If you’ve heard me speak, you’ve heard me say the term “digital transformation.” It’s more than a buzzword; it’s the historic period we are currently experiencing. Digital transformation is creating a revolution in business, industry, and daily life. We are only beginning to understand how our society and our species will appear at the end of this transformation. What we do know is that technology is impacting every component of our civilization; from the way we communicate, to the way we conduct commerce, and ultimately the way we experience the world around us.
Digital tools are no longer just a part of organizations. They are a driving force that the success or failure of each organization hinges on. These tools now influence every aspect of a business. Organizations who can use technology to increase efficiency and reach, augment their team, limit risk, and gain competitive advantage are what we call digitally mature organizations.
Achieving digital maturity is not easy. It takes having a group of leaders that understands and values the importance of technology to move the organization forward. It requires capabilities, systems, and processes that are industry leading. Digital maturity means fully harnessing the power of data in decision-making, developing innovations that are ahead of the market, avoiding the inherent risk that comes along with an increased reliance on technology, fully arming the team with the proper digital tools and the skills to use them, and developing a forward-thinking strategy that will lead the organization to long-term prosperity.
Daunting as the task might be, achieving digital maturity can offer a wealth of advantages for any organization. These include:
Profit Amplification: Profit amplification is accomplished by Increasing efficiency through the lowering of back office costs, improving the ROI of each process and team member, and increasing revenue by maximizing reach.
Technology Halo: You’ve certainly noticed when companies use technology to make your experience better. You’re aware when organizations understand and offer exactly what you need, when they seem to value you more than their competitors do. These are organizations who harness the power of technology to serve their constituents most effectively. This is what we call a technology halo. It’s one reason you will find a Starbucks on every street corner and why Amazon is stealing market share like Yogi Bear does a “pic-i-nic basket.”
Long Term Viability: Relevancy! That’s it. You remain in the narrative. You become that place customers want to frequent, A-players want to work for, vendors and contractors want to work with, and industry peers turn their heads and go, “what’s going on over there? Maybe we should try that.” Plus, you become more scalable, so you’re able to seize an advantage in your industry whether your market is going through a boom, a bust, or something in between.
Some recognizable characteristics you’d see by becoming a digitally mature organization include:
High State of Digital Readiness: Thanks to your digital maturity, you’re able to see advantages in the market and pounce.
Rapid Innovation Process: You’re constantly evolving the way you bring products to market, the speed in which you do, and the quality of those products.
High Level of Automation: Technology does the work it can do best; humans do the work they should be doing or only they can do. This balance allows for a more focused workforce, and an organization that is more efficient and effective.
Technology Augmented Relationships: Digital tools offer you the chance to reach out to customers in ways that was previously impossible. Through one-to-one marketing you can speak directly to each individual consumer. This conversation gives you the opportunity to understand what each individual wants from your organization and how you can best fulfill this.
Greater Visibility into the Truth: With data, you can make smarter decisions. However, that’s only if you use data wisely, which means using it to gain insights into your customers, your processes, your workforce, and your productivity. Being strategic about the data you collect and how you mine that data for information while turning that data into knowledge and then finally into wisdom is how you get to the Truth.
Careful Management of Risk: The increased reliance on technology has its rewards, but it doesn’t come without its risks. You must look no further than today’s headlines to witness the havoc a catastrophic data breach can have on an organization or the impact a disaster can have on operations. Mature organizations identify vulnerabilities and swiftly plan remediation accordingly.
A Two-Year Lead on Competitors: Leaders in charge of digitally mature organizations are diligent about looking forward and identifying shifts in the market. These are High Beam leaders; they are not satisfied with just trotting along. They’re constantly finding ways to drive their organizations to be market leading.
The first step to achieving digital maturity is to understand where you currently are. You are only able to gauge your level of maturity by measuring it. We have identified nine dimensions of digital maturity.
Through our Digital Maturity Assessment, we can pinpoint where organizations stand in their pursuit of the lofty achievement of digital maturity. Whether you’re considered The Jetsons or The Flintstones of your industry, this assessment can give you an accurate picture of your current condition and areas that most likely need improvement. Each dimension of the assessment paints a clear representation of the steps that industry leaders are making and gives every organization that takes it an accurate view of its level of maturity along with recommendations for progress. You can visit here for a comprehensive look at our Digital Maturity Assessment.
Your customers expect it, your employees want it, the people you’re looking to hire will only work there if you have it. It’s digital maturity. It will make you stronger, smarter, more profitable, enable you to serve your mission, and even make it more fun to come to work every day. Taking strides toward digital maturity will ultimately have a transformative impact on you.
This article was first published on Scott Klososky’s blog, Technology Story.
A former CEO of three successful tech startup companies and principal at consulting firm Future Point of View, Scott Klososky specializes in seeing beyond the horizon of how technology is changing the world. His unique perspectives on technology, business culture, and the future allow him to travel the globe as an international speaker, consultant, and author, working with senior execs in organizations ranging from the Fortune 500 to universities, nonprofits, and countless professional associations and coalitions.
