It is based, predictably, on an analysis of practices (digital tools to manage customer and supplier relationships, collection and use of data for decision making, digitization and integration of business processes), but also on an analysis of the organization’s digital culture -- its capacity to implement change. This can be described as strategy and vision, planning, support from the C-suite, an environment that promotes risk-taking and innovation, and the focus on training and continuous learning.
A quarter of the companies that admit to insufficient and deficient use of digital culture (generally SMEs) have seen their revenues fall in recent years. Conversely, companies with robust digital maturity are rewarded with better financial results. Case in point: according to the Business Development Bank of Canada (BDC), Canadian companies with advanced digital maturity are 62% more likely to experience high sales growth and 52% more likely to see significant growth of profits. Furthermore, these companies are three times more likely to be innovators in their industry.
After studying 400 large companies over time, researchers at the MIT Center for Digital Business concluded that the sustained use of digital technology alone does not make companies more profitable: they also need to better manage these digital assets to gain a real advantage. Research shows that investing in digital technology increases companies’ revenues, but their digital culture and change management are what make the difference in terms of profits.
Why would you evaluate your company’s digital maturity? This type of assessment gives you a sense of how your business measures up to your competitors. It helps you determine your strengths and areas for improvement, and to rank your priorities. It provides a solid foundation for a holistic process of digital transformation that will move your organization forward.