The Digital Maturity Index (DMI™) -Digital Capabilities Reference Model

Table of Contents (Links)

• Table of Contents (Links)
• Digital Transformation, Change & Improvement (Digital Capabilities)
  • Maturity Reference Models
• Digital Business Capabilities
  • Digital Strategy
  • Digital Workplace
  • Digital Offering
  • Digital Customer Intimacy
  • Digital Operating Model
  • Digital Technology
• Digital Transformation, Change & Improvement Pocketbook TOC
• Additional Information Sources

Digital Transformation, Change & Improvement (Digital Capabilities)

Digital (Technology) Change & Transformation must be driven by the Business, Organisation, Customer and User needs, with a view to achieving some related defined aims and objectives that relate to Improvement & Value. Transformation, Change & Improvement are significantly facilitated by New Technology & Technology Professionals.

Digital (Technology) includes existing, new and emerging technologies, applied to any aspect of an Organisations activities, from simple Office Productivity Tools to sophisticated AI enabled Automation Networks, and their related data and Information which is exploited to create value and advantage at any level: Task, Process, System, Eco-System etc.

The pace and nature of the emergence of new technologies and new technology applications will continue to accelerate, as will the volume of related Buzz Words and Acronyms. What will not change is the importance for all organisations to maintain awareness of existing and emerging technologies, and their potential impact on Business, Organisations, Teams, Activities, Roles and Skills, in order to be able to assess and adopt those technologies that have value for their stakeholders and stakeholder entities.

Success or Failure in achieving the Organisations Goals for Digital Business Changes are determined by having in place the right Digital Capabilities, at a right Level of Maturity at the right Time.

Virtually all academic and Industry Analyst research publications over the years confirm that 70% of Change initiatives fail to meet their original objectives, despite advances in our understanding of Change & Change Management, and this applies equally to Digital Transformation & Change.

New organisation science research insights have deepened our understanding of how organisations learn, change and adapt as human systems, which function in much more dynamic and sophisticated environments and ecosystems. These insights produced Unitary Developmental Theory (UDT) and its application for Individuals, Teams and Organisations is enabled through the Organisation Capability Maturity Framework (OrgCMF™) and its Maturity Reference Models.

Maturity Reference Models

Body of Knowledge (BoK)

There are five key traits the ‘Reference Model - Body of Knowledge’ should have.

1. Completeness: Comprehensively reflects latest knowledge and understanding in the domain. List all key Capabilities and their respective Development paths

2. Integrity: Independent, cohesive, honest, and accurate. Based on Scientific Research and proven Theory when describing each normative Maturity Level Traits and Change action guidance for each Capability.

3. Accessibility: Easy to find, review and understand. Ideally self-service and on-line.

4. Usability: Easy to navigate, search, choose, use and be informed. Transparent as regards the understanding, and application of the Theory and its Rules.

5. Usefulness: Quickly answers the questions, guides decisions and actions, and experience the benefits of using it.

Assessment (Measurement)

Reference Model based Capability Maturity Assessment is a powerful tool for Organisations, Teams and Individuals if used correctly. There are Four key questions that need to be answered before deciding the Assessment Strategy.

1. What? would I/We like to know? What are our information needs?

2. Why? What is our intention in acquiring this information?

3. How? will I/We analyse, understand and use what we find out? (The Information)

4. Who? is likely to leverage the information and take the appropriate action?

Assessment Objectives can include some or all of the following:

• Provide answers to Informational Needs (Tactical or Strategic). (Answer the questions in Reference Models & Frameworks, above)

• Identify gaps in Capabilities, shortfalls in Maturities and prioritize development actions calibrated for sustainable traction towards achieving the Outcomes targeted.

• Engage specific people or groups, or everyone in the initiative or a specific phase of the initiative.

• Open or enable a discussion or dialog on a topic or sensitive matter.

• Benchmark internally or externally

• Provide Information to move individuals and groups through recognised change processes and development patterns

This short paper introduces one of those Reference Models ‘The Digital Maturity Index’; which identifies all the key Business & Organisation Capabilities, as they relate to an organisation’s adoption and improvement of its investment in technologies as regards performance & value creation. Each ‘Digital Business Capability’ listed complies with the Reference Model Rules as regards its Maturity Development Roadmap. Each Capability can be assessed as regards its current Maturity Level, and the on-line assessment report provides action guidance on specific steps to be taken for each unique capability, calibrated to assure sustainable traction for the improvement desired.

It should be noted that there are specific and detailed Capability Maturity Models that address the whole arena of ‘IT/Technology Management’ mainly focused on and for the technology management function they use descriptive (rather than normative) 5-levels of Maturity for convenience. Some examples include:

• Capability Maturity Model Integration (CMMI)

• IT Capability Maturity Framework (IT-CMF)

• Control Objectives for Information and Related Technology (COBIT)

Digital Business Capabilities

The Digital Maturity Index (DMI) is an OrgCMF™ Maturity Reference Model that describes the Digital effectiveness of an organisation, and how well Digital contributes to the organisation’s performance. The DMI is based on Unitary Developmental Theory (UDT). It outlines the critical Organisation, Team, and Individual Digital Capabilities and their Maturity levels and provides a roadmap for successful Digital Transformation, Change & Performance Improvement.

There are 6 key Macro Capabilities (Dynamics) within the DMI that must be developed to high levels of Maturity (Level 5, 6 & 7) to assure Digital Transformation and Performance ROI.

There are 7 Normative Maturity Levels used in the DMI. OrgCMF™ Reference Models are the only Maturity Models that are underpinned by Management Science Research & Theory, they are normative rather than descriptive and underpinned by the rules of Organisation Development & Learning outlined in UDT.

(General Maturity Level Description-Each Capability has its unique description for each level)

Unitary Developmental Theory (UDT) is a scientific means for understanding and improving Human Systems, such as an Organisation System. It explains how they Function? Why they Perform at a specific Level? The nature of their Culture and the Learning and Development Process.

The OrgCMF™ Reference Models

• The Organisation Maturity Index (OMI)

• The Team Maturity Index (TMI)

• The Digital Maturity Index (DMI)

• The Collaboration Maturity Index (CMI)

Digital Strategy

Digital Strategy involves setting the organisation's goals, determining actions to achieve the goals, and mobilizing resources to execute the actions, often under conditions of uncertainty. A strategy describes how the ends (goals) will be achieved by the means (resources). The Digital Strategy Dynamic relates to where the organisation is going, and how it is going to get there and how technology enables achievement of the organisation's aims and ambitions. (Value Planning)

There are 6 important ‘Construct’ Capabilities identified in the Digital Maturity Index (Reference Model) for the Digital Strategy Dynamic. These should be built to Maturity Level 5 or above on a 7-Level normative Maturity Scale to be competitive.

Digital Business Model (DBM): The net additional economic value for the organisation, created by its effectiveness in leveraging internal and external Digital resources and eco-systems, in providing Offerings to Customers.

Digital Ecosystems Exploitation (DEE): The ability to create, engage, influence and/or control Digital Ecosystems to create value.

Digital Workplace

The Digital Workplace describes how, and where Employees & Stakeholders implement the organisations plans, carry out their roles and activities, engage with technology, stakeholders, teams and ecosystems in the context of a modern technology enabled business. (Value Creation)

There are 6 important ‘Construct’ Capabilities identified in the Digital Maturity Index (Reference Model) for the 'Digital Workplace' that must be built to Maturity Level 5 or above on a 7-Level normative Maturity Scale to be competitive.

User Engagement & Experience (DUE): The effectiveness of Digital user engagement, and the influence the user has on the design and operations of the Digital Workplace.

Attitude towards Change (DAC): The attitude of stakeholders towards Digital Change in the organisation its ecosystems and workplaces.

Digital Offering

There are 6 CSFs for Digital Transformation here we are considering the Digital Offering, it includes the Products & Services the Organisation Provides, how they are Presented, Provisioned and Consumed, as they relate to the use of technology, to create advantage and value. (Value Proposition)

Those Organisations who Create and Manage successful Digital Offerings have High Capability Maturity Levels (Level 5 + on a 7-Level Normative Maturity Scale) for each of the Construct Capabilities listed.

Digital Product Management (DPM): The effectiveness in identification of Customer and Market requirements, and providing Digital solutions that meet or exceed those requirements.

Personalization Agility (DPA): The ability to provide product and services that meet the unique requirements of each customer and market segment.

Digital Customer Intimacy

Digital Customer Intimacy is a critical capability an organisation must build to ensure successful Digital Transformation and subsequent Digital Business Performance. Customer Intimacy reflects the knowledge, trust and confidence that exists between the organisation, its teams and stakeholders, and the customers business, organisation, teams and staff. It explains how effective the organisation is in leveraging knowledge of the Customer and the relationship for the mutual benefit of the Organisation and its Customers. (Value Experience)

There are 6 key ‘Construct Capabilities’ that should be assessed and built to at least Maturity Level 5 or above on a Scientific 7-Level normative Maturity Scale.

Customer Data Management (DCD): The ability to capture, secure and use customer data and information, to deliver enhanced value for some or all stakeholders.

Personalization Experience (DPE): The Customer’s sense of the importance that the organisation cares about, and delivers on their perceived unique needs.

Digital Operating Model

Digital Transformation can radically change the organisations Business & Operating Model. The Operating Model represents the architecture for management effectiveness, in co-ordinating the organisations resources and ecosystems, to create value and advantage for its stakeholders. (Value Structure)

There are 6 important ‘Construct Capabilities’ that must be assessed and built to high maturity levels to exploit new or improved Digital Operating Models.

Supply Chain Management (DSC): The efficiency, effectiveness, reliability & agility in the selection and management of Digital and Technology Suppliers and their performance in enhancing customer value.

Financial Management (DFM): The level of control and flexibility across the organisation enabled by digital access to strong, reliable, up to date, and useful Financial Information.

Digital Technology

Digital Transformation is an organisation and business centred change enabled by Digital Technology: Technology is about the design, selection, deployment, application and management of technology, to achieve Product Leadership, Operational Excellence and/or Customer intimacy. (Value Enabler).

A Critical Success Factor for achieving Target Digital Transformation Outcomes is that across the organisation the stakeholders need to achieve a Maturity Level of 5 or above on a 7-Level Maturity Scale in 6 important ‘Construct Capabilities’ to realize the benefits of any investment in Technology.

Architecture & Standards Management (DAM): The effectiveness in the, design, selection, configuration, integration and operation of technology to meet the needs of the business and enable Agility & Innovation.

Delivery Management (DDM): The ability of the Organisation and its technology functions to predictably deliver high performing, robust and reliable Digital Solutions for Stakeholders.

Digital Transformation, Change & Improvement Pocketbook TOC

Chapter 1: Introduction

In this chapter the Purpose and Context of Digital Transformation and Change are introduced along with introducing the Author and Research Contributors.

Chapter 2: Overview of Digital Transformation & Change

In this chapter, the nature of Digital Change is presented covering the main Challenges, Opportunities and Capability Building.

Chapter 3: Technologies & Buzz words

In this chapter the language of Digital Transformation is presented along with a simple explanation of all the main Technologies, Services & Buzzwords.

Chapter 4: Capability Maturity Management

In this chapter the relevance and importance of Capability Maturity Development in Digital Transformation is explained and Digital Capability Maturity Frameworks introduced.

Chapter 5: Digital Maturity Index

In this chapter the Body of Knowledge and Capability Development paths are fully presented in detail for the six Digital Macro Capabilities (Dynamics)

• Digital Strategy (Value Planning)

• Digital Workplace (Value Creation)

• Digital Offerings (Value Proposition)

• Digital Operating Model (Value Structure)

• Digital Customer Intimacy (Value Source)

• Digital Technology (Value Enabler)

Chapter 6: Assessing Readiness & Progress on the Digital Journey

In this Chapter a process for Assessment and Measurement of an Organisation's or Team's Digital Capability Maturity is introduced and explained.

Chapter 7: Methodology (Approach) for Leading and Managing Digital Change

In this chapters the steps and stages to effectively and successfully manage Digital Transformation & Change are introduced and explained.

Chapter 8: Glossary

In this chapter there is a glossary of terminology for Transformation, Change and Improvement

Additional Information Sources

Get a copy of the New Book ‘Digital Transformation & Improvement Pocketbook’

Sign up for complementary ‘Privileged User’ account on The OrgCMF™ Digital Platform

Capability Maturity Management Glossary