Assessing Digital Maturity
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Virtually every contemporary firm has as one of its primary objectives adapting businesses to more digital market situations and using Digital Technology to enhance operations.
Any Change or Transformation program a firm may do is often more difficult than Digital Transformation. Most businesses find it difficult to make the basic adjustments needed for Digital Maturity.
Achieving Digital Maturity, the process by which firms deliberately prepare to continually adapt to ongoing Digital Transformation, is challenging for the majority of enterprises that have jumped on the bandwagon.
The seven-stage Digital Maturity model may be used to assess the Digital Maturity of a company. As shown in the following slide, the organization should be in step 6 (Transform) or phase 7 (Improve) of the model to be considered digitally mature. These two stages combine to make up the “Run” stage of Digital Transformation and maturity.
The technology and KPI-based goals of each phase may be used to identify one from another. By the time a company achieves Digital Maturity, it uses a variety of very sophisticated technology, including Artificial Intelligence, Data Analytics, and Robotic Process Automation.
It takes time to become digitally mature. While time-consuming, it may improve an organization’s chances of surviving and growing.
A small number of companies seem to be making the major changes that their CEOs believe are necessary to accomplishing these goals.
In addition to conducting 15 key informant interviews with CEOs and thought leaders, this research included a survey of 3,500 corporate executives, managers, and analysts from businesses throughout the globe.
By posing questions to business leaders that represented several facets of Digital Maturity, the MIT Sloan Management Review and Deloitte Research performed the study to find firms that were digitally mature.
• The challenge for leaders was to imagine the perfect organization and rate their current company in accordance with that image.
• Questions on the “importance of making business digital and how their firms were moving toward that aim” were posed to executives.
· Participants were also questioned on the fundamentally diverse methods in which their firms use technology to do business.
• The most common roadblocks and mistakes were emphasized in response to a participant question about what their companies should do to improve their Digital Maturity.
• Analyzing the split between enterprise-wide digital initiatives and small-scale digital experiments produced interesting results.
• Organizational structure’s significance for reaching Digital Maturity was also covered in the research study.
• With a focus on cooperation and risk aversion, the relevance of cultural change was also examined.
The objective for leaders was to envision an ideal organization that had been changed by digital technologies and capabilities that improved processes, connected employees throughout the organization, and encouraged new value-generating Business Models.
After that, the respondents were asked to grade their own company on a scale of 1 to 10. These key informant interviews resulted in the following 3 groups:
• Businesses with a level of Digital Maturity known as Early obtained a score between 1 and 3.
• Companies in the digital development stage received scores ranging from 4 to 6.
• Companies deemed to be digitally mature received scores between 7 and 10.
The MIT Sloan Management Review and Deloitte investigation’s first and most crucial question was, “How honestly are organizations trying to become digitally mature?”
Interested in learning more about organizations with Digital Maturity? You can download an editable PowerPoint on Digital Maturity Primer here on the Flevy documents marketplace.
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Digital Transformation is being embraced by organizations of all sizes across most industries. In the Digital Age today, technology creates new opportunities and fundamentally transforms businesses in all aspects — operations, business models, strategies. It not only enables the business, but also drives its growth and can be a source of Competitive Advantage.
For many industries, COVID-19 has accelerated the timeline for Digital Transformation Programs by multiple years. Digital Transformation has become a necessity. Now, to survive in the Low Touch Economy — characterized by social distancing and a minimization of in-person activities — organizations must go digital. This includes offering digital solutions for both employees (e.g., Remote Work, Virtual Teams, Enterprise Cloud, etc.) and customers (e.g., E-commerce, Social Media, Mobile Apps, etc.).
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