The five stages of digital maturity: How does your organisation rank?
Catherine Murray, Head of Digital Transformation at Enlight Strategic, discusses the five stages of digital maturity within an organisation.
One of the most common misconceptions about digital transformation is that it’s about the implementation of cutting-edge technologies and IT systems that optimise operational processes. While technology plays an important part, it doesn’t give us the full picture.
Many companies implement new digital tools and platforms only to find that they remain unused or unable to deliver the intended transformative impact due to low digital maturity levels within the organisation.
In fact, research into challenges companies face adjusting to the faster pace of digital business, from MIT Sloane and Deloitte, indicates that digital transformation constitutes a culture and mindset change first. Rethinking technology happens further down the line.
Digital transformation is better defined as a process of adopting new or different business processes and ways of thinking that help an organisation adapt and compete effectively in an increasingly digital world.
This means that companies need to understand how digital affects and can transform all aspects of the business, including leadership, culture and customer experience in addition to technology and operations.
Understanding readiness to transform across these areas is also critical, as differing levels of digital maturity require different approaches – there is no one size fits all solution.
But what is digital maturity and why is it important?
Digital maturity is simply a measure of how ready an organisation is to both understand and adapt consistently to ongoing digital change.
Higher-maturity organisations are nearly three times more likely than lower-maturity organisations to report net profit margins and annual revenue growth that are significantly above the averages in their industry, according to research by Deloitte.
Digital maturity models evaluate how well companies have incorporated digital into their operating models, how effective they are at executing on digital initiatives and their ability to adapt to disruptive technology, events, market trends, competitors or other major factors – both culturally and operationally.
Performing an assessment of an organisation’s digital maturity levels across all aspects of the business is the best place to start a digital transformation journey. It allows you to determine where you’re at in the present, so that you can define where you want to go in the future and how to get there.
What are the 5 stages of digital maturity?
In my experience, organisations fall into one of five broad stages of digital maturity:
1. Traditional: These are companies stuck with legacy systems, processes and outdated ways of thinking. They make little use of digital technologies and lack the ability to drive change across the business. Activities that support digital transformation are usually accidental and not a result of strategic intent. They are likely being disrupted by competition and must act quickly to build a strategic plan and organisation-wide awareness of why digital transformation is critical to save the business.
2. Emerging: These organisations embrace digital slowly and have modernised some aspects of their business but are largely reactive and only make changes when they have to. They are unable to outpace digital disruption. These companies must start addressing digital transformation seriously and avoid creating more legacy issues that will make it difficult to scale and compete in the future.
3. Engaged: These businesses experiment with some critical elements of a winning digital transformation strategy. Limited foundational activities and pockets of innovation are in place, but often siloed and lacking focus or leadership. These companies need a plan for driving adoption of a singular digital vision. Key stakeholders must be engaged to develop a structured and sustainable transformation roadmap that delivers measured business value.
4. Competitive: Companies in this category have a digital roadmap in place and are starting to combat disruption. They compete effectively in the current market but need a strategy for future growth. These companies should start optimising, and address any remaining blockers preventing them from launching and supporting new digital products or services that leapfrog competitors.
5. Maturing: These companies have a well-established transformation roadmap in place that effectively fends off disruption and evolves as needed. They use digital technologies to run their business and have the ability to drive continuous change across the company. These companies must develop a roadmap for continuous transformation and delivery, in order to realise their full potential and become leaders in their industry. Finding ways to remove friction enables them to react swiftly to market trends and speed up delivery of new digital experiences.
I prefer the term “maturing” to “mature”, as the nature of digital requires transformation to be an ever-evolving process without a finite end.
Digitally maturing businesses are always transforming, and never transformed. These organisations constantly move forward on the digital continuum by regularly assessing and adopting new technologies, processes, and strategies.
How do we rate an organisation’s digital maturity?
There are varying digital maturity assessment models, but broadly all involve scoring an organisation’s digital maturity performance across several pillars of the business, including but not limited to: Leadership, Customer, Technology, Operations and Culture.
Analytics and data should be included as a measure of performance within each of these categories as it is critical to the success of any digital transformation programme.
Comprehensive digital maturity assessments typically involve several months of stakeholder interviews, surveys, research and analysis by digital transformation experts immersed within the business.
That’s great, but where do I start?
Start by completing an initial short, high-level online digital maturity assessment. This will provide you with helpful indicators and an initial appraisal of where your organisation stands, which be used to motivate your company to undertake a full audit.
Keep in mind that digital transformation doesn’t happen overnight. It’s a long-term game with gradual progression.
Starting small with one sector of your business or examining one system is also a great way to show proof of concept and test out new ideas.
The pillars of your business that score lowest for digital maturity could be an initial focus for your digital transformation programme, as they are still developing and may require immediate remedial action. Understanding exactly what this means for your organisation and developing a clear action plan is an important first move.
For more information on business topics in the United States, please take a look at the latest edition of Business Chief USA.
G7 Summit guide: What it is and what leaders hope to achieve
Unless you’ve had your head buried in the sand, you’ll have seen the term ‘G7’ plastered all over the Internet this week. We’re going to give you the skinny on exactly what the G7 is and what its purpose on this planet is ─ and whether it’s a good or a bad collaboration.
Who are the G7?
The Group of Seven, or ‘G7’, may sound like a collective of pirate lords from a certain Disney smash-hit, but in reality, it’s a group of the world’s seven largest “advanced” economies ─ the powerhouses of the world, if you like.
The merry band comprises:
- The United Kingdom
- The United States
Historically, Russia was a member of the then-called ‘G8’ but found itself excluded after their ever-so-slightly illegal takeover of Crimea back in 2014.
Since 1977, the European Union has also been involved in some capacity with the G7 Summit. The Union is not recognised as an official member, but gradually, as with all Europe-linked affairs, the Union has integrated itself into the conversation and is now included in all political discussions on the annual summit agenda.
When was the ‘G’ formed?
Back in 1975, when the world was reeling from its very first oil shock and the subsequent financial fallout that came with it, the heads of state and government from six of the leading industrial countries had a face-to-face meeting at the Chateau de Rambouillet to discuss the global economy, its trajectory, and what they could do to address the economic turmoil that reared its ugly head throughout the 70s.
Why does the G7 exist?
At this very first summit ─ the ‘G6’ summit ─, the leaders adopted a 15-point communiqué, the Declaration of Rambouillet, and agreed to continuously meet once a year moving forward to address the problems of the day, with a rotating Presidency. One year later, Canada was welcomed into the fold, and the ‘G6’ became seven and has remained so ever since ─ Russia’s inclusion and exclusion not counted.
The group, as previously mentioned, was born in the looming shadow of a financial crisis, but its purpose is more significant than just economics. When leaders from the group meet, they discuss and exchange ideas on a broad range of issues, including injustice around the world, geopolitical matters, security, and sustainability.
It’s worth noting that, while the G7 may be made up of mighty nations, the bloc is an informal one. So, although it is considered an important annual event, declarations made during the summit are not legally binding. That said, they are still very influential and worth taking note of because it indicates the ambitions and outlines the initiatives of these particularly prominent leading nations.
Where is the 2021 G7 summit?
This year, the summit will be held in the United Kingdom deep in the southwest of England, with Prime Minister Boris Johnson hosting his contemporaries in the quaint Cornish resort of Carbis Bay near St Ives in Cornwall.
What will be discussed this year?
After almost two years of remote communication, this will be the first in-person G7 summit since the novel Coronavirus first took hold of the globe, and Britain wants “leaders to seize the opportunity to build back better from coronavirus, uniting to make the future fairer, greener, and more prosperous.”
The three-day summit, running from Friday to Sunday, will see the seven leaders discussing a whole host of shared challenges, ranging from the pandemic and vaccine development and distribution to the ongoing global fight against climate change through the implementation of sustainable norms and values.
According to the UK government, the attendees will also be taking a look at “ensuring that people everywhere can benefit from open trade, technological change, and scientific discovery.”