Sunday, April 2, 2017

Building Digital Competency to Improve Business Maturity

 The right set of unique digital capabilities directly decides the overall organization’s competency and growth potential, to build high-effective, high-responsive, high-intelligent and high mature digital organizations.

Organizational maturity is assessed based on the overall business effectiveness, efficiency, operational excellence. agility, innovation, intelligence, resilience, and people-centricity. Many organizations are on the journey of digital transformation which represents the next stage of business maturity and will improve how the enterprise works and interacts with its digital ecosystem, with people at the center of its focus. But more specifically, what are further aspects of building digital competency and logical steps for improving business maturity?

Assess the current state of business capability (people, process, technology, etc.): A capability is an ability that an individual, organization, or system possesses. Capabilities are typically expressed in general and high-level terms and typically require a combination of organization, people, processes, resources, and technology to achieve. By assessing the business capability, the management readily considers service, process, information, asset, people, etc., dimensions of the adequacy of the capability to fulfill their business strategy. It is important to identify the capability gaps and develop the target state capability for strategy management. Also comparing your set of capabilities with competitors' to ensure that it is developing differentiated capabilities to gain unique competency. You should have an in-depth understanding of what capabilities are critical to building the long-term competency for the business's long-term prosperity.

Establish digital principles and practices for building business competency: Principles are guidelines to help navigate digital transformation. There needs to establish digital principles for building a cohesive set of business competency. The digital credos are the top principles to run digital organizations today, they are not the static rules or rigid processes to limit the business potential. Instead, they are the philosophy behind the digital methodologies and practices, and they are the mindsets behind behaviors and actions for building organizational level business competency. You will need a cascade of statements that link the overall vision/philosophy (common value-driven target) of the organization, value statements used to monitor overall performance - how the vision is achieved. It’s not easy for a set of principles defined that can be applied holistically to drive digital transformation systematically. Going digital is not just about the products you make or the website you design. It’s a core shift in how the business operates and the full set of business capabilities and core competency to improve overall organizational maturity.

Source appropriate strengths and skills to deliver desired capability: Organizations need to pay more attention in creating shared and admirable goals and then encourage the teams to compete and collaborate as they deem fit. The business competency can only be built via high effective leadership that inspires with a clear vision, engage with inclusive teams, focus on higher order intrinsic needs and raised consciousness about the significance of specific outcomes and new ways in which those outcomes might be achieved. Don't forget about communication, transparency, and acts of integrity on the part of digital management in creating organizational trust. It is about establishing the highly innovative and high-performing team with complementary capabilities and skills, being inclusive and recognizing merit and ideas, no matter where they come from. When high-competitive teams laser focus on the shared goals of the organization, they compete (professionally) and complement (when needed) towards the attainment of the shared goals and that creates a conducive environment for the collective potential to unleash and collective capability to flourish.

Assess the effectiveness and maturity of business capabilities: The cohesive set of business capabilities become the digital competency of the organization. The maturity of a business capability would be based on the ability for the capability to deliver on either customer needs or to achieve the desired capability outcome. In other words, capability maturity can be measured against the achievement of desired business or customer outcomes. This can be accomplished by measuring (a) the technology impact on capability effectiveness, and (b) the process impact on capability effectiveness (c) the people factor about the collective capability effectiveness and maturity (changeability, innovation, etc.)

Many forward-looking organizations are at the inflection point of digital transformation. It implies the full-scale changes in the way the business is conducted, such as mindset, talent, skills, capabilities, processes, technologies. The right set of unique digital capabilities directly decides the overall organization’s competency and growth potential, to build high-effective, high-responsive, high-intelligent and high mature digital organizations.


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