Digital Maturity Matrix – a methodology that puts you in command

Digital Maturity Matrix is a methodology that guides businesses in their digital transformation and clarifies how to work what to do and when to do what. The result? Increased digital competitiveness!

With a high degree of complexity and with many opportunities, it can be difficult to decide where to invest one’s focus and efforts. It is important to navigate past the pitfalls – which do exist. Central to the methodology is how boards, CEOs and management must be able to take command of the digitalization and how the process must have a clear structure, with strong useful advice and recommendations. The methodology supports organizations during their digitalization and helps strengthen existing operations while developing new digital ways of working. The methodology has already been proven and is suitable for small, medium and large corporations.

The methodology helps in:

• including all perspectives on the digital journey,
• creating a common language,
• understanding the company’s road map and its current position (finding the company’s digital position), in order to successfully take direction for the smoothest possible journey towards the chosen position – the company’s digital destination
• allowing CEO and management to take command without being controlling,
• doing the right things and not just doing things right, i.e. focus on digital initiatives in a strategic order and understanding that each step may require considerable effort to be implemented,
• developing the company’s digital investments and thus strengthening existing operations while also generating new business,
• developing a digitally mature business that continuously progresses and where new digital initiatives become an intrinsic part of everyday business, instead of being something daunting or difficult,
• delivering increased benefits from the digital investments made.

Three maturity phases of digital transformation

Our thesis is based on a strong belief that digital maturity boosts a company’s competitiveness. We call it digital competitiveness. Digital maturity develops through three distinct phases: the Mobilization phase, the Coordination phase and the Acceleration phase.

Mobilization phase. This is when you get started, alternatives are tested and resources are mobilized. The initial work is not about detailed planning. Instead the focus should be on creating interest and acceptance of the inevitable need to transform. It’s about clearly communicating why transformation is important. It’s about having a clear vision of where the organization is heading. And it’s about the efforts required to achieve the vision. The digital initiative is small (the little red dot in the figure) and often runs completely separate from the existing operation (the light orange dot in the figures).

Coordination phase. In this phase people achieve a deeper understanding of the company’s digital initiatives. Options have been tested and there is an understanding of which methods will work and which won’t. There is an increased focus on how to execute the digitalization. A comprehensive digitalization strategy is developed and it’s not uncommon to set up a specific unit within the organization with responsibility for the initiatives. The Coordination Phase is the most difficult among the maturity phases. There are high demands on strong leadership as friction often arises between the digital and the existing parts of the organization. The two parts need sound coordination to function well together.

Acceleration phase. As the company transforms and changes its ways of working (the “how”), it becomes easier to understand its offerings and revenue models – the “what”. More of the transformation work can now be focused externally towards the market. This is when the existing and digital strategies merge into one. There is now one vision and one strategy for all operations, whether digital or not.

Nine digital motors

To understand how digital maturity is strengthening a company’s competitiveness we cannot see digital maturity as a whole. It has to be broken down into smaller parts. We divide digital maturity into nine different operational parts, which we call digital drivers. Each and every driver is impacted by digitalization. All nine parts must be included in order to successfully develop the company’s competitiveness. The nine digital motors are: Values, Vision & Mission, Strategy work, Organization, Infrastructure, Processes, Data & Analysis, Value proposition & Revenue models, Touchpoints and Relationships (see the glossary for definitions).

The nine motors span across the company’s business activities. Starting with plans and value statements that fall under Values, Vision & Mission and Strategy work, through to the motors where operational work is carried out and analyzed; Organization, Processes, Infrastructure and Data & Analysis and lastly to the three motors close to markets and customers; Value proposition & Revenue models, Touchpoints and Relationships. Each motors has its own maturity journey. The basis for the methodology is understanding how the motors’ maturity develops, and how the motors interrelate. Once this understanding has been achieved, the company can start to prioritize and coordinate the transformation.

It is critical to optimize digital competitiveness continuously, at each stage of the process. Thus it is important that digital maturity occurs in a particular order among the nine motors. In the Mobilization phase it’s important that Values, Vision & Mission come first, as this motor provides answers to “why” and “where to”. “How” has great focus in the Coordination phase, hence engines dealing with internal operations need maturing (Strategy work, Organization, Processes, Infrastructure and Data & Analysis). Once the organization has adopted new ways of working, it’s time to look at “what” and the focus will automatically be directed to the market (Value proposition & Revenue models, Touchpoints and Relationships).

*Illustrations made by Cecilia Petterson at Pica Pica.