from digital maturity to your digitalization masterplan€¦ · masterplan. the definition of...

From Digital Maturity to Your Digitalization

Masterplan

The Definition of Digital Maturity

Digital Maturity is a measure of the capability and resilience of an organization to strengthen itself using digital technologies, along with having discipline to develop and maintain a high degree of technological fitness required to ensure survival and hopefully, thrive.

The Economy is by Nature Competitive… To prosper you must be smarter, more innovative, use better tools, and

move with a faster velocity than your competitors!

You can benefit from having the Digital Halo

Profit AmplificationThe ability to use technologyto lower costs and raiserevenues at the same time

Digital Marketing

Digital Operations

Assessing Digital Maturity

Assessing Digital Maturity

“Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.” ― H. James Harrington

TECH JR. HIGH

TECH HIGH

HARDWARE

SOFTWARE

LANFILE

MANAGEMENT

NETWORKSECURITY

NETWORKFOLDERS

CLOUDSERVICES

DATABASEARCHITECTURE

STRUCTUREDDATA

LEVEL 1

LEVEL 2LEVEL 3

LEVEL 4

SOFTWAREDEVELOPMENT

Measuring &Optimizing

OperatingRegularlyStructure

Development

Random EffortsDabbling

TECH JR. HIGH

TECH HIGH

HARDWARE

SOFTWARE

LANFILE

MANAGEMENT

NETWORKSECURITY

NETWORKFOLDERS

CLOUDSERVICES

DATABASEARCHITECTURE

STRUCTUREDDATA

DATAMASH-UPS

ANALYTICS

AUTOMATION

LEVEL 1

LEVEL 2LEVEL 3

LEVEL 4

LEVEL 5Leading Your

Industry

SOFTWAREDEVELOPMENT

Measuring &Optimizing

OperatingRegularlyStructure

Development

Random EffortsDabbling

Nine Dimensions of Digital Maturity

Each of these dimensions can be measured separately.

Any number of people can be involved with answering the assessment questions.

There is much to learn from just answering the questions!

Leadership Digital Readiness Parameters:

Strategic Planning Capabilities - This represents the skill of being able to be high beam and see the future accurately so that a winning strategy can be developed as well as the ability to communicate the strategy to constituents.

Technology Knowledge and Fluency - This measures the depth of knowledge a leader has concerning important digital concepts (e.g. big data, EA, governance). We also want to define the leaders ability to communicate digital concepts to the people they lead.

Ability to Inspire Cultural Change - A leader must be able to constantly improve and adjust elements of the organizations culture to fit new realities in society, and in view of the integration of people and technology. As a steady state, cultures must be more adaptive to the increasing pace of change.

Ability to Inspire Innovation - During a time of transformation, leaders must be visionary in order to see innovations that will change their industry and be fearless with making the investments necessary to stay relevant.

Ability to Execute Projects with Velocity - Transformation means lots of new projects that need to be done on time and on budget. Leaders set the tone, the policies, and accountability needed to move at the pace needed to prosper.

Digital Governance - In order to manage the complexity of the digital domain, it is critical to put processes and systems in place that make success repeatable. This parameter measures your leaders ability to build and adhere to technology governance.

Leadership Digital Readiness Parameters:

Data Maturity (DIKW) Parameters:

Data Governance - Data governance is key to bringing order to the chaos that can be a massive amount of free flowing data across an organization. Do you have the policies and procedures in place to assure high quality data that gets to the right place at the right time

Data Architecture & Functionality - In order for data to reach its full value, it must be organized in structures that make it accessible. In addition, powerful tools must be in place to mine it and convert information into something that can be quickly understood

Data Cleanliness & Hygiene - Clean data is highly valuable, unclean or incomplete data is much less valuable. In order to make decisions based on the process of DIKW, the underlying data must be clean. This parameter generates a score to help you see what your team members think

Optimized Volume - The concept of Big Data is powerful, so measuring whether your organization has the most beneficial amounts of data is key. Not too much, or you have data obesity, nor too little or you lack visibility - rightsizing data is an important piece of the puzzle

DIKW Humalogy Balance - DIKW is a concept that demands a combination of technology and humans in order to extract value. It is possible to have fantastic technology and not one team member who knows how to use it. This parameter helps you see which is in more need or progress

Visibility - Ultimately the real test of DIKW is the organizations ability to see facts clearly. With this parameter we are measuring your ability to see what needs to be discerned so that you can make winning decisions

Data Maturity (DIKW) Parameters:

Quantitative Questions - The vast majority of questions are this quantitative and they are primarily made up of yes/no and true/false answers.

Example: Does your organization have a written data governance policy

Qualitative (user survey) Questions - We ask approximately two of qualitative questions per parameter. They are used to gain information on the users opinion about this parameter.

Example: In your opinion, does the organization work hard enough to extract the value from the data that already exists in your databases

DMA Question Types

**** Approx. 800 Questions Overall

DMA Scoring System

We use a 1-100 scoring system that weights higher level achievements

DMA Scoring System


Negative answers on early questions are weighted to lower the overall score if positive answers are given for highest level questions (The Foundation Penalty)

DMA Scoring System


Negative answers on early questions are weighted to lower the overall score if positive answers are given for highest level questions (The Foundation Penalty)

Points are given across the five different levels of achievement (there is a level zero as well)

DMA Scoring System

Turning Scores into ActionOnce you have your scores, what should you do next? There are several pieces of information our scorecards identify where you can find opportunities to take action.

Turning Scores into ActionOnce you have your scores, what should you do next? There are several pieces of information our scorecards identify where you can find opportunities to take action.

Specific categories of

weakness and missing

aspects of maturity.

Areas where foundational steps have been skipped.

Variance in team scoring that reflects a need for better

communication.

Financial Results for Digital Workforce

Digital Workforce

1“Not Investing in Employee Training Is Risky Business,” Huffington Post, 2014.

• Companies that annually invest $1,500 for training for each employee see an average profit margin 24 percent higher than those that don’t.1

• Many enterprises are experiencing a skills gap. A recent survey reports that 38 percent of businesses globally are struggling to find the right talent.2

• By 2020, 43% of the US workforce is expected to be freelance.3 This creates an environment where companies can leverage a wide range of deep technical skills, and other valuable outside experience 4, without taking on FTE salaries/benefits.

2“2015 Talent Shortage Survey,” ManpowerGroup, 2015.3”Intuit Forecast: 7.6 Million People in On-Demand Economy by 2020,” 2015.4”Technology Vision 2016,” Accenture, 2016.

Financial Results for Digital Workforce

Financial Results for Tech Completeness/Leverage

Technology Completeness & Leverage

Company X: Has an annual $10M budget. Spends 3% of their annual budget on technology, or $300,000.

Most organizations aren’t 100% efficient with the tools they use.

Let’s say Company X’s average efficiency is 50% and it facilitates $20M in revenue annually.

If it could increase efficiency by 25% (to 75%), Company X could potentially:

Grow revenue from $20M to $25M Reduce expenses from $10M to $7.5M

…or…$20M Annual

Revenue

$25M Annual Revenue $10M Annual

Budget $7.5M Annual Budget

Financial Results for Tech Completeness/Leverage

Financial Results for Organizational Risk & Control

Financial Results for Organizational Risk & Control

Organizational Risk & Control

2016 Ponemon Cost of Data Breach Survey

• The average cost of a data breach across companies of all sizes increased from $3.8M to $4.3M in 2016.

• For small businesses, the average cost to clean up after a cyber attack is $690,000; for medium-sized organizations, it’s over $1M.

• For companies with business continuity plans in place for data breaches, losses were limited by 11% on average.

• Worldwide Average - 11% of $4.3M = $473,000• Medium-Size Businesses - 11% of $1M = $110,000• Small Businesses - 11% of $690,000 = $75,900

What Digital Maturity Looks Like

"There are always two choices, two paths to take. One is easy. And its only reward is that it's easy." -Unknown


"There are always two choices, two paths to take. One is easy. And its only reward is that it's easy." -Unknown A high state of digital readiness



Rapid innovation process




A high level of automation





Tech augmented relationships






More visibility into the Truth







Careful management of risks







Careful management of risks

A two-year lead on competitors

Action Plan When You Leave Here

www.fpov.com/smartindustry


1. Sign Up to Take Assessments, Choose Two Most Critical




2. Receive & Review Your Scorecards - Get Observations





3. Clearly Understand Weaknesses & Opportunities






4. Strategize Improvements for the Next Two Years







5. Establish Project Champions - Build Project Plans








6. Execute on the Plans - Hold People Accountable








6. Execute on the Plans - Hold People Accountable

7. Measure Outcomes / Reassess / Continue Making Progress



https://www.fpov.com/smartindustry

“Every line is the perfect length if you don't measure it.” ― Marty Rubin

http://www.goodreads.com/author/show/1936218.Marty_Rubin

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