Digital transformation—how a business applies digital technology and digital-enabled processes to remain innovative, competitive and relevant to its customers—is no longer simply a good idea driven by our Internet-driven global economy; it is imperative for survival.
IDC’s latest report Carrier Operations Transformation Imperative in the Digital Era (Feb. 2017) reveals that some 39% of the world’s leading communication service providers have already developed or are implementing a transformation strategy—and barely 8% do not even have a digital transformation strategy.
Business leaders in digitally-centric industries—and today, this notion applies to nearly every industry—therefore face a stark choice: they can either progress through adopting a digital transformation strategy, or regress, simply by standing still. But while the choice to embark on a path towards digital transformation is straightforward, the journey is not. Decision-makers must ask several fundamental questions before taking their first steps, such as:
What are our core business objectives, and how will digital transformation help us achieve them?
What is the current level of my enterprise’s digital infrastructure, skills and capabilities?
How do we prioritize our investment and organizational change activities?
One way business leaders can find answers to these questions is by employing a Maturity Model: an assessment tool which scores the various aspects of an enterprise’s operational and management levels, and identifies areas for improvement. Yet while many such frameworks currently exist, most limit their assessment to an organization’s ‘purely’ digital capabilities—its technology adoption, for instance, or its use of digital channels for customer experience management. A common shortfall of most maturity models is that they fail to incorporate the broader environment in which the organization exists: its strategies, culture, finances and partnership ‘ecosystem’.
The Open ROADS Community has developed a maturity tool which holistically addresses these issues. The Open ROADS Community is a cross-industry organization committed to driving digital transformation for its members through the curation and collection of best practices. To this end, it has developed the Open Digital Maturity Model (ODMM)—the digital business world’s first comprehensive maturity assessment framework.
What is Open Digital Maturity Model?
How does the ODMM help enterprises realize digital transformation?
Step 1 Pre-assessment Preparation
Before carrying out the work, enterprises should articulate the strategic goals they expect to reach in the near future, and assess the challenges and opportunities they expect to encounter in the process of digital transformation. By defining their desired end-state in strategic—rather than simply technological—terms, an enterprise will be able to put their digital transformation activities to work for their revenue, marketing and other broader business objectives.
Step 2 Implementing the assessment
After establishing the enterprise’s digital transformation objectives in terms of its business aspirations, the ODMM tool is used by certified assessors to carefully evaluate an enterprise’s current digital capabilities across six categories, each with multiple dimensions. Once an evaluation score is determined across each, the enterprise can then benchmark itself against the industry best practices, and best-performing enterprises.
Step 3 Setting a path for transformation
Comparing its own digital maturity levels against corresponding benchmarks, enterprises can match their business aspirations, identify their capability gaps, and define an optimal pathway for digital transformation.
The ODMM is not an immutable assessment model:
Under the guidance of Open ROADS Community members, it will evolve iteratively, drawing on new best practices and case study findings from different industries. Community member participation in the assessment process itself means that they ODMM will build an ever-more robust set of data and insight on digital transformation capabilities and practices. The ODMM has six primary assets which distinguish it from other digital transformation assessment tools today:
1. Cross-industry benchmarks:
Aligning the digital transformation practices and capabilities of telcos, finance, and healthcare.
2. Open-sourced and collaborative:
Continuously absorbing ideas from Community contributors, including DT, Orange, Telkom Indonesia, HKT, WPP, STL, and Huawei.
3. Incorporating assessment frameworks of industrial organizations and institutions:
such as MIT, Garner, Forrester, McKinsey, Economist, and WPP.
4. Implementation quality guaranteed through certification:
Specialists have been authenticated, through assessment, by an expert panel of the Open ROADS Community.
5. Future-oriented framework and indicators:
Using prospective vision to help enterprises prepare a digital transformation goal that is adaptable to future trends, rather than that confined to the present.
6. Founded through the Open ROADS Community:
The digital transformation incubation community provides a platform for enterprises to discover business opportunities together with world-leading digital enterprises.
The ODMM is thus a leading-edge tool for digital transformation. Employing it, enterprises achieve transformative business success, whether they are far along their digital transformation process--or have not yet begun.
In forthcoming articles in our digital transformation series, we will be discussing the use of the holistic framework the Digital Mastermind, ROADS principal architecture thinking, and practical case studies.