OK, maybe we exaggerated - there probably is no one step by step guide to digital transformation. But it’s safe to say that a thorough evaluation of five clearly defined areas can help companies assess readiness based on a digital business innovation (DBI) framework developed by Digital Bridge Partners with SAP. This assessment of the key elements we have observed in successful digital innovation stories serves to identify strengths, weaknesses, gaps, and opportunities on the road to digital transformation.
A framework for success
The DBI framework is a system of assessing the chief information officer (CIO) and IT’s readiness for, and progress along, a digital transformation journey.
The framework consists of four pillars supported by DBI leadership:
- Define a digital strategy to raise awareness, set a direction, and drive decision making
- Apply a best practice organisational innovation model and culture, including agile solution development processes to drive digital business value
- Establish a collaborative and agile IT operating model that allows for incubation of new approaches
- Deliver the right platforms ‒ technical and commercial ‒ to support enterprise-wide transformation and innovation required by digital business model changes
Where should your digital transformation start?
According to the 2015 MIT CISR survey, 32% of company revenues will be under threat of digital disruption by 2020, according to board members. This should create a sense of urgency in any company. But preparing for transformation requires clarity in two areas: a strategy that outlines the scope, depth and size of the change needed to realise your goals, and an assessment of what is required in terms of culture, capacity, leadership, models, and tools.
Many digital maturity assessments exist, but most are quite complex and time consuming, or lead toward a specific vendor’s solution. Alternatively, this assessment was designed to bring quick, clear focus to proven key success factors. The sample assessment questions below are a starting point for the conversations we have with technology leaders across a range of industries, so are necessarily high-level. This approach focuses efforts on the degree to which maturity has been achieved, and strategic next steps rather than simplistic, tactical snapshots of the status quo.
The assessment: leadership
- To what degree do the CIO and IT recognise the importance of leading a digital business innovation agenda?
- To what degree is the CIO a key leader of digital business innovation?
- How mature is IT’s drive of the digital business innovation function and culture?
Digital strategy
- How well defined is the company-wide, CEO and board-driven business transformation agenda?
- To what degree has the company committed to a comprehensive digital strategy that is aligned with your business transformation agenda?
- To what degree does your leadership have a clear portfolio management approach to evaluate the risks and rewards of digital transformation?
Innovation model
- To what degree do business peers look to IT as their co-innovation partner?
- To what degree does your innovation model work enterprise-wide through agile, cross-functional teams working a well-managed portfolio of innovations?
- To what degree is your organisation ahead of competitors in its ability to leverage technology to drive innovation and financial results in both business processes and business models?
IT operations
- To what degree has IT built a roadmap to close its tools and skills gaps between what is required and what is in place today to deliver on your digital strategy?
- To what degree do business teams leverage IT’s tools and skills to drive DBI?
- To what degree does IT blend security, reliability, openness, and agility to support both ongoing operations and innovation work?
Platform
- To what degree does IT have the end-to-end technical and commercial platforms required to facilitate effective digital transformation?
- To what degree does IT have a clear plan for developing the technology platforms (owning or joining industry platforms, big data analytics and APIs) required to facilitate value creation across your entire ecosystem?
- To what degree is your organisation clear about its relationship to the platform business models emerging in your value ecosystem (own, co-develop, join, counter)?
If a far more granular view would be helpful, use SAP’s Digital Innovation and Transformation Assessment.
For more information on Digital Business Innovation and assessing your organisation’s digital readiness, visit Digital Bridge Partners.
Florian Wagner is director, global audience marketing at SAP
This advertisement feature is paid for by SAP, which supports the Guardian Media & Tech Network’s Digital business hub.
