In the last chapter, we explored digital transformation—what it is, why it is important, and why so many companies get it wrong. We discovered that a key element to getting it right is understanding your organization's current state in terms of technology, culture, and processes: your digital maturity. This chapter will explore what digital maturity is and why it is crucial you understand yours in order to make the right technology decisions for your company and team.
What is digital maturity?
While digital maturity and digital transformation are related concepts, they are different.
- Digital transformation refers to the process of leveraging digital technologies to change how an organization operates. It involves a reimagining of processes, products, and services to meet the changing needs and expectations of customers in the digital age.
- Digital maturity refers to an organization's ability to effectively leverage digital technologies to achieve its business goals and objectives. It is a measure of how well an organization has integrated digital technology into its operations, processes, and culture and how effectively it uses them to improve efficiencies, customer engagement, and overall business performance.
So, digital transformation is a strategic initiative aimed at fundamentally changing how a company operates, while digital maturity is a measure of how well it is using digital technologies to achieve its goals.
What does a digitally mature company look like
Organizations can improve their digital maturity over time by investing in digital technology, talent, and culture, and by continuously monitoring and improving their digital capabilities.
Here are some of the traits of a digitally mature company that less-mature companies can be working on:
- Strategic vision: It has a clear vision and strategy for leveraging digital technology to achieve its business goals.
- Digital infrastructure: It has a robust and flexible digital infrastructure that enables it to integrate and leverage various digital technologies.
- Customer centricity: It prioritizes the customer experience and uses digital technologies to offer personalized and convenient experiences.
- Data-driven decision making: It uses data and analytics to make informed business decisions and continuously improve its operations.
- Skills and talent: It has a skilled workforce that can use digital technologies effectively and adapt to new technologies and ways of working.
- Agile culture: It has a culture of innovation and experimentation and can adapt quickly to changing market conditions and customer needs.
Digital experience maturity is a broad spectrum, and all companies sit somewhere along it. The traits above are those that we are all striving towards. But before we start planning where we’re heading, it is important to know where we’re at.
Why understanding your digital maturity matters
You’ll remember from our last chapter, that one of the most important elements to successful digital transformation is being able to assess your current state—where your organization currently stands in terms of technology, culture, and processes.
Here’s why digital maturity understanding is so important:
- It ensures your strategy and goals are aligned: It can help you align your digital strategy and goals with your overall business strategy and goals. This helps ensure that your digital transformation efforts are focused on achieving your core business objectives.
- It allows you to benchmark your company against competitors: This can help you identify areas where you’re lagging in terms of digital technology and capabilities.
- It helps you identify key areas for improvement: You are better informed as to how you should invest in digital technologies and talent. This can help you stay competitive, improve efficiency, and enhance the customer experience.
- It informs decision-making: Understanding your digital maturity provides you with valuable insights into your digital strengths and weaknesses. This can inform decision-making around digital investments, talent development, and organizational structure.
Understanding your digital maturity is essential for organizations to develop a comprehensive and effective digital transformation strategy that addresses their specific needs, challenges, and opportunities.
In the next chapter, we’ll explore what steps you should be taking to improve the digital experience maturity of your company.