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 (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:
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.
Information is siloed and value not leveraged. Data quality and integration issues constrain usage to limited domains.
Product/service/ experience delivery ignores ecosystem needs and opportunities. Marketing focus is unidirectional.
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.
Leadership is skeptical of and lacks vision for DX. Culture is change resistant.
Information value is poorly defined. Structured datawarehousing provides basic analytics. Security is assessed.
Reactive delivery of customer experience. Multidirectional marketing is done on a case-by-case basis.
There are few enterprisewide DX capabilities. Internal DX sourcing with few external competencies.
There are cautious attempts at DX innovation, with fragmented vision. Skunkworks DX projects are allowed but with limited scope.
Information is managed as an asset and intrinsic DX value established. Information includes internal/external sources and all data formats. Security is critical.
Engaged delivery of multidimensional products/services/ experiences. Enterprise-level awareness of ecosystem impact on marketing.
There is broad acceptance of external DX sourcing including internal-external DX team cooperation.
DX vision and goal is to maintain parity. Top-down goal is to transform culture to adopt DX goals.
Information provides competitive DX advantage. Comprehensive information platform includes social, mobile, and IoT with advanced analytics.
Automatic delivery of high-quality digital experiences. Integrated synergistic marketing delivery across the entire ecosystem network.
Organization is focused on rapid DX execution and change. End-to-end talent integration for DX initiatives.
Industry DX leadership — culture and organization mirror continuous evolution of DX vision.
Information is the highest-value DX differentiator. Competitive strength and significant revenue streams are derived from real-time information management.
Self-improving experience delivery disrupts ecosystem behavior. Breakout innovation in the use of DX will transform marketing.
Organizational culture employs anytime-anywhere sourcing for DX. Teams self-organize to achieve results.
Visionary and disruptive DX — ecosystem insight drives vision and organizational goals and projects.
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.