which further breakdowns into 179 individual criteria.
- Customer
Providing an experience where customers view the organization as their digital partner using their preferred channels of interaction to control their connected future on and offline.
Sub-dimensions: customer engagement, customer experience, customer insights & behavior, customer trust & perception - Strategy
Focuses on how the business transforms or operates to increase its competitive advantage through digital initiatives; it is embedded within the overall business strategy.
Sub-dimensions: brand management, ecosystem management, finance & investment, market & customer, portfolio, stakeholder management, and strategic management - Technology
Underpins the success of digital strategy by helping to create, process, store, secure, and exchange data to meet the needs of customers at low cost and low overheads.
Sub-dimensions: applications, connected things, data & analytics, delivery governance, network, security, and technology architecture - Operations
Executing and evolving processes and tasks by utilizing digital technologies to drive strategic management and enhance business efficiency and effectiveness.
Sub-dimensions: agile change management, automated resource management, integrated service management, real-time analytics, smart & adaptive process, and standards & automation - Organization and Culture
Defining and developing an organizational culture with governance and talent processes to support progress along the digital maturity curve, and the flexibly to achieve growth and innovation objectives
Sub-dimensions: culture, leadership & governance, organization design and talent management, and workforce enablement
Digital transformation is a journey involving a complex ecosystem of capabilities. The DMM can be used in each phase of transformation to help identify where there are gaps, establish key areas to focus on, and where to start. It does not replace an overarching transformation framework but is meant to serve as a guide and tool to be referred to throughout the process.