Digital Maturity

Digital maturity is defined as a n organizational indicator describing the width, depth and effectivity in which the organization utilizes digital technology when performing business activities in order to increase competitive advantage. This indicator signifies the organization's status regarding all matters related to applying digital technologies and the skills and abilities required from managers and workers in order to cope with the digital age and their skills regarding implementing innovation, digital business models and innovative digital technologies.

Various organizations have adopted different models in order to examine their level of digital maturity. Hereby are examples of two leading organizations, namely McKenzie and PWC.

McKenzie: Digital Quotient

Similarly to IQ tests, this model provides a summed up score based on 4 categories with each category referring to a number of fields/parameters (a total of 18 fields): strategy; culture; organization; skills. Behind each field, McKenzie has built a thorough questionnaire through which the organization can evaluate each field's respective score. Different weighing of each parameter accumulates to a final score for each category.

 

 

 

 

 

 

מקדם ממוצע – 33

Average coefficient- 33

As part of the digital maturity and model relevance examination process, the company performed a comprehensive survey of 150 companies and evaluated their digital coefficient.  The average coefficient received was 33. Many companies received a score higher than average; a substantial number of companies were scored lower than 33. Companies who scored between 40 to 50 were defined as Emergent Leaders and those who scored above 50 were defined as Established Leaders.

  PWC: the digital IQ model

PWC have identified 5 organizational behaviors which make an organization to one that optimally utilizes digital technologies and attain a digital edge in our digital world:

  1. The CEO serves as digital leader
  2. Strong ties between marketing CEO and information technologies CEO
  3. New approaches; from the outside inwards
  4. Investment in new IT platforms
  5. Referring to digital as an organizational ability

 

The organization has developed a questionnaire including 10 questions through which it can evaluate the organization's digital coefficient. Each question can be answered by either "yes" or "no; each positive answer is worth one point. The total number of points each organization gains serves as their digital coefficient.

In conclusion, it is common knowledge nowadays that incorporating technology and digital tools in the world of KM among others is essential and indicates the organization's ability to adapt to changes and new trends. Many organizations are currently promoting themselves towards this point and have even defined a position of DCO i.e. agents of change utilizing innovation and digitality in order to promote organizational projects.

So, test yourselves. How digitally mature is your organization (based on the PWC model)? Answer the following questions either "yes" or "no":

  • Our CEO leads digital processes
  • Executives responsible for digital issues are involved in formulating and setting digital strategy
  • Digital strategy is coordinated with and authorized by all business units and is backed by senior management
  • Both business and digital strategy are communicated well on all organizational levels
  • The organization cooperates with external parties (suppliers, universities and labs) in order to collect and implement new ideas
  • The organization's channels its investments in digital technologies mainly in order to attain competitive edge
  • The organization uses, utilizes and generates value from the data assets it accumulates and manages
  • The organization is aware of matters concerning privacy and data security and addresses these matters in all its managed projects
  • The organization has a workplan and multi-year roadmap regarding all business processes and required abilities including abilities and components required in the data technologies department
  • The organization consistently evaluates products and profits from investments in digital areas.

 

 

 

 
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