Whether they are aware of it or not, every organisation is at some stage of their Digital Maturity journey. In retail, some businesses may have recently switched to generating online invoices and receipts, while others are working on predicting what you might be thinking of buying at this very moment. Some banks may have digitalised the mortgage application process, while others are building Machine Learning models to identify potential defaulters among applicants using millions of data points. The bottom line is that some organisations are embracing technology to survive, while others are doing so to thrive. And there are still others that are using technology to disrupt the business ecosystem by devising entirely new business models.

The question now is how to take the next step in your own Digital Transformation journey. But before we do that, we need to take a step back and assess our current positioning on that journey. After 12 months of research and speaking to the marketplace, ActionPoint has developed a framework that helps you self-reflect and self-assess before identifying your current state with one of the five levels of digital maturity: Pre-Digital, Digitally Reactive, Digitally Purposeful, Digitally Optimised, and Digitally Strategic. It’s important to understand what each of these levels means.

Digital Maturity Graphic

1. Pre-Digital

While there are various dimensions that feed into the overall category, a Pre-Digital or Level 1 organisation is one that doesn’t recognise Digital as a key ingredient to its success and therefore cannot remain competitive for long.

2. Digitally Reactive

A Digitally Reactive or level 2 organisation, on the other hand, is one that understands that Technology can’t be avoided in today’s business ecosystem. So, they view Digital as a means to remove operational bottlenecks and therefore manage digital initiatives on the go as and when the need arises. 30% of all organisations fall into this category.

 

3. Digitally Purposeful

Digitally Purposeful or level 3 organisations, however, have understood the value that embracing Digital may bring to the business. They have started documenting and budgeting for digital initiatives, but since Digital Transformation is an ongoing process, they may be said to be at the first step in a continuous journey. A further 20% of organisations fall into this category.

4. Digitally Optimised

Digitally Optimised organisations are those that have achieved the best possible value they could by tactically adopting technology to the best of their needs. Leadership teams in Digitally optimised companies make decisions with real world data, have effective and empowered digital departments and respond to customer and market needs quickly. This will result in lower costs, improved efficiency, high employee morale and superior customer experience. The business model, however, is still not fundamentally driven by digital.

5. Digitally Strategic

This is where a Digitally Strategic (Level 5) organisation comes in. These organisations represent the top 5% of all companies and includes many of the unicorn startups that are household names. Apple, Amazon, Google and Facebook have all disrupted their respective markets thinking technology-first to solve everyday consumer challenges. Such organisations have realised that Digital is at the front and centre of everything that modern people do. They have understood that every business is a Technology business and have thus reinvented what incumbents have been doing for decades.

Taking the Next Step

Digital Transformation

The question now is what to do once you have identified yourself at one of the five levels. How to become a Digitally Optimised or even Strategic organisation? Unfortunately, there are no simple answers to this question. There is no button that may be pressed. Rather, it needs a cultural shift in the collective minds of the people.

Well done to you and your team if you believe that you are truly a Digitally Strategic organisation. Keep up the good work and always continue innovating to remain there. However, as per our research, you are most likely a Digitally Purposeful or Digitally Reactive organisation.

There is no shame in this. 50% of all organisations fall into these 2 categories. The goal is to be aware of where you are currently positioned. This information will enable you to plan ahead and out your organisation in a position to embrace digital change.

Take our Digital Maturity Self- Assessment to discover where your organisation is on its Digital journey.

To learn more about ActionPoint’s Digital Transformation Services, click here or email digitaltransformation@actionpoint.ie to speak to a member of our Digital Transformation team.

 

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Contact us today and we can begin discussing your needs. We can quickly provide you with a sense of our approach, estimated costs and a top-level timeframe.

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