Digital maturity model to drive transformation 

We live in a digital age. As such, the importance of digital maturity in the modern business landscape cannot be overstated. As businesses pivot towards digital ecosystems, achieving a high level of digital maturity offers several key advantages:

• Enhanced agility 
  Digitally mature organizations are more agile and responsive to market changes, customer needs, and competitive threats. Correctly implemented, the right technologies can help them quickly identify opportunities and risks, enabling faster decision-making based on reliable data.

• Improved efficiency and productivity 
  For as long as technology has existed, its defining trait has been its ability to give individuals the power to perform more work in less time. Digital maturity applies this truth across entire organizations, streamlining processes, eliminating inefficiencies, and automating routine tasks (thereby boosting productivity). It also paves the way for innovative business models and operational approaches that can further enhance efficiency. 

• Personalized customer experiences 
  Digitally mature groups excel in delivering superior customer experiences. By harnessing the power of data and analytics, these businesses gain valuable insights into customer behavior and preferences, enabling personalized experiences that foster customer loyalty and satisfaction. 

• Innovation and growth 
  Technological advances tend to have a domino effect, catalyzing further innovation and digitalization. By leveraging emerging technologies, organizations can develop increasingly innovative products, services, and solutions that drive business growth. As a bonus, digitally mature companies are more likely to attract and retain top digital talent—professionals who will apply their expertise towards further innovation. 

While the most immediate dangers of the pandemic look as though they are behind us, the lessons learned from its disruptions remain: In a post-COVID world, digital transformation is more than just a competitive differentiator, it is a vital factor in business survival in the face of the unknown. 

Digital maturity can be best described as the degree to which an organization understands, assimilates, and has the capability to implement the changes required to achieve digital transformation. It is an indicator of an organization's readiness and competence in leveraging digital technologies to optimize operations, drive innovation, and generate value.

“Digital maturity” is a quality that companies should promote in their culture. By comparison, “digital transformation” is more action-focused, encompassing the actual initiatives that must be implemented to remodel existing processes and workflows for a more digitally mature approach to business.

With this in mind, it's worth recognizing that achieving digital transformation is not an end goal; it is not a box an organization checks off as complete, but rather a continuous journey towards improved (but never fully attained) digital maturity. It is about building and cultivating a digital ecosystem that is aligned with the organization's evolving strategic objectives and customer needs. And as with any project, companies need a clear picture of where they currently stand—their current level of digital maturity—before they can effectively move forward toward real digital transformation.

To gain an accurate picture of a company's current digital maturity, organizations rely on a kind of framework known as a digital maturity model (DMM).

A DMM serves as a valuable business tool for understanding and assessing digital maturity levels. This type of framework, leveraging a systematic and data-driven approach, helps to delineate the existing state of an organization's digital capabilities while also offering a roadmap for businesses to define their digital maturity goals more clearly. Used correctly, a DMM facilitates strategic growth planning and provides a yardstick for measuring success.

There exists an array of DMMs that organizations can adopt, each tailored to provide insights into various aspects of a company's digital maturity. While one organization may use a DMM centered around sales and marketing functions, another might implement a model that primarily focuses on service management or IT services. The choice of a DMM largely depends on the organization's specific needs, priorities, and digital transformation objectives.

Among these DMMs, the model developed by Google and Boston Consulting Group stands out for its comprehensive approach. This model primarily emphasizes the central role of data in achieving digital maturity. It asserts that data-driven decision making is a fundamental component of a digitally mature organization, breaking down digital maturity into four stages and charting the relationship between efficiency and effectiveness at each phase. The four progressive stages of digital maturity in the Google/Boston Consulting Group DMM are:

1. Nascent 
Organizations at the nascent stage are at the beginning of their digital journey. They may have implemented some digital initiatives but lack an integrated approach and strategic focus. Nascent organizations characteristically suffer from data silos, lack of data collection or integration, and low trust in data quality. Moving beyond this stage demands leadership buy-in, as well as engagement among teams and departments to improve data quality and connect disparate silos. 

2. Emerging 
Businesses that have started to develop and implement a more cohesive digital strategy may be said to occupy the emerging stage. In this stage, there is increased alignment between digital initiatives and business objectives, though the approach may still be fragmented. An increased focus on integrating and correctly using new technologies while creating a common data language (including KPIs) and developing tech-enhanced strategies can ensure that the emerging digitally mature organization is properly positioned to eventually transition into the next stage. 

3. Connected 
As data is properly shared across departments and effectively employed to produce improved results, organizations enter the connected stage. Organizations in this stage are actively leveraging digital technologies and have a well-defined digital strategy that is closely aligned with their business strategy. Here, integration and cross-functionality become essential; bringing together platforms, tying together online and offline data, and making sure that teams across the entire company can operate in tandem from a single source of truth are primary factors. This not only further emphasizes the need for collaboration but also establishes a clear connection between data and revenue.

4. Multi-moment 
Finally, businesses that have fully integrated digital technologies and capabilities into their operations and strategy can be said to have reached the multi-moment stage. These businesses leverage data and analytics to deliver personalized, multi-moment experiences that drive customer satisfaction and business growth across all departments, channels, and touchpoints. Businesses that reach this stage must continue to make incremental improvements in terms of technological efficiencies and always strive to create a single, holistic view of their online and offline data.

As previously stated, the Google/Boston Consulting Group DMM is not the only framework currently in use. Digital maturity models generally fall into one of three categories, with some overlap between them in terms of what kind of organization or business model they are designed to address. 

The three types of DMM are:  

1. Generic DMM 
This type of DMM adopts a universal approach, tracing a general progression of maturity across various domains. It is a flexible model that can be applied to essentially any maturity aspect of an organization, be it digital maturity, emotional maturity, or otherwise. As such, it is widely applicable across different industries and contexts.

2. Detailed DMM
A step more granular than the generic model, this DMM offers a comprehensive overview of digital maturity by examining multiple facets of an organization. It considers elements such as strategy, operations, people, and processes. While still industry agnostic, this model provides a more nuanced understanding of the organization's digital maturity, making it ideal for businesses looking for a detailed analysis of their digital capabilities and clearer direction on how to improve them.

3. Industry-specific DMM 
The most specialized of the three, this DMM is tailor-made to cater to individual industries. By incorporating industry-specific elements, frameworks, and considerations, it offers a highly targeted evaluation of digital maturity. This model is best suited for organizations operating in industries with unique digital requirements and dynamics.

Although it may seem as though the industry specific DMM is obviously the best choice, the reality is that not every organization needs such a targeted framework. In many cases, a more generic approach may be just as effective. What is important to remember is that regardless of the approach an organization takes, perhaps the most defining factor in DMM success is how well those involved collaborate in identifying business challenges, establishing KPIs, and following through on processes.

Although every organization is different, facing unique challenges and chasing specific goals, the process of applying a DMM to assess digital maturity remains fairly consistent. To create a clear picture of the current state of a company’s digital maturity and how to improve it, consider the following steps: 
 
1. Select the right model 
All DMMs are not created equal—each comes with a unique approach and set of parameters. The choice of DMM should align with the organization's goals, industry norms, and available resources. A pragmatic model that can be used to benchmark digital maturity against is ideal and allows organizations to comprehend where they stand in the digital spectrum relative to their competitors or industry standards. 

2. Identify current and desired states 
Conduct a thorough assessment of the existing digital maturity level, considering aspects such as the company's digital skills, technology infrastructure, data management, and digital strategy. Following this, visualize the desired future state of the organization's digital maturity. What outcomes need to be achieved? Is the goal to enhance the customer experience, improve operational efficiency, ensure better decision-making, or something else? Use these goals as a guide.

3. Create an IT roadmap 
A roadmap acts as the compass guiding the digital transformation journey. This strategic plan should identify any technological gaps hindering the organization's progress towards the desired state. The roadmap also needs to prioritize the initiatives according to their potential impact, feasibility, and alignment with strategic goals. 

4. Define opportunities 
While assessing digital maturity, be sure to pinpoint potential opportunities. These might be areas where new technology could drive significant benefits or where digital process optimization could enhance efficiency. By clearly defining these opportunities, organizations can direct their digital transformation efforts where they will have the most impact. 
 
5. Review current infrastructure 
Incorporating advanced tools such as cloud technologies and automation can significantly boost an organization’s digital capabilities. However, these may require extensive IT infrastructure for seamless integration and optimal performance. Assess the existing infrastructure and its ability to support these technologies, planning for upgrades or enhancements where necessary. 

6. Minimize gaps 
With a comprehensive understanding of the current digital situation, the company can then take its first steps toward enhancing their digital maturity. Weaknesses or other gaps in IT implementation represent opportunities, provided that those gaps can be filled. Consider engaging experts or consulting firms to ensure that the strategies for addressing these weaknesses are in line with the best industry practices.

7. Prioritize cybersecurity 
The adoption of digital technologies invariably increases exposure to cyber threats. From the onset, integrate a comprehensive cybersecurity strategy into the digital transformation plan. This involves identifying potential risks, implementing protective measures, performing regular monitoring, and educating employees about safe digital practices.

8. Involve stakeholders 
The digital transformation journey touches all areas of an organization, and this means that stakeholder involvement is vital. Regular dialogue about the integration of new technologies and current processes will help foster a collaborative environment. Perhaps even more importantly, these stakeholders provide informed, experienced insights into the needs and capabilities of the company. Work closely with these individuals to determine whether current approaches are moving the company towards achieving its objectives. 

In 2022, Bain & Company reported that 70% of organizations are already experiencing significant digital disruption, and 85% expect disruption to maintain this pace or even accelerate over the next five years. The solution lies in a more proactive approach to digital maturity. Irrespective of where organizations currently are on their digital transformation journey, implementing a comprehensive and collaborative digital maturity model will help them better understand their technological situation and where they will need to get to if they wish to promote better customer experiences, improve efficiency and productivity, and fortify themselves against emerging threats to their continuity. 

As technology continues to advance at an unprecedented pace, the ability to adapt and integrate digital innovations into business practices becomes the distinguishing factor between organizations that thrive, and those that falter. The journey towards digital maturity will continue to be challenging, but with a thoughtful approach guided by an effective DMM, organizations can navigate the digital landscape, seize new opportunities, and emerge stronger than ever before.