Digital Transformation And Maturity

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When we talk about the "digital transformation" it inherently refers to change in the way businesses have to engage customers to deliver in an entirely new fashion. Increasingly they are expected to provide services-led experiences in terms of the way they engage with products and services. A large part of this is about leveraging the ecosystem to amplify the experience, but most challenging is the associated "business model shift" that all companies embarking on their digital transformation journey will have to undergo. It involves a completely new vision for the company that is cross-domain and impacts every division, but it could take various forms. IDC believes that an organization's ability to make money from any of these business model shifts is directly correlated to its digital maturity across a number of dimensions.

Based on information and data from IDC customers, surveys, public sources of data, and anecdotal evidence gathered by analyst-client interactions, this SAP sponsored iView explores five business model shifts with associated case studies to help demonstrate best practice in digital transformation.

IDC's Digital Transformation Maturity

IDC's Digital Transformation (DX) MaturityScape identifies the stages, dimensions, outcomes, and actions required for businesses to digitally transform their operations, organizations, products, and services. It also serves as a guide for business and technology executives to identify areas in need of improvement in support of digital transformation in five key areas:

  • Leadership
  • Omni-Experience
  • WorkSource
  • Operating Model
  • Information

The IDC DX MaturityScape describes the stages of maturity that a business must achieve in each of those five dimensions, each of which has also been developed as part of this content.

The five maturity stages are ad hoc, opportunistic, repeatable, managed, and optimized. The five dimensions of maturity are information, operating model, omni-experience, worksource, and leadership. Click on a combination of the maturity stage with a dimension for a description of each of IDC's Digital Transformation Maturity Models.

Ad-hoc Opportunistic Repeatable Managed Optimized Data Management,Architecture &Value Creation Processes andStructure Multi-faceted EcosystemEngagement INFORMATION OPERATINGMODEL WORKSOURCE OMNI-EXPERIENCE Work Culture,Talent & Sourcing Business Model Visionand Innovation LEADERSHIP

MATURITY: Ad Hoc

dimension: Information

Information is siloed and value not leveraged. Data quality and integration issues constrain usage to limited domains.

MATURITY: Ad Hoc

dimension: Operating Model

Product-service delivery is not enabled by DX capabilities. IT and operating technology (OT) are uncoordinated.

MATURITY: Ad Hoc

dimension: Omni-Experince

Product/service/ experience delivery ignores ecosystem needs and opportunities. Marketing focus is unidirectional.

MATURITY: Ad Hoc

dimension: Worksource

There is limited visibility into DX talent needs. Time-to-fill is slow; cost-of-hire is high. There are individual islands of DX productivity.

MATURITY: Ad Hoc

dimension: Leadership

Leadership is skeptical of and lacks vision for DX. Culture is change resistant.

MATURITY: Opportunistic

dimension: Information

Information value is poorly defined. Structured datawarehousing provides basic analytics. Security is assessed.

MATURITY: Opportunistic

dimension: Operating Model

Product-service operations data is acquired for local use only. Coordination of standard and DX operations is project based.

MATURITY: Opportunistic

dimension: Omni-Experience

Reactive delivery of customer experience. Multidirectional marketing is done on a case-by-case basis.

MATURITY: Opportunistic

dimension: Worksource

There are few enterprisewide DX capabilities. Internal DX sourcing with few external competencies.

MATURITY: Opportunistic

dimension: Leadership

There are cautious attempts at DX innovation, with fragmented vision. Skunkworks DX projects are allowed but with limited scope.

MATURITY: Repeatable

dimension: Information

Information is managed as an asset and intrinsic DX value established. Information includes internal/external sources and all data formats. Security is critical.

MATURITY: Repeatable

dimension: Operating Model

Common DX operations platforms emerge. Architecture and standards are set to implement best DX practices.

MATURITY: Repeatable

dimension: Omni-Experience

Engaged delivery of multidimensional products/services/ experiences. Enterprise-level awareness of ecosystem impact on marketing.

MATURITY: Repeatable

dimension: Worksource

There is broad acceptance of external DX sourcing including internal-external DX team cooperation.

MATURITY: Repeatable

dimension: Leadership

DX vision and goal is to maintain parity. Top-down goal is to transform culture to adopt DX goals.

MATURITY: Managed

dimension: Information

Information provides competitive DX advantage. Comprehensive information platform includes social, mobile, and IoT with advanced analytics.

MATURITY: Managed

dimension: Operating Model

Product-service DX operations drive new revenue options. IT and OT converge through program office.

MATURITY: Managed

dimension: Omni-Experience

Automatic delivery of high-quality digital experiences. Integrated synergistic marketing delivery across the entire ecosystem network.

MATURITY: Managed

dimension: Worksource

Organization is focused on rapid DX execution and change. End-to-end talent integration for DX initiatives.

MATURITY: Managed

dimension: Leadership

Industry DX leadership — culture and organization mirror continuous evolution of DX vision.

MATURITY: Optimized

dimension: Information

Information is the highest-value DX differentiator. Competitive strength and significant revenue streams are derived from real-time information management.

MATURITY: Optimized

dimension: Operating Model

DX operations are integrated as a core platform for growth. Digital operations group coordinates DX operations.

MATURITY: Optimized

dimension: Omni-Experience

Self-improving experience delivery disrupts ecosystem behavior. Breakout innovation in the use of DX will transform marketing.

MATURITY: Optimized

dimension: Worksource

Organizational culture employs anytime-anywhere sourcing for DX. Teams self-organize to achieve results.

MATURITY: Optimized

dimension: Leadership

Visionary and disruptive DX — ecosystem insight drives vision and organizational goals and projects.

Benchmarking Digital Transformation Maturity — Feedback From Your Peers

Digital Resister Business is a laggard, providing weak customer experiences and using digital technology only to counter threats. Digitally enabled customer experiences and products are inconsistent and poorly integrated. Business provides consistent but not truly innovative products, services, and experiences. Business is a leader in its markets, providing world-class digital products, services, and experiences. Business remakes existing markets and creates new ones to its own advantage and is a fast-moving target for competition. Digital Explorer Digital Player Digital Transformer US Benchmark European Benchmark Digital Disruptor Ad Hoc Opportunistic Repeatable Managed Optimized 14% 20% 32% 34% 33% 28% 14% 12% 8% 5%

IDC's Digital Transformation MaturityScape Benchmark Survey, a U.S. study conducted between February and March 2015, revealed that only 20% of organizations interviewed categorized themselves as being in the advanced stages of digital transformation maturity. The study was repeated in Europe in May 2015 and uncovered that one in five organizations are classified as 'Digital Resisters. This speaks volumes for the growth and untapped potential of digital transformation within organizations.