Digital transformation. It’s a buzzword we often hear, and yet to many companies, the concept remains something of a mystery. There is often a lack of clarity over what this kind of transformation translates to in real terms, and this can cause companies a great deal of anxiety and frustration.
According to a recent study, industries are on average less than 40% digitized, with relatively few organizations having reached the levels of flexibility, process automation, streamlined technology, and data analysis exemplified by a fully digitized company. But here’s the problem: commercial pressures arising from digitization are continuing to rise. Companies that do nothing to improve their digital capabilities can now expect to see a 6% reduction in revenue.
Proof that companies are still struggling to adapt comes in a 2017 report from MIT Sloan, which revealed that only 25% of companies would rate themselves as ‘digitally mature’. This would indicate that the majority of companies are at risk of revenue loss, so digital transformation is becoming a more and more critical part of remaining competitive.
What exactly is ‘digital maturity’?
Digital maturity can be difficult to define, but fundamentally, it is about how well your organization is positioned to make use of, and adapt within, an evolving environment of digital enablers, in order to drive long-term value for the organization.
How do you digitally transform a company?
‘Digital Transformation’ means a lot of different things to different people. Depending on to whom you speak, the use of the term can encompass a multitude of fields, from tactical to strategic.
On the tactical side, it can be used to describe the need to put a specific technology or set of capabilities in place. While such activity may be useful in the short term, it doesn’t necessarily take into consideration how well the organization is positioned to put different capabilities in place in response to future demands and changes. In short, it doesn’t do you much good for your long-term success, and is not a full digital transformation.
On the other end of the spectrum is the strategic way of thinking about digital transformation, and the type we specifically focus on. This is a more holistic approach, as it aims to increase your organization’s level of digital maturity through a transformational effort that goes beyond a single implementation. This helps prepare your organization to excel within tomorrow’s marketplace.
How to increase your digital maturity
True digitization is much more than just introducing technology. At Aspirant, we measure digital maturity across seven different dimensions: