Assess Your Digital Maturity Webinar
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Do You Have the Right Business Strategy for Your Digital Maturity Level? Assessing your digital maturity can unlock further transformation programme funding Digital maturity isn't about having the latest technology Digital maturity should be assessed in the context of your organisation
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Assess Your Digital Maturity Webinar
- 1. How to Assess Your Digital Maturity
- 2. OUR VISION
- 3. AGENDA What is a Digital Maturity Assessment? Why are we interested? 7 Step Process Digital Maturity Assessment Model Business Capabilities Digital Maturity Dimensions Assessment Techniques Scoring Techniques Working with the Assessment Results Questions PRESENTED BY Robert Moores Client Engagement Director rob.moores@fulcrumdigital.com
- 4. Alice asked the Cheshire Cat, who was sitting in a tree, “What road do I take?” The cat asked, “Where do you want to go?” “I don’t know,” Alice answered. “Then,” said the cat, “it really doesn’t matter, does it?” ― Lewis Carroll, Alice's Adventures in Wonderland
- 5. Does your organisation currently assess its digital maturity? Quick Poll YES NO
- 6. Digital Maturity Assessment Digital Maturity Assessment What ? Why ? How ? ? ? ?
- 7. Digital Maturity Dimensions Digital Maturity Change Focus • Digital Strategy & Focus • Governance • Customer Centricity People • Digital Skills • Leadership • Culture Capability Execution • Automation • Experience • Transformation • Innovation Management
- 8. Why … Might A Digital Maturity Assessment Be Useful ? Inform digital strategy development Inform change priorities Highlight threats and opportunities
- 9. How: Digital Maturity Assessment 7 Step Process Awareness & Commitment Design Maturity Model Create Assessment Schedule Assess Digital Maturity Confirm Target Maturity Confirm Current Maturity Generate Actionable Insights 1 2 3 4 5 6 7
- 10. Digital Maturity Assessment Model Capabilities Digital Maturity Dimensions Business Model & Strategy Current & Target Maturity Levels Change Portfolio Insights
- 12. Digital Maturity Dimensions Digital Maturity Change Focus • Digital Strategy & Focus • Governance • Customer Centricity People • Digital Skills • Leadership • Culture Capability Execution • Automation • Experience • Transformation • Innovation Management
- 13. Assessment Techniques One to one meetings Group discussions Journey mapping Questionnaires Service Mapping Observation Participation
- 14. Digital Maturity Assessment Scoring: Rubrics Digital Infant Early Experimenter Digitally Credible Digitally Mature The Innovators Experimenting with and leveraging leading- edge digital technologies to continuously and dynamically adapt in order to create new / additional value, and opportunities in new markets and for new products / services; True omni-channel; Experience as a service Basic online presence for information transactions; Task automation; Systems of Record & Engagement Capabilities mainly supported by silo systems; Manual processes fill the gaps; Increasingly mature process integration; SMAC used in pockets In some areas: Multi-channel services; Data drives services, decisions and personalisation; Agile adoption; Exposing data and functionality in core systems through the use of APIs; Broad adoption of SMAC In all areas: Multi channel services; Data drives services, decisions and personalisation; Agile adoption; API first design; “Digital First” design; Experimenting with new digital business models in discrete markets and / or products / services 1 2 3 4 5
- 15. Digital Maturity Assessment Scoring: Survey Using Likert Scales
- 16. Working with the Assessment Results
- 17. AGENDA What is a Digital Maturity Assessment? Why are we interested? 7 Step Process Digital Maturity Assessment Model Business Capabilities Digital Maturity Dimensions Assessment Techniques Scoring Techniques Working with the Assessment Results Questions PRESENTED BY Robert Moores Client Engagement Director rob.moores@fulcrumdigital.com
- 18. Q & A
Notas do Editor
- Almost every organization we speak to is part way through a digital transformation. For some that’s pretty much old wine in new bottles – where “digital transformation” is just a newer sexier term for “IT upgrades” that gets them the funding they need to do those upgrades. Others do have varying levels of understanding of what digital transformation involves but don’t have a clear vision or goals around digital maturity - and so, after a few platform or foundation type of implementations, they start to run out of steam and revert back to the usual IT change portfolio management process. Like Alice, if we don’t know where are currently are and where we want to get to in terms of digital maturity – then we might as well wander down any path, without a plan, and hope that we get there. And that’s a problem – it’s a missed opportunity to improve our capabilities, create new value, and it doesn’t do the credibility of the IT department any good. Hopefully this webinar will encourage you to take a structured approach to digital transformation, and understand how a digital maturity assessment can assist you in that. There are a couple of things I want to make very clear from the outset: What we’re presenting today is a very light weight and stripped down version of our framework. We have a 2 day course that gets into the full detail of the framework if you are interested … Digital maturity is highly contextual: it will look very different for a steel mill, than for a University, than for a digital product software company. So what we’re presenting here is a high level framework and some insights based on our experience – you need to take this and shape it for your own organisation.
- But before we go any further, let’s have a quick poll… (read slide question) Please write your response into the questions section of the Webinar software; we will provide the % results later in the webinar.
- Digital Maturity Assessment sounds like an easy term to understand, but our experience is that when we get a group of people in a room they all have different ideas about what it means, what it can be used for and how to go about it … so we are going to start by looking at … - “What” do we mean by the term DMA ? “Why” might we be interested in undertaking one ? And “How” might we go about running an assessment ? Let’s start with the term “assessment” – we’re going to measure something – lots of things. But are we clear about what we’re going to measure, what measures we will use, and how we will measure ? Do we want to use that measurement to compare ourselves with other organisations or simply to set an internal baseline. Implicit in any assessment is the notion of “current and target state”: so we will usually want to assess our current level of digital maturity and set a target level for digital maturity. We’ll come back to this later … Next, what do we mean by maturity … ? That’s a bit more straightforward A state that is more advanced, We might consider maturity to be relative or contextual, rather than absolute – in the same way that we might say that someone is mature for their age … But unlike people becoming and remaining more mature, tomorrow’s understanding of digital maturity is going to be different from yesterday’s – what counts as maturity is a moving target, so our assessment model needs to be able to account for that As we will see, the digital maturity of an organisation isn’t based on having a certain set of technologies or even the latest technologies at any point in time, but on the relentless pursuit of creating new value through the use of digital technologies, whatever they are. So ultimately digital maturity isn’t about reaching a destination, it’s about having the right equipment for the journey
- So let’s stay on the theme of “what” and look at what “digital maturity” encompasses. We split this into 3 areas: Change Focus … how we organise and manage for change People … and Capability Execution … how we deliver our capabilities through services We will come back to this in more detail as we walk through the assessment model ---------------------------------------- Digital Strategy & Focus … Digital first, digital by design, digital default – design for digital first then add real-world constraints. Services are still often designed with manual processes based in from the start or simply an online version of a paper process with online forms replacing paper based forms Customer Centricity … This is Service design starts with the customer journey: how to improve it by simplifying, personalising, anticipating etc Governance … Agile, lean, product orientation, empowerment, low bureacracy
- Next we will look at “Why”. I’m not going to spend long on this slide – the takeaway here is to be clear about why you want to undertake a DMA – as with all initiatives starting with the end in mind and working backwards is more likely to result in something that is useful, usable and used, than starting out with a hunch or a good idea ! Do bear in mind that the purpose of the DMA is to inform or even better drive change in your organisation The 3 reasons provided on the slide aren’t mutually exclusive – ideally will they feed each other. In our experience a DMA can be a valuable precursor to developing a digital strategy, because it gets a conversation going, identifies levels of resistance to change, and gets people talking about direction and objectives – so don’t feel that you need to have a digital strategy first You’ll note that we have put “inform” change priorities. It’s important to understand that a DMA won’t tell you what changes you need to make. It will tell you, at best, where you are now and what good looks like. Every organisation has a finite capacity for change – and Boards aren’t usually short of proposals to spend money. What changes you actually make will be what delivers the most value – and making a capability more digitally mature might not be the most pressing issue for the organisation. So it’s best to see the results of the assessment as another lens that informs change and not a mandate for change in itself. As you undertake the assessment design, planning and execution, your knowledge of the threats and opportunities that digital tech brings will increase. That’s because you will be looking closely at the services you offer and the capabilities that underpin them; and at least starting to explore what’s happening in your sector – competitors, new entrants, new ways of engaging with customers and delivering the services you offer .
- We’ve now covered the What and Why – and this is part of the “how” – the process we go through to execute a successful assessment - and that comes down to good planning, having the right resources, getting the commitment to undertaking and acting on the assessment, and having the time to execute all of the steps. We’ve broken that down into 7 steps – the number of steps isn’t that important – the takeaway here is to have a plan; get proper commitment to it and execute on it. If you don’t get the commitment, then you will find that nobody turns up for your workshops, nobody completes your questionnaire and the results of the assessment are filed away to be looked at when the leadership team has the time to do so – which will be never. I’d like to share some tips based on our experience with you here… Firstly you don’t have to assess the digital maturity of your whole organisation in one go. You’re unlikely to get it all right the first time, so piloting it in a part of your organisation first would be prudent – then you can check how well all of the 7 steps went – and start again! Although it’s tempting, don’t use the IT Department for the pilot – the participants are very likely to get too focused on particular technologies. My recommendation would be to find a Product or Service Owner for the pilot The second tip is to get the right level of granularity: If you do a very high level assessment without drilling down into the detail in different areas of the organisation you’re assessment results will be very generic and less actionable. If you get too much into the detail you run the danger of getting bogged down in complex scoring systems, losing momentum and losing sight of the big picture. Again, piloting the assessment will with determining the right level of granularity.
- So having got an understanding of the what, why and at least part of the how of a digital maturity assessment, lets have a look at what in the organisation we will be assessing and some of the tools we might want to use. As we mentioned before the purpose of the DMA is to inform change in your organisation. So at the outset we need to make sure our goals – in terms of our target maturity levels – are aligned with the business model and strategy. A B2B low-cost distributor may have a very different concept of digital maturity than a B2C firm that provides services to high net-worth individuals. So our model links overall business strategy, capabilities, digital maturity dimensions, the current and target maturity levels and the changes that this will inform. If you think of this diagram as a process model, then the business model and strategy are inputs and the outputs are the insights that feed into the change portfolio. I’m going to talk about these in more detail in the following slides.
- Ultimately what we are assessing is the digital maturity of business capabilities, and we’ll use the Digital Maturity Dimensions to break down the capability into elements that we can attach a score to. Which is fine if you are familiar with business capabilities …and a great learning opportunity if you are not.… In essence a business capability refers to the abilities that an organization needs to have – the things that it needs to be able to do - in order to deliver value to its customers or service users. You can see some examples of capabilities in the capability model on the slide. A capability is a logical construct that helps us model and understand our organisation at different levels. As such, capabilities are usually composed of lower-level capabilities. Your assessment can measure digital maturity at a high level or at a lower level and roll it up. We’ll see that in a later slide. Another useful feature of capabilities is that you can use them to provide “focus” for your assessment. To assess every facet of an organisation can be a huge undertaking and capabilities provide a way to split it into more manageable chunks. To assist further with this, capabilities are usually split into groups – in this example, core and differentiating capabilities. We usually say that the focus for core capabilities should be cost reduction and standardization; while for differentiating capabilities the focus is on creating a unique value proposition. This can help with prioritizing the assessment. A capability heat-mapping exercise may also be used to prioritise the capabilities to be assessed. A heat map will for example identify high cost, at risk or poorly performing capabilities depending on its purpose. There are many ways of conceptualizing and modelling capabilities and we would usually work with whatever your organisation uses, as that will be understood already – at least by the leadership team. If you don’t have a capability model then there are many available – some free, some paid for – some generic and some industry or sector specific - some open, some proprietary. Most of the big consultancies and organisations representing sectors have them – for example UCISA in the HE sector. As I’ve stated our assessment model involves assessing the digital maturity of business capabilities. An alternative would be to assess the digital maturity of business services. Business Services implement a configuration of people, systems and processes at a point in time that delivers the value that is inherent in capabilities. As people change, process are improved and systems change, business services change and come and go over time. While focusing on business services can take you a long way in assessing your current digital maturity level - and indeed we do evaluate services for that purpose, there is a risk that it will only take you so far in increasing digital maturity as the focus will be on improving what is already there without ever taking the leap to completely transform how the capability is delivered. Capabilities on the other hand are much more slow-moving, abstract and not specific in their implementation so generally make a better anchor for the assessment.
- Let’s go back to the Digital Maturity Dimensions that we looked at briefly earlier, as these are what we are going to assess the capabilities against. And look at these in a bit more detail… Change Focus … Digital Strategy & Focus … “Digital first”, “digital by design”, “digital by default” – these are standard straplines for a digital strategy, where design we for digital first then add in real-world constraints. It’s still too often the case that we design for the physical world first and digital is almost an afterthought: think of services that are simply an online version of a paper process with online forms replacing paper based forms So the act the your organisation has an articulated digital strategy that puts digital at the heart of everything you do is a strong indicator of digital maturity in this dimension Customer Centricity … This is Service design starts with the customer journey: how to improve it by simplifying, personalising, anticipating etc Governance … Governance gets a high score for digital maturity if change is governed by Agile and lean principles; If there is a Product rather than project orientation, and if employees are empower to make changes with minimal oversight, gates and other bureaucracy ---------------------------------------- Under People…we assess the … …Digital skills of the workforce …The ability of the organisations leaders to set an agenda and direction for digital; and their commitment to and understanding of digital transformation …The actual culture of the organisation in areas such as customer service, risk taking and innovation ---------------------------------------- Under Capability Execution we look at 3 areas: Under automation we have all the basic activities such as removing paper forms, integrating data and workflow Under experience we put all the things that make dealing with our organisation easier and more convenient from the end user / consumers point of view: the ability for users to interact with us through the channel that is convenient for them – multichannel, and our ability to personalise and anticipate that interaction. So if I have to fill a form in to request something, to what extent can that request be managed through a channel other than web or app; and to what extent can I anticipate that request or even negate the need for it. Relevant technologies to look out for here include: Cloud – which allows us to automatically scale without explicit request; an API first approach that allows us to more easily open up multi and omni channel interaction and create new value from existing services; Conversational interfaces – that support self-service and meet customer expectations for a service interface; and predictive analytics for personalisation Finally under true transformation we include using digital to create new disruptive business models and create new value. Platform businesses are the archetypal disruptive business model, although let’s be clear for almost all businesses that is simply not going to happen. What is more realistic is to create new services and reach new markets using digital technologies. A couple of examples of that might be: exposing your distribution system data via an API or digitising physical objects and using that data to enhance or create new services. Note that what is transformative for you might not be for another organisation and what is transformative today will become table stakes tomorrow.
- So we are going to assess the digital maturity of capabilities. There are a range of assessment techniques available to you – from meetings to questionnaires to more ethnographic immersive approaches. It’s not within the scope of this webinar to explore these in detail, but each technique requires skill and experience, and the greater the skill and experience the better will be the assessment that results from its use. So what you will use will depend on what is being assessed, the time available, skill and users preferences. So for example if you are assessing leadership you may want to inspect documents, meet with the leadership team and include some questions in a general questionnaire to staff Obviously the objective here is to get the best quality data you can, with specific examples to back up your assessment. ------------------------------------------------------------------------ The value of the data that you collect is a function of its: Depth: Quality of data collected Breadth: Quantity of data collected Height: Cost of data collected – your time and that of the people you are talking to being the major cost
- The final piece of the jigsaw is actually how to score the assessment …. Yet again what you use depends on the context of your assessment – the time and people available, the level of granularity and so on … So I’m going to illustrate a couple of scoring systems… The first is by using rubrics – and in this example we are assessing the Capability Execution dimensions against a rubric… In the context of a DMA, a rubric is a descriptive guide to assessing the maturity of the organisation. Rubrics have several benefits: They are narrative based and allow some flexibility in their application They are good for developing a high level consensus on what constitutes digital maturity They can be used to scope a more granular scoring system They are relatively quick to develop The downside of rubrics is that they are open to interpretation and so if a team of people are undertaking the assessment there is more scope for different interpretations and as a result inconsistent scoring.
- Another method is to use survey-style statements along with a Likert scale. This is useful, of course, for actual surveys and questionnaires, but can also be used with face to face and ethnographic assessment techniques. The statement describes the highest level of digital maturity for the dimension under inspection, and the responses – from Strongly Disagree to Strongly Agree are tagged with a score that enables us to assess the current digital maturity level against the ideal. In the spreadsheet on the side we have multiple statements for a dimension and can assign relative weightings to the responses to derive a composite score for a dimension
- Once the assessment has been completed you can capture the results in a spreadsheet. Again it’s worth stressing that there is no right way to capture the results. Whatever method you use should be based on how you are going to use them. This spreadsheet summarises lower level data collected in other sheets in a way that rolls up assessments of lower level capabilities into the higher levels and ultimately to the whole organisation. A RAG status identifies where there is a discrepancy between the current and target maturity levels. As well as getting a view of the organisation’s digital maturity by capability, we can also analyse maturity by the 3 digital dimensions - and the detail under them, depending on the level that the scoring is undertaken at. Although the assessment does spit out a result that indicates the current level of maturity at capability or organisation level, in some ways that’s the least important thing that you will get from a good assessment initiative. What’s likely to be of even more value is all the things you’ve discovered that you didn’t know , the personal connections that have been made, and hopefully a sense of direction and a grasp of the opportunity.
- 1. What is the best way to get organisation to buy into a “constant work in progress” when it comes to digital maturity? That’s an important question …. Ultimately what is going to determine your success as an organisation is your ability to adapt. We’ve seen that that is reflect in the rubric for the highest level of digital maturity, where an organisation is constantly looking to use digital technologies to create new value through new business models and products, and open up new markets. At a macro or strategic level, constant scanning of the external environment – based on some kind of PESTLE framework – will keep the organisation aware of the threats and opportunities that coming up. Assessment of those threats and opportunities should then translate into demand for internal change. At a micro level, taking a product rather than project based approach to change, and to using agile and lean ways of working, will ensure you get the right focus on improvement, and fast feedback on your products and services that helps make the case for further digital investment. 2. New technologies like RPA or Blockchain come up every now and then. How do I assess if those technologies are right for my organisation specifically? That’s a great question …. I’ll start with the wrong way to assess this! That would be to buy in the tech and the expertise without having at least a high level prima facia business case for using it. So look for relevant use cases in your sector or even better in other sectors. That will inform you what the potential value (benefit over cost) will be. Wherever that use case sits in your organisation you need to find an innovation champion who is really keen to explore the benefits of the technology. Without that business person you will be pushing a rock up a hill all the way, so spend time finding the right person with the right level of authority. If it really is a new technology and you want to move fast then you’ll almost certainly need to engage with a technology partner. Your initial assessment should be some kind of feasibility study followed by a short Proof of Concept. Finally be very clear about what constitutes success for these activities and evaluate hard against those success criteria. 3. How does what my competitors are doing fit into my own assessment? Is it important to be reactive to what they’re doing digitally? Another great question … Clearly if your competitors are ahead of you in terms of digital maturity then wee might think that all else being equal they have a competitive advantage. However that is only true if by using the technology they are creating value. It would be wrong and over-simplifying to assume that that’s going to be the case. So it’s certainly important to be aware of what the competition is doing but that has to be assessed. Being a “fast follower” is a good strategy in terms of mitigating risk while still being able to realise a lot of benefits, so being aware of what your competitors are going should at the very least inform your target maturity level.