The first steps on your journey
As the importance of digital transformation in business continues to grow, it becomes even more crucial that companies take the right first step. According to Forbes, 7 out of 8 digital transformation initiatives fail, mainly due to a focus on implementations that only scratch the surface of business operations. Companies need to look deeper into their business model, review the evolving needs of their customers, and determine how to apply digital technologies to improve their value proposition.
But digital transformation isn’t just the successful implementation of a new technology or a new product – it is also about the people and the corporate culture within the organization. The leadership team needs to be digitally savvy and exemplify how this fundamental change can lead to new opportunities and new ways of working, without feeling threatened. Collaboration, information exchange and communication should be facilitated and access to external platforms like social media our apps should be encouraged with clear guidelines and policies in places.
Being a strategist for many years now and having worked with many kinds of companies in different stages of digital maturity, I have learned that is essential to conduct a structured situational analysis as a clear starting point. The current state needs to be defined and gaps or key improvement areas need to be identified.
A great way to trigger this process is to conduct a digital maturity assessment which we recently designed. It is part of our Digital Transformation Health Check , how can a Digital Maturity Tool facilitate the process of analysing the current state of digital transformation within a company and why is it different from other tools?
Digital Maturity Self-Assessment
The Digital Maturity Tool provides an effective way for companies to conduct an ‘As-Is’ self-assessment to understand the current situation in the company, as well as identify gaps or weak points in view of the transformation efforts.
There are six categories in the assessment, designed to cover the core areas required to successfully implement digital transformation across the business value chain:
• Leadership: Do leadership teams have a digital mind-set and are they ready to drive organization-wide transformation efforts?
• People, Culture & Organization: Are employees digitally ready and are teams and culture of the organization aligned to a digital future?
• Customer Centricity: How close is the company to its customers? Are there data-based insights into evolving behaviours and needs, as well as engagement and interaction with customers via digital channels?
• Business Model: How flexible and sustainable is the business model to change or a transformation to its core elements?
• Process & Operations: How deep are core processes integrated, automated and digitized, resulting on improved efficiency and effectiveness?
• Technology: How much is invested in technology and how well is the existing aligned to the overall digital agenda?
Why a health check is necessary for digital transformation
The Digital Maturity Assessment was designed to be versatile, applicable by companies at any stage of the digital transformation journey. For companies at the beginning of the journey or still trying to figure out where to start, the self-assessment highlights clear gaps areas to focus on. For example, a very low maturity in Customer Centricity could mean executives should focus on transformation initiatives that relate to digitalizing customer access points, improving engagement through online channels or utilize digital technologies to gain more insights regarding customer behaviour and preferences.
Conversely, the self-assessment tool offers companies already embarking on their digital transformation journey a great way to take stock of their progress and determine if their planned or implemented initiatives are aligned with the strategic direction.
Another advantage, the tool not only assessed maturity levels across each sub-category for a company, but also offers an average score or benchmark against other companies.
As the categories or dimensions of the assessment tool encompasses critical areas across the entire business value chain, it becomes evident that digital transformation is not just about technology. On the contrary, transformation should be driven top-down and through the entire organization, in order to create a sustainable business returns.
Try the Lardi & Partner Digital Maturity Self-Assessment tool to receive an analysis that describes how companies should proceed with digital transformation.
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