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What is Digital Transformation and why is it necessary?


Daniel Shaviit- Partner DMS Partners


As a historical context, we briefly recall the great industrial revolutions from the 19th century onwards:


1. Mechanization, advent of water and steam power. Mid 19th century

2. Mass production, assembly lines, intensive use of electricity. End of

19th century, early 20th century

3. Introduction of industrial automation, through the use of computers in production.

70s of the 20th century

4. Introduction of autonomous systems, through massive use of new technologies (AI,

IoT, 5G). 21st century


We can say that the third revolution brought concepts such as converting products into digital format and innovating business models by exploring digital opportunities.


The digital transformation that begins in the 21st century, however, is a systemic change, with the restructuring of economies, institutions and societies, through the diffusion of technology in practically all areas of knowledge and production.


What is a Digital Maturity model?


A maturity model is a technique already used in several economic segments for some years to gather best global practices, propose evolutionary scales, evaluate the current situation and plan future evolution in a structured way.


The Digital Maturity model used the success of this type of methodology to create a set of best practices that reflect the needs of digital transformation in an organization. The model used by DMS, based on a set of industries gathered in TMForum, evaluates the following areas:


The model allows you to navigate in depth in each organizational area, through analysis by dimensions, sub-dimensions and detailed criteria.


Structured assessment allows you to assess the level of maturity at which a company is

found, as shown in the figure below.


What are the benefits of using a Digital Maturity model?


The use of a Digital Maturity model to evaluate an organization must be aligned with an analysis of business objectives. It is important to define which dimensions of the model should be prioritized in the analysis.


However, recent research clearly shows that isolated initiatives have a lower chance of success than approaches that cover several areas of the company simultaneously. Evolution takes place as a whole, not in isolated silos within the organization. [1]


The benefits brought by greater digital maturity can be described as:

  • Revenue growth

  • Business flexibility

  • Better employee and customer experience

  • Operational efficiency

  • Business survival

Recent research [1] and [2] indicate that there is a correlation between digital maturity and organizations' financial results. The Technology and Operations dimensions are essential for increasing productivity. However, the dimensions of Customer, Organizational Culture and Strategy are forces that drive permanent evolution and innovative results.


What are the phases of a Digital Maturity assessment?

  • Understanding the company’s strategic and digital context

  • Survey of the company's digital ambitions

  • Digital Maturity Assessment

  • Current Situation Analysis, including the six dimensions of the DMM model: strategy, technology, operations, culture, customer relationships, data management.

  • Preparation of the company's current maturity document.

  • Search for Future Maturity

  • Activity based on the current situation, strategic context and company ambition.

  • Preparation of the company's future maturity document

Based on the assessment above, each company has the conditions to proceed in the following phases:

  • Gap analysis and priority assessment.

  • Definition of projects and activities.

  • Permanent evaluation of results


References

[1] McKinsey – Digital Transformations in Brazil – 2018/19

[2] TM Forum - Digital Maturity Model.

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