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Digital Business Transformation and Improvement Pocket Book (Edition 2)
www.orgcmf.com
Pocketbook Edition 2
Best Practice Body
of Knowledge
How to Plan &
Implement Digital
Change?
Digital Business
Transformation &
Improvement Pocket Book
A Comprehensive Reference Guide for both Technical & Non-Technical
Managers & Professionals.
Technologies & Buzz
Words explained
What does Digital
Transformation
involve?
Essential Digital
Business Capabilities
How to Assess
Readiness &
Progress?
Digital Business Transformation and Improvement Pocket Book (Edition 2)
www.orgcmf.com
Pocketbook Edition 2
Table of Contents
Chapter 1: Introduction................................................................................................................6
Author & Principal Investigators.........................................................................................................6
Prologue..............................................................................................................................................6
Purpose ...............................................................................................................................................8
Chapter 2: Overview of Digital Transformation and Change......................................................... 10
The Nature of Digital Change............................................................................................................10
The known challenges of Digital Transformation .............................................................................11
Change and Transformation Capability Improvement .....................................................................13
Chapter3: The Digital Technologies & Buzz words?...................................................................... 14
Software Stack ..................................................................................................................................14
Applications.......................................................................................................................................15
Software Platform.............................................................................................................................16
Social & Media ..................................................................................................................................16
Data & Security .................................................................................................................................17
Hardware Perimeter .........................................................................................................................18
Connectivity & Cloud ........................................................................................................................19
Main Hardware .................................................................................................................................20
Models & Methods ...........................................................................................................................20
Backbone & Legacy...........................................................................................................................21
Digital Ecosystems.............................................................................................................................22
Chapter 4: Capability Maturity Management .............................................................................. 24
What are Capability Maturity Models & Why are they important?.................................................24
What are Business & Organisation Capabilities?..............................................................................24
Why is understanding Capabilities useful?.......................................................................................24
What are the Relationships between Capabilities, Competences, and Processes? .........................25
Why is it often a challenge to understand how an organisation functions, performs, and to make
successful changes?..........................................................................................................................25
An Example of a list of Digital Organisation Capabilities (DMI™ Reference Model) ........................26
What is a Maturity Level? .................................................................................................................27
What new insights does Unitary Developmental Theory bring to understanding Capability Maturity
Levels?...............................................................................................................................................28
What is a Capability Maturity Model?..............................................................................................29
What is a Capability Maturity Framework? ......................................................................................29
Choosing a Capability Maturity Model and Framework...................................................................29
Using a Capability Maturity Model & Framework ............................................................................30
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Pocketbook Edition 2
A high-level view of a Capability Maturity Improvement Methodology ..........................................31
The Organisation Capability Maturity Framework ...........................................................................31
The Three Reference Models & Bodies of Knowledge .................................................................32
The Organisation Development Tools Institute................................................................................32
OrgCMF™ Improvement Roadmaps .................................................................................................33
OrgCMF™ Benefits ............................................................................................................................33
Get Started with OrgCMF™...............................................................................................................34
Examples of Capability Maturity Frameworks..................................................................................34
CMMI.............................................................................................................................................34
COBIT.............................................................................................................................................34
IT-CMF...........................................................................................................................................35
Prosci Change Management Maturity Model...............................................................................35
PMI Maturity Model......................................................................................................................35
Use Cases ..........................................................................................................................................35
Personal Familiarisation:...............................................................................................................35
Organisation Familiarisation & Validation:...................................................................................35
Leadership Alignment:..................................................................................................................35
Key Staff Alignment:......................................................................................................................35
Specific Business/Operational, Issue/Opportunity:......................................................................36
Transition/Transformation (Readiness):.......................................................................................36
Continuous Improvement:............................................................................................................36
Internal Benchmarking:.................................................................................................................36
External Benchmarking:................................................................................................................37
Chapter 5: Digital Maturity Index (DMI)...................................................................................... 38
DMI Model (M1) ...............................................................................................................................38
DMI Dynamics (M2) - Macro Capabilities .........................................................................................41
Digital Strategy – (Value Planning)................................................................................................41
Digital Strategy Constructs (M3 - Micro Capabilities)...................................................................43
Digital Workplace - (Value Creation) ............................................................................................44
Digital Workplace Constructs (M3 - Micro Capabilities)...............................................................46
Digital Offering - (Value Proposition)............................................................................................47
Digital Workplace Constructs (M3 - Micro Capabilities)...............................................................49
Customer Intimacy - (Value Source) .............................................................................................50
Customer Intimacy (Digital) Constructs (M3 - Micro Capabilities) ...............................................52
Operating Model - (Value Structure) ............................................................................................53
Operating Model (Digital) Constructs (M3 - Micro Capabilities) ..................................................55
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Pocketbook Edition 2
Technology (Value Enabler) ..........................................................................................................56
Technology (Digital) Constructs (M3 - Micro Capabilities) ...........................................................58
To view Construct (Micro-Capabilities) Development Roadmaps....................................................58
Other OrgCMF™ Models based on UDT............................................................................................59
The Organisation Maturity Index (OMI)........................................................................................59
The Team Maturity Index (TMI)....................................................................................................60
Chapter 6: Assessing Readiness & Progress for the Digital Journey .............................................. 61
Step 1: Initiate Capability Building Improvement.............................................................................61
Step 1a: Define the Transformation, Change and/or Improvement ............................................61
Step 1b: Define the Assessment Objectives .................................................................................62
Key Assessment Design & Configuration Considerations.............................................................62
Step 2: Review and Select the Appropriate Capability Maturity Assessment Reference Model. ....62
2a Login to your www.orgcmf.com User Account........................................................................64
Step 3: Select Assessment Type........................................................................................................64
Step 3a: Select Assessment Tier....................................................................................................65
Step 3b: Select Reference Model (If your Plan has more than one).............................................65
Step 4: Select Capabilities for Assessment (Dynamics) ....................................................................66
Step 5: Add Assessment Details & Participants................................................................................66
Step 5a Add Assessment Details...................................................................................................66
Step 5b: Participant Details, Save & Publish.................................................................................67
Step 5c: Completing an on-line Assessment (for Participants).........................................................68
Landing Page for Assessment Participants ...................................................................................69
Answering Assessment Questions................................................................................................70
Step 5d: Assessment Report (On-line, Real time).........................................................................70
Viewing Report..............................................................................................................................71
Step 6: Action Planning.....................................................................................................................73
Step 6a: Analysis and Discussion...................................................................................................73
Step 6b: Prioritisation of Capabilities for Building/Improvement ................................................73
Step 6c: Assignment and ownership of actions and Governance of Improvements........................73
Chapter 7: Methodology (Approach) for Leading & Managing Digital Transformation & Change... 74
Set Direction......................................................................................................................................75
C3
Catalyst, Context, Case..............................................................................................................75
Setting Direction for Digital Transformation - Summary (C3
) .......................................................81
Manage Execution ............................................................................................................................81
(R3
= Right Things, at the Right Time, in the Right Way)...................................................................81
Capabilities to Manage Digital Business Transformation & Change.............................................81
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Pocketbook Edition 2
Governance & Progress Monitoring .............................................................................................82
Where does the popular Agile Manifesto & Agile techniques fit in this recommended Digital
Transformation & Change approach?...........................................................................................83
Sprints ...........................................................................................................................................85
Inform Action (Sprints)......................................................................................................................86
Digital Competence.......................................................................................................................86
Implementation Action Information Guidance.............................................................................87
Assessment, Measurement & Metrics..........................................................................................89
Chapter 8: Glossary.................................................................................................................... 90
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Pocketbook Edition 2
Chapter 1: Introduction
Author & Principal Investigators
Declan Kavanagh DipEng, CDipAF, MBA
Declan has over 40 years’ experience in technology business, initially with multinational ICT
organisations holding a range of senior engineering and management positions, rising to CEO level.
He founded a software services company in 2003 which was acquired by Capgemini/Sogeti in 2008.
Since then, he has advised many organisations Nationally & Internationally and worked with
Academia and Irish Technology Research Centres in the area of Starting, Scaling & Capability
Building. During his career Declan Led and managed several significant Organisation Transformations
and managed Change on an ongoing basis. In 2018 he co-founded the Organisation Development
Tools Institute (ODTI) with Dr. Myles Sweeney. ODTI Researches, Develops and Provides a Digital
Platform & Tools that help organizations’ plan and execute Incremental, Transitional and
Transformational Change, based on Organisation Science and Unitary Developmental Theory.
Dr. Myles Sweeney BA (Psychol.), MBS (Finance), PhD (Business/Economic Psychology)
Dr. Myles Sweeney is a very experienced Organization-Development Consultant who has developed
breakthrough models and tools to advance theory and practice substantially. He has been active in
Ireland for 27 years across most sectors through his own business and as an associate for e.g., Grant
Thornton, Century Management, Rigney Dolphin, Torc Consulting, etc. With support from Enterprise
Ireland, he researched and developed Unitary Developmental Theory (UDT) modelling, which
includes normative diagnostics and development for people, organizations and economies. This is
enabled for organizations online as OrgCMF™ and promoted by the company Organization
Development Tools Institute (ODTI) of which he is co-Founder/Director with the CEO-Level
experienced Declan Kavanagh, and supported by DCU’s Business School. Previously, he had worked
at with Allied Irish Banks, attained post-graduate qualifications across Psychology, Management and
Finance, and lectured on subjects across these disciplines in University College Dublin, Dublin City
University, Dublin Business School and All Hallows College. It is acknowledged that OrgCMF™ is the
only Capability Maturity Framework based on an underpinning academic theory and it has advanced
our understanding of how to reduce the high level of failure (70%+) that has existed in Change
Management up to now.
Prologue
There is much written about Digital Transformation and what it is? And what Leaders, Managers and
Staff should do? It can often be confusing for the non-technical person, and for that matter for some
technology professionals also.
The pace and nature of the emergence of new technologies and new technology applications will
continue to accelerate, as will the volume of related Buzz Words and Acronyms. What will not
change is the importance for all organisations to maintain awareness of existing and emerging
technologies, and their potential impact on Business, Organisations, Teams, Activities, Roles and
Skills, in order to be able to assess and adopt those technologies that have value for their
stakeholders and stakeholder entities.
Since the first commercial computers became available in the 1950s’, there has been an actual or
perceived disconnect between the Business & the Technologists, sometimes referred to as Silos.
Despite advances in both management and methods such as DevOps, Iterative Development, Agile,
Collaboration and Budget Control models this misalignment, perception and related
Digital Business Transformation and Improvement Pocket Book (Edition 2)
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miscommunications still exist. I still hear the issue being raised formally and informally at Leading
International ICT related Conferences as recently as Q1 2023. ‘They don’t understand what we have
to do!’ is a much-quoted statement over the decades.
This book is my attempt to demystify Digital and Digital Transformation, and make clearer the nature
and language of Digital Transformation, Transition and Change, for both technical and non-technical
people. In addition, provide some hints, tips, methods and tools that bring greater assurance that
any investment in technology will achieve the desired business outcomes.
Remember Digital (Technology) Change & Transformation must be driven by the Business,
Organisation, Customer and User needs, with a view to achieving some related defined aims and
objectives that relate to Value. It is significantly facilitated by Technology & Technology
Professionals.
If the book can achieve closer alignment, communications and collaboration between business and
technology entities, and professionals, and improved Digital Transformation and Change outcomes,
it will have achieved something of merit.
Chapter 1: Introduction
In this chapter the Purpose and Context of Digital Transformation and Change are introduced along
with introducing the Author and Research Contributors.
Chapter 2: Overview of Digital Transformation & Change
In this chapter, the nature of Digital Change is presented covering the main Challenges, Opportunities
and Capability Building.
Chapter 3: Technologies & Buzz words
In this chapter the language of Digital Transformation is presented along with a simple explanation
of all the main Technologies, Services & Buzzwords.
Chapter 4: Capability Maturity Management
In this chapter the relevance and importance of Capability Maturity Development in Digital
Transformation is explained and Digital Capability Maturity Frameworks introduced.
Chapter 5: Digital Maturity Index
In this chapter the Body of Knowledge and Capability Development paths are fully presented in detail
for the six Digital Macro Capabilities (Dynamics)
• Digital Strategy (Value Planning)
• Digital Workplace (Value Creation)
• Digital Offerings (Value Proposition)
• Digital Operating Model (Value Structure)
• Digital Customer Intimacy (Value Source)
• Digital Technology (Value Enabler)
Chapter 6: Assessing Readiness & Progress on the Digital Journey
In this Chapter a process for Assessment and Measurement of an Organisation's or Team's Digital
Capability Maturity is introduced and explained.
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Chapter 7: Methodology (Approach) for Leading and Managing Digital Change
In this chapters the steps and stages to effectively and successfully manage Digital Transformation &
Change are introduced and explained.
Chapter 8: Glossary
In this chapter there is a glossary of terminology for Transformation, Change and Improvement
Purpose
Digital Transformation, Change & Improvements are business driven changes, which are enabled by
existing & emerging technologies. Success or Failure in achieving the Organisations Goals for Digital
Business Changes are usually determined by having in place the right Capabilities, at a right Level of
Maturity at the right Time.
It’s often down to the CIO and his/her team to drive Digital Transformation, Change & Improvement,
and more and more they are influencing and contributing from a business perspective, as much as a
technology perspective. There are several technology management centric Capability Maturity
Models such as CMMI, COBIT, and IT-CMF which are examples that can guide Technology Leaders in
their Digital Transformations and Changes. These are powerful Bodies of Knowledge when, looking
at best practice from the ‘lens’ of the ICT professionals. But until recently there has been limited
Reference Models for ‘Digital Business’ and ‘Organisation’ Transformation. That said even in today’s
advanced organisations, the same challenges are raised, as they have been since the advent of the
Computer ‘There continues to be mis-alignment between the Business and IT’, ‘Formal and
Perceived Silos still exist’
Part of this challenge is down to the fact that Ownership of Digital Transformation, Change and
Improvement is not shared across the business functions; Mutual Competence, Knowledge and
Understanding of each other’s domains, are not in place at the appropriate level; and limited
acknowledgement, that these Digital Changes are fundamentally Business & Organisation
Development activities.
Virtually all academic and Industry Analyst research publications over the years confirm that 70% of
Change initiatives fail to meet their original objectives, despite advances in our understanding of
Change & Change Management, and this applies equally to Digital Transformation & Change.
15 years ago, co-founder of the Organisation Development Tools Institute and renowned expert in
the field of Organisation Psychology, Learning and Economics Dr. Myles Sweeney, set out to find the
root causes of Change failure, and to develop a solid theoretical and practical model to radically
reduce this 70%+ failure rate, and enhance our understanding of ‘How Organisations Function &
Improve’. Myles’s work using his expertise and research, combined with Systems Theory, led to the
peer review and publication of ‘Unitary Developmental Theory’.
Unitary Developmental Theory (UDT) is a scientific means for understanding and improving Human
Systems, such as an Organisation System. It explains how they Function? Why they Perform at a
specific Level? The nature of their Culture and the Learning and Development Process.
This Pocket Book summarises the application of UDT through its Operationalisation in the
Organisation Capability Maturity Framework (OrgCMF), Digital Maturity Index (DMI) Reference
Model. It takes the Management Science as applied to Digital Business Transformation, Change and
Digital Business Transformation and Improvement Pocket Book (Edition 2)
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Improvement and presents the Body of Knowledge to the reader from the perspective of Business-
Driven Digital Transformation & Change rather than from a pure Technology or Technology
Management Perspective. It complements the technology centric Capability Maturity Models.
The DMI Reference Model and Body of Knowledge are compliant with the rules of UDT, and enabled,
in an accessible, usable and useful manner to all levels in a business organisation whether it be
Public, Private or Not for Profit; or, CXO, Manager, Professional or Team Member.
The Book provides readers with the basis for understanding their existing Digital Business
Capabilities, and related Maturity Levels, and a means to identify the Gaps in their existing Digital
Business Capabilities, required to achieve their business and Transformation, Change or
Improvement goals. It introduces the roadmaps for each key Digital Capability to achieve the Level 7
Maturity, the highest Maturity Level.
The book will explain and enhance your understanding of:
• What is involved in Digital Transformation & Change for any Organisation or Team?
• Explain the key Digital Technologies, their Application, and Buzz-Words
• Explain all 36 Digital Business Capabilities and the Development Process
• Provide Guidance on How to Assess Readiness for and Progress on the Digital
Transformation journey for any Organisation or Team.
• Provide Guidance, Hints, Tips, Tools & Techniques to help Plan and Implement Digital
Transformation & Change.
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Chapter 2: Overview of Digital Transformation and Change
The Nature of Digital Change
A strategic imperative for most organisations, must be to leverage existing and emerging technology
to become, or maintain their leadership position at one end of the spectrum, or for survival at the
other end of the spectrum, and all the scenarios in between. The context for each organisation will
determine the nature of Digital Change it must implement, whether it be Incremental Improvement,
Transitional Digitization Change, or more fundamental Strategic Digital Transformation.
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The known challenges of Digital Transformation
The organisations Digital Strategy is the responsibility of the Leadership team, not just the IT
function, who of course play a key role. Let us consider the key challenges identified by Industry
Analysts and Leaders relating to Digital Change Programs in organisations;
• Lack of shared Vision & realistic plan
• Enabling Focus, Direction, Expectations, KPIs
• Lack of Talent, Understanding & Skill
• To Lead, Manage and Execute Transformation
• Legacy Systems inertia
• Existing IT perceived as Inflexible, & not Interoperable, Integrable, Securable
• Poor Investment and success measurement
• Budget, Impact Visibility, ROI
• Insufficient Customer focus, understanding and data leverage
• Their journey, what they tell? what you know?
• Resistance to Change and Change Management
• From Model to Task, and a process for change
• Culture & Collaboration
• Silos, Behaviours, Values
What we see here is that many of the challenges relate to
Leadership, Personal & Organisation development, as much as
Technology & Customer development, re enforcing the important
role each function in an organisation can play in setting the strategy
and implementation of successful Transformation. Successful Digital
Transformation requires alignment of the organisations aims and
ambitions, with the required capabilities to achieve these aims and
ambitions.
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Digital Transformation is where the process starts before destination is fully defined. The scope is
significant with fundamental change to Models, Product, Process, Operations, Technology to meet
Customer needs. The level of People, Team and Organisation impact is significant.
Digital Transition is where an existing way of operating is replaced by known but different way. It
occurs in a realistic timeframe and usually impacts specific organisation domains/sub-systems. It
often includes changes to Models, Product, Process, Operations, Technology to meet Customer
needs for the target domain (Sector, BU, Function etc).
Incremental Digital Improvement Focus is mainly improving something existing. The Current Culture
and Practice will produce change. Acquiring capabilities to achieve it is practical.
Non-technical leaders and professional play a key role in Digital Transformation, and though
Information Technology (IT) Leadership and IT Professionals play a central role, and are often the
focal point, it’s important to maintain alignment with the Business Goals. It is widely acknowledged
that Digital Change and Transformation are Organisation Change iniatives’, which impact many
stakeholders and ecosystems. In order that non-technical leaders and professionals can engage and
significantly influence the success of the change or transformation, and to enhance the collaboration
with IT a basic knowledge of Digital Technology and Language is extremely advantageous.
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Change and Transformation Capability Improvement
An Organisation’s current measured capability determines two things:
1. Its current performance
2. Its ability to change (Rate of change)
The success potential of any change initiative is determined by:
1. The specific organisation change itself
• Nature/Type
• Level of ambition
2. The Capability Maturity of the organisation
• The specific capabilities required, and
• Their level of maturity
By measurement of the current capabilities and their maturities, using The Organisation Capability
Maturity Framework OrgCMF™ Maturity Assessments, and by using the OrgCMF™ reference model
and body of knowledge, the success potential for any change or transformation program can be
significantly improved.
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Chapter3: The Digital Technologies & Buzz words?
Digital change is the application of any aspect of information technology, to any aspect of an
organisations value pyramid, at any level, to achieve a target business outcome.
As we review the main digital technologies and methods, we will try to draw out their roles as it
relates to the end state business or operational process enabled by a machine/device enabled
software application.
Software Stack
Software Stack; (refers to a group of software programs that work in tandem to achieve a common
goal, each providing a specific function e.g., Web application)
Operating System; Manages hardware and software, to provide shared resources for the
applications which run on the computing platform. Bridges S/W Applications to Hardware Functions.
(Web) Server; a system that responds to requests across a computer network to provide, or help to
provide, a network or data service.
Database; an organized collection of data It is the collection of schemas, tables, queries, reports,
views, and other objects.
Programming Language; a formal language that specifies a set of instructions that can be used to
produce various kinds of output. Enables the Computer do what the Programmer & User want.
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Applications
App. (Mobile App); A software application running on a mobile device. Provides value to the User.
Virtual Reality (VR); a realistic and immersive simulation of a three-dimensional, 360-degree
environment, created using interactive software and hardware, and experienced or controlled by
movement of the body" or as an "immersive, interactive experience generated by a computer".
Augmented Reality (AR); a live direct or indirect view of a physical, real-world environment whose
elements are augmented (or supplemented) by computer-generated sensory input such as sound,
video, graphics or GPS data.
Artificial Intelligence; any device that perceives its environment, and takes actions that maximize its
chance of success at some goal. Colloquially, the term "artificial intelligence" is applied when a
machine mimics "cognitive" functions that humans associate with other human minds, such as
"learning" and "problem solving".
(Data) Analytics; the discovery, interpretation, and communication of meaningful patterns in data in
any digital media to achieve a specific goal. It includes predictive analytics and behavioural analytics.
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Software Platform
A Platform; is a group of technologies that are used as a base upon which other applications,
processes or technologies are developed. A personal computing platform is a modern laptop running
Windows as an operating system. Another example would be an Apple computer running the Mac
OS operating system, or Mobile Device might be hardware that runs Apples IOS or Googles Android
OS. A corporate Platform might be based on Oracle, or SAP technologies as another example.
Application Programming Interface (API); In basic terms, APIs just allow applications to
communicate with one another. It is a set of functions and procedures allowing the creation of
applications that access the features or data of an operating system, application, or other service.
Neural Network; a computational model used in machine learning, computer science and other
research disciplines, which is based on a large collection of connected simple units called artificial
neurons, loosely analogous to axons in a biological brain.
Block Chain; a distributed database that maintains a continuously growing list of records, called
blocks, secured from tampering and revision. Each block contains a timestamp and a link to a
previous block. By design, blockchains are inherently resistant to modification of the data — once
recorded, the data in a block cannot be altered retroactively. Through the use of a peer-to-peer
network and a distributed timestamping server, a blockchain database is managed autonomously.
Blockchains are an open, distributed ledger that can record transactions between two parties
efficiently and in a verifiable and permanent way. The ledger itself can also be programmed to
trigger transactions automatically. Cryptocurrencies such as ‘Bitcoin’ are one well know application
but there are many others where privacy, confidence and security are required such as sharing of
Patient Healthcare Records, Cross Border Payments, Music Royalty Tracking etc.
Social & Media
Social Media; are computer-mediated technologies that facilitate the creation and sharing of
information, ideas, interests and other forms of expression via virtual communities and networks.
They have evolved to become business platforms for creating and/or engaging in eco-systems,
promotion, sales and delivery of products and services as well as enabling collaboration internally
and externally in an organisation or as an individual or interest group.
Digital Media; normally refers to data and information format, the means of storage, and/or
presentation and interaction between the end user and the digital data/Information such as Text,
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Graphic, Animation, Audio, Video, on any digital device or transducer. (EG web, Tablet, PLC, Doc, PDF
etc).
Data & Security
Big Data; a term for data sets that are so large or complex that traditional data processing
application software is inadequate to deal with them.
Data Protection; (Information Privacy): describes all steps and organisation take to protect personal
data they receive, process and/or store both physical and digital, including policy, procedure, tool,
software, security. Often to comply with laws and regulations (e.g., GDPR).
Cyber Security: (IT Security); is the protection of computer systems from the theft or damage to
their hardware, software or information, as well as from disruption or misdirection of the services
they provide.
Botnets; are networks made up of remote-controlled computers, or “bots.” These computers have
been infected with malware that allows them to be remotely controlled.
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Hardware Perimeter
Robot(ics)-Droid; is a machine, often one programmable by a computer, capable of carrying out a
complex series of actions automatically. Robots can be guided by an external control device or the
control may be embedded within. Robots may be constructed to take on human form but most
robots are machines designed to perform a task with no regard to how they look. (Drones and
autonomous vehicles can be included here). It can be software and/or hardware.
(Intelligent/Connected) Machine; a tool or device containing one or more parts that uses energy to
perform an intended action (s) that has electrical/digital connectivity to other devices.
Internet of things; refers to the connection of any physical item (component, device, machine,
subsystem, system) to other computing resources that can provide input, receive output, process
and/or take an action. Expanding the scope of software applications to include control of “Things”.
Transducer; is a device that converts a signal in one form of energy to another form of energy, a
sensor is a transducer. A sensor is a converter that measures a physical quantity and converts it into
a signal which can be read by an observer or by an (today mostly electronic) instrument.
Device; is a constructed tool of any type, in any of the core sciences, and across the sciences, sensors
above are devices, many sensors combine chemical processes with physical or electrical property
changes that can be measured to indicate the target measurement dynamic and magnitude. In IT
Device often means a physical electronic device, such as a Phone, PC, Tablet, Server, Sensor, Server,
Car (connected) etc.
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Connectivity & Cloud
(Computer) Network; a telecommunications network which allows nodes to share resources. In
computer networks, networked computing devices exchange data with each other using a data link.
The connections between nodes are established using either cable media or wireless media.
Cloud; a set of private, public or hybrid computing resources available to authorised users via the
internet on an as needed basis which are dynamically scalable, and user often pay as they use the
resources.
**(IaaS) Infrastructure as a service; normally relates to access to data centre physical computing
devices (Hardware) and network resources (CPU, Server, Storage, I/O etc).
**(PaaS) Platform as a service; relates to access to and use of specific software stacks, which usually
reside on an IaaS.
**(SaaS) Software as a service; relates to access and use of specified software applications and/or
functionality.
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Main Hardware
Central processing Unit (CPU): This is the main processor comprising of electronic circuits which
performs functions and calculations as instructed, that are derived from software. Sometimes
referred to as the ‘Microprocessor ‘, ’Silicon Chip’ or related circuit board containing the electronic
components.
Storage: A Computer System has several types of storage; The main storage is computer memory,
which are Silicon Chips that contain the circuitry that store the binary software instructions and data
that the CPU uses for processing, these are high speed dynamic access storage units. Other key
storage units are hardware units with significantly higher storage capacity, which contain all the
software stack and Applications and related data, these units may be Magnetic Hard Disks, Compact
Disks, and Solid-State silicon chips.
Power: Computing Units are electrical devices that require electrical A/C power, which is converted
to the required A/C & D/C lower Voltages, required to operate the electrical components that enable
them to function correctly.
Facilities: Most personal computers can operate under normal conditions, but larger and more
complex systems such as Servers, Main Frames, Storage Systems etc require special Utilities and
Environments to assure Safe, Reliable and Secure functioning. This can include Air-Conditioning,
Electrical Noise Screening, Power Conditioning, Back-up Infrastructure, Raised Floors etc.
Models & Methods
Digital Twins; A dynamic software model of a physical thing or system. Using physics data on how
the components of a thing operate and respond to the environment, as well as data provided by
sensors in the physical world, a digital twin can be used to analyse and simulate real world
conditions, responds to changes, improve operations and add value. Digital twins of physical assets
combined with digital representations of facilities and environments as well as people, businesses
and processes will enable an increasingly detailed digital representation of the real world for
simulation, analysis and control.
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Mesh; Refers to the dynamic connection of people, processes, things and services supporting
intelligent digital ecosystems. As the mesh evolves, the user experience fundamentally changes and
the supporting technology and security architectures and platforms must change as well.
DevOps; a term used to refer to a set of practices that emphasize the collaboration and
communication of both software developers and information technology (IT) professionals while
automating the process of software delivery and infrastructure changes. It aims at establishing a
culture and environment where building, testing, and releasing software can happen rapidly,
frequently, and more reliably.
Agile (Development); a set of principles for software development under which requirements and
solutions evolve through the collaborative effort of self-organizing cross-functional teams. It
advocates adaptive planning, evolutionary development, early delivery, and continuous
improvement, and it encourages rapid and flexible response to change.
Backbone & Legacy
Backbone (Infrastructure); Most often refers to the core IT Infrastructure that supports the
deployment of an organisation’s digital services and applications (Data Centres, Servers, Networks,
Standards, Platforms, Tools). Existing organisations will have legacy backbones.
Legacy Systems; usually refers to the existing and/or past computing resources and technologies in
use in an organisation or ecosystem. It includes hardware, software, architectures, records,
methods, data etc.
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Digital Ecosystems
Ecosystems are where components/resources of an organisation network rely, are influenced,
leverage or interact with components/resources of internal or external environments, organisations,
entities, physical and human resources. They are part of a system, and an organisation’s systems
may or may not extend to the external world.
Digital Ecosystem is a group of interconnected information technology resources that can function
as a unit. Digital ecosystems are made up of suppliers, customers, trading partners, applications,
third-party data service providers and all respective technologies. Interoperability is the key to the
ecosystem's success.
The integration of business-to-business (B2B) practices, enterprise applications and data within an
ecosystem allows an organization to control new and old technologies, build automated processes
around them and consistently grow their business.
Business Organisation
Customers
Suppliers
Banking
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Above we can see some examples
Digital Business Ecosystem
The management of transactions Digitally between stakeholders in a supply chain where there is
Interoperability between the applications and data flows that enable business and operational
processes to function at an application level through common technologies and standards.
Digital Technology Ecosystem
A common technology that enables Interconnection, Interaction and Interoperability between a set
of technologies and/or Applications. In this example it’s the ‘Operating System (OS)’ so for a specific
OS any application or service should work in any environment. Think of Apple IOS as an example
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Chapter 4: Capability Maturity Management
What are Capability Maturity Models & Why are they important?
Perhaps we should start with the question below
What are Business & Organisation Capabilities?
Capabilities are most often defined as ‘The ability to mobilise resources to achieve an Aim’. This is
quite a general description but it captures the essence of what a Capability is.
The strength of understanding and managing Capabilities is that it can apply at any organisation
group or level and, to any person or thing. From a Business & Management perspective we are
mainly concerned about the Capabilities of:
• Organisations
• Functions
• Teams
• Processes
• Activities
• People
• Machines
Why is understanding Capabilities useful?
Ultimately a Business, Organisation, Team or Function’s; Performance, Practices and Culture are
determined by the level of their Capabilities (Often referred to as their Maturity Level, Functioning
Level or Learning Level).
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Capabilities encompass the often sophisticated ‘Inters’ within and Organisation system, sub-system
and elements, which ultimately determines outcomes and outputs. For example, if we take a ‘Work
Activity’ in an organisation process, the effectiveness and outputs are determined by many factors
within that activity, and many external factors (Skills, Attitude, Data, Machines, Techniques, Process,
Environment etc. etc). Capability Maturity Management is a means of understanding, managing and
improving outputs and outcomes in this sophisticated scenario, especially in times of VUCA.
What are the Relationships between Capabilities, Competences, and
Processes?
Business processes are sequences of actions that organizations engage in to accomplish
specific tasks. They represent how an organization’s resources are exploited, and can be
thought of as the routines or activities that an organization develops to get something done.
Business processes require the competences (knowledge, skills, and experience) of individual
employees and groups for their effective execution. In turn, business processes help individual
employees and groups develop competence in particular ways of working. Processes and
competences are thus mutually dependent and reinforcing.
Effective and efficient processes are critical for business operations, but they must be regularly
evaluated and where necessary modified to ensure that they continue to meet the organization’s
ongoing requirements and to deliver sustainable business value. Capability management provides
the vital link between the business’s strategy and environment and its business processes. It gives
the organization the ability to create patterns of learning and adjustment and to establish and
maintain synergetic relationships between competences (people), processes (routines), and resources
(assets) to accomplish a desired end.
Why is it often a challenge to understand how an organisation
functions, performs, and to make successful changes?
Because organisations are complex systems made up of many diverse elements that usually
influence or impact on each other in different ways. We describe these influences or impacts as ‘The
Inters’
• Interrelationship: The way in which two or more things or people are connected and affect
one another.
• Interconnected: Different parts, people or things that are connected or related.
• Interoperable: The ability or two or more people or things to share information and/or
resources.
• Interdependent: The state of two or more people or things being dependent upon one
another
• Interlayered: A person or thing inserted between other persons or things (layers)
• Intercepted: To take, touch, monitor, halt or someone or something on its way to a
destination.
• Intervention: the act of interfering with the outcome or course someone or something.
• Intermediated: Lying or occurring between two extremes or in a middle position or state for
persons or things.
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Capability Maturity Reference Modelling is a means of representing the Organisation system and its
‘Inters’ to provide a Framework & Simplification, to plan and execute Change, Transformation and
Improvement.
An Example of a list of Digital Organisation Capabilities (DMI™
Reference Model)
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What is a Maturity Level?
The Maturity Level for Capability Management is the measurement scale which is used to define the
specific traits and performance at each defined level in the scale, for each specific Capability. Many
maturity models use descriptive scales with 5 levels, some use a normative and scientific 7 or 15
level scale. Unitary Developmental Theory (UDT) identifies 15 discreet maturity levels, while The
Organisation Capability Maturity Framework (OrgCMF™) Reference Models use a more practical 7
level normative scale based on UDT.
The Maturity Level may also be stated as the Functioning Level of an Organisation, Team or Specific
Capability which can be measured and stated as the existing habituated level (measured level). So,
the Maturity Level describes the Functioning Level and explains the consequential Performance,
Practices and Behaviours.
The Maturity Level also may be stated as the ‘Learning Level’ for an Organisation, Team or Specific
Capability. The ‘Learning Level’ may be described as the ability to change, in other words the nature,
magnitude and frequency of change that can gain sustainable traction (In effect the Agility).
By understanding the Maturity Level of an Organisation, Team or Specific Capability we can
understand why it performs at a specific level, and its ability to respond to change. This is important
because Transformation and Change Programs usually have performance targets and aims from a
business perspective, and to attain those targets and aims usually requires building new capabilities,
and building the Maturity level of some existing capabilities. It must do this in order to achieve the
target business and change objectives within the desired time-frames.
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What new insights does Unitary Developmental Theory bring to
understanding Capability Maturity Levels?
By understanding the existing Maturity level (Learning Level) Change and Transformation actions can
be calibrated to assure they gain sustainable traction and build Agility, as the identified Capabilities
are built through the Capability Development Process/Roadmap.
Research that led to UDT identified that the lower Maturity Levels (OrgCMF™ levels (1-3)/7) are
disintegrative, and do not have the ability to take on board change without support and assistance.
Reviewing each stage of the Development Roadmap for the Measured entity or capability from Level
1 to ensure all foundation Capabilities are in place is a key requirement at these lower levels of
Maturity.
Equally the higher Maturity Levels (OrgCMF™ Levels (5-7)/7) are integrative and have the capacity to
take on board change without significant additional support at the measured level’s development
guidance.
Maturity Level 4 (Operational) is borderline and may be either Integrative or Disintegrative and
special care needs to be taken when implementing change actions at this level validating all
Capability indicators for that level are in place.
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What is a Capability Maturity Model?
A reference model in systems, organisation, and engineering is an abstract framework or domain-
specific ontology consisting of an interlinked set of clearly defined concepts, produced by an expert
or body of experts in order to encourage clear communication. A reference model can represent the
component parts of any consistent idea, from business functions to system components, as long as it
represents a complete set. This frame of reference can then be used to communicate ideas clearly
among members of the same community.
A Capability Maturity Model (CMM) is a Reference Model that represents a defined Organisation
System and/or sub-system, which identifies and defines each Capability and its building blocks for
every Maturity Level on a defined and accepted Maturity Scale. Thus, enabling users of the model to
identify the relevant Capabilities to their business aims and objectives, assess their existing maturity
levels and improve those capabilities to target maturity levels they deem important to achieve their
objectives.
What is a Capability Maturity Framework?
A reference framework is a Body of Knowledge, Reference Model, Guides, Tools, Platforms and
Standard that represents researched and practiced approaches that reflect shared learning and best
practice in an ecosystem or domain.
A Capability Maturity Framework (CMF) is a set of artefacts and tools that enable a user to identify
the current capability maturity of their Organisation, Team, Function, Capability and its Capability
Building Blocks (Micro Capabilities), identify new capabilities required and maturity level
improvements required to achieve a specific output and outcomes. A Framework normally includes:
-
• A Capability Maturity Reference Model
• A Body of Knowledge
• A means to Measure or Assess Maturity against the Model
• A Methodology to integrate Capability Improvement into Transformation, Change or
Improvement Programs
• A Maturity Development process for every Capability and the levels of the Model overall
• Supporting evidence of the management science that underpins the CMM
Choosing a Capability Maturity Model and Framework
The selection criteria for the Reference Model should include:
• Based on independent & objective scientific research.
• Normative reference base (measurement standard).
• Accessible, Useful & Usable by Industry & Professionals.
• Community led Application and Development
• Value Added Ecosystem for derived knowledge and tools
• Represent latest Knowledge & Best Practice
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The ‘Reference Model & Framework’ should be chosen to support the specific Improvement,
Change or Transformation objectives of the organisation, and connect both investment and action
with achieving those objectives.
Whether it’s a tactical, short, or long-term strategic initiative, the use of the Model & Framework
should guide the user Organisation, Teams and Individuals on the appropriate priorities, actions and
impacts expected, day to day and over the long term. A good Model & Framework helps individuals
and teams deal with the sophistication, complexity and interrelationships within and Organisation
System.
Using a Capability Maturity Model & Framework
A Reference Model & Framework is about providing useful and accurate information to the
Organisation, Teams & Individuals if and when they need it, to achieve their target aims and
ambitions in a sustainable manner, reducing risk and enhancing successful outcomes. It does this by
helping provide answers to questions like?
• What is our current performance and why?
• Where do we need to start?
• What are our priorities?
• Have we missed anything?
• What capabilities do we need to achieve our aims and objectives?
• What tactical and/or strategic investment/actions should we take?
• Are we progressing? & How well are we progressing?
• How do we compare with XXX?
• How do we overcome or improve YYY?
There are two critical Information components in a ‘Reference Framework’ that assure its value to
Organisations, Teams & Individuals.
1. Body of Knowledge
2. Measurement (Assessment)
An additional component of Information comes from the Organisation’s own knowledge and
competence, which is the 3rd and final essential component that enables the realization of the
Framework Value.
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A high-level view of a Capability Maturity Improvement Methodology
The Organisation Capability Maturity Framework
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The Three Reference Models & Bodies of Knowledge
• The Organisation Maturity Index (OMI)
• The Team Maturity Index (TMI)
• The Digital Maturity Index (DMI)
The Organisation Development Tools Institute
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OrgCMF™ Improvement Roadmaps
OrgCMF™ Benefits
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Get Started with OrgCMF™
Register on OrgCMF™ Digital Platform
• Complete the short registration (email and set your password)
• We will assign ‘Privileged’ Account Status within 24 hours
• You will then have
o Full access to all three Reference Models and their bodies of knowledge
o Access and take the short familiarisation videos
o Unlimited access to select or configure your own Maturity Assessments
o Run Capability Maturity Assessments and access Real-time reports and action
guidance
Examples of Capability Maturity Frameworks
There are many examples of Capability Maturity Frameworks and Capability Maturity Assessments
offered. Beware of the proprietary company versions that may not be adequately informed by
independent scientific research. The IT sector is well serviced by models as you will see below from a
few examples, these ones tend to be ‘Technology’ or ‘Technology Management’ centric.
CMMI
Capability Maturity Model Integration is a process level improvement, training and appraisal
program. Administered by the CMMI Institute, a subsidiary of ISACA, it was developed at Carnegie
Mellon University. It is required by many U.S. Government contracts, especially in software
development. It helps organizations streamline process improvement and encourage productive,
efficient behaviours that decrease risks in software, product and service development.
COBIT
COBIT is a framework created by ISACA for information technology management and IT governance.
The framework defines a set of generic processes for the management of IT, with each process
defined together with process inputs and outputs, key process-activities, process objectives,
performance measures and an elementary maturity model.
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IT-CMF
The IT Capability Maturity Framework (IT-CMF) created by the Innovation Value Institute an Irish
Government sponsored technology research centre at Maynooth University, is a model that
evaluates and improves an enterprise's information technology (IT) capabilities. The origins of IT-
CMF can be traced back to when Intel IT undertook a transformation to quantify and demonstrate
the true value impact of IT.
Prosci Change Management Maturity Model
Prosci's Proprietary Change Management Maturity Model describes the varying levels of change
management capability across organizations. The maturity model has five levels or stages, from no
change management to organizational competency. Each level involves more attention and
management of the people side of change.
PMI Maturity Model
The PMI Model is designed to help organizations assess the state of their organizational project
management maturity by assisting them in understanding organizational project management, its
maturity, and how to assess themselves.
Capability Maturity Management Glossary
Use Cases
Personal Familiarisation:
• Objective: To understand how OrgCMF assessment works, and the potential
value it might have for your organisation.
• Approach: Select a sample dynamic or Assessment, complete the assessment
and review report.
• Sample size: 1
Organisation Familiarisation & Validation:
• Objective: To understand how OrgCMF assessment works, and the potential
value it might have for your organisation.
• Approach: Invite participants to complete trial Assessment, and review report.
• Sample size: Up to 5
Leadership Alignment:
• Objective: To facilitate the leadership’s understanding, and discussion of existing
organisation maturity, and its impact on performance, or in advance of a
proposed change to align stakeholders and inform the change plan.
• Approach: The leader and/or leadership team selects relevant dynamic(s) or
Assessment, completes the assessment and reviews report.
• Sample size: All (Max 20)
Key Staff Alignment:
• Objective: To facilitate key stakeholder’s understanding, and discussion of
existing organisation maturity, and its impact on performance, or in advance of a
proposed change to align stakeholders and inform the change plan.
• Approach: The leader and/or leadership team selects relevant dynamic(s) or
Assessment, completes the assessment and reviews report.
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• Sample size: All (Max 20)
Specific Business/Operational, Issue/Opportunity:
• Objective: To identify those capabilities that may need maturity improvement to
assure successful change outcomes, and to calibrate change program, and
actions to achieve traction and sustainability.
• Approach: The leader and/or leadership team selects relevant dynamic(s) or
Assessment, completes the assessment and reviews report.
• Sample size: Use statistical sample size calculator (Recommended 95%
confidence level & 5% Margin of error).
• Repeat Assessment: Generally, no more frequent than 90 days, and no less
frequent than 270 days, depending on the context.
Transition/Transformation (Readiness):
• Objective: To identify those capabilities that need maturity improvement to
assure successful Transition/Transformation outcomes, and calibrate change
program and actions to achieve traction and sustainability.
• Approach: The leader and/or leadership team selects relevant dynamic(s) or
Assessment, completes the assessment and reviews report.
• Sample size: Use statistical sample size calculator (Recommended 95%
confidence level & 5% Margin of error).
• Repeat Assessment: Generally, no more frequent than 90 days, and no less
frequent than 270 days, depending on the transformation plan.
Continuous Improvement:
• Objective: To allocate ownership for capability building and improvement. _To
implement a consistent approach across the organisation, that can motivate and
be program manage4. _To address all core organisation capabilities that support
continuous improvement in performance of the organisation.
• Approach: The leader and/or leadership team selects relevant dynamic(s) or
Assessment, completes the assessment and reviews report.
• Sample size: Use statistical sample size calculator (Recommended 95%
confidence level & 5% Margin of error).
• Repeat Assessment: Generally, no more frequent than 90 days and no less
frequent than 270 days.
Internal Benchmarking:
• Objective: To identify points of misalignment of capabilities which impact
performance. To motivate constructive competition, and set targets/standards
for improvement. To improve awareness of performance, and the value/impact
of improved capability maturity.
• Approach: The leader and/or leadership team selects relevant dynamic(s) or
Assessment, completes the assessment and reviews report.
• Sample size: Use statistical sample size calculator (Recommended 95%
confidence level & 5% Margin of error).
• Repeat Assessment: No more frequent than 120 days and no less frequent than
365 days.
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External Benchmarking:
• Objective: To understand, compare relative maturity levels and related
performance between organisations of interest. _To motivate constructive
competition, and set targets/standards for improvement. _To improve
awareness of performance, and the value/impact of improved capability
maturity relative to competitors.
• Approach: The leader and/or leadership team selects relevant dynamic(s) or
Assessment, completes the assessment and reviews report.
• Sample size: Use statistical sample size calculator (Recommended 95%
confidence level & 5% Margin of error).
• Repeat Assessment: No more frequent than 120 days and no less frequent than
365 days.
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Chapter 5: Digital Maturity Index (DMI)
DMI Model (M1)
The Digital Maturity Index (DMI) is a Reference Model that describes the Digital Effectiveness of an
organisation and how well Digital contributes to the organisation’s performance, based on Unitary
Developmental Theory. It outlines the critical Organisation, Team, and Individual Digital Capabilities
and their Maturity levels and provides a roadmap for successful Digital Change & Transformation.
Model Level (M1): DMI Maturity Index
Maturity Level Traits for Maturity Level Development Focus for Maturity Level
(Action Calibration)
1
Crash
The organisation does not have a
clear Digital Strategy. What
Digital technology does exist, is
not used, or is used incorrectly,
and it is degrading the
organisations performance.
Employee Digital literacy is low
and this is a barrier to Digital
Change. (Digital Decay)
A Leader takes responsibility for creating
awareness of the organisations Digital
Business and Technology shortfalls by
making clear, 'Business as Usual' cannot
continue, and engaging with a critical
network of Organisation Leadership,
Team Stakeholders and Team members
who commit to creating a plan for
change across the 6 critical dynamics for
Digital effectiveness (Resuscitate)
2
Critical
The organisation seems locked
into the existing technology
and/or a legacy vendor. The
existing technology, processes
and supplier(s) are cumbersome
to work with, and may be
dependent on specific individuals
and/or suppliers to make
changes. There is a degree of
frustration expressed by users and
pressure for improvement (Digital
Laggard)
A Critical Network of employees are
committed to effect Digital Change and
Transformation. An understanding of
existing Digital technology and new
technologies should be developed by the
Critical Network. The Leader seeks inputs
from Organisation stakeholders to create
a Digital Transformation Agenda & Plan
to change the technology focus and
investment, in the organisation. An
inventory of existing and potential future
Digital Assets is prepared and evaluated.
(Reawaken)
3
Comfort
Stakeholders are familiar and
comfortable with existing
(Legacy) Digital Technology and
consider it fit for purpose, yet
there is an emerging consensus
from a critical network that, to
'future proof' the organisation,
significant changes must be
evaluated and a strategy and plan
put together which strengthens
the Organisations Performance
and Value proposition (Digital
Complacent)
The Leadership team must review the
potential Change and Transformations,
and establish the extend of the changes.
Business Model, Operating Model,
Products & Services and key processes.
The critical network of champions should
engage with all stakeholders to
understand their personal and business
needs, expectations, and level of
engagement in mobilising any changes.
Technical and Architecture expertise
must be in place to support technology
selection and deployment to achieve the
target business outcomes, and operation
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policy and procedure supported by
training put in place (Renovate)
4
Operational
The Organisation has processes,
systems and governance that
support technology adoption &
changes. These processes are
followed. Technology Issues get
reported, tracked and addressed
in order of priority. Users are
notified when changes are
planned and training is provided
relating to changes (Digitized)
In defining and planning Digital change
options, internal and external
users/customers/stakeholders must be
engaged appropriately from Vision,
Design, Planning to Implementation and
Operation. Agile and DevOps techniques
may be adopted as appropriate.
Adoption of New and emerging
technologies Cloud, Social Media,
Analytics, AI etc. and related changes
should be implemented as per plans, and
related Digital workplace changes taken
into account. Build Cyber Security and
Personal Data Protection Capability.
Relationships between stakeholders
should be strengthened via Digital
techniques. (Refocus)
5
Competitive
There is a culture of internal and
external customer focus. Digital
Technology is leveraged to
engage in ecosystems and
markets. Data and Information
are captured and analysed to
guide Customer, Operational and
Product Management.
Technology is managed with the
same focus and Agile/Lean
techniques are used to enhance
responsiveness and performance
with automation where feasible.
(Digital Transitioned)
The Organisation looks internally and
externally to best and latest technologies
& their application. Users should be
empowered through training and support
to configure and exploit existing and
emerging technology and data, relevant
to their Roles & Performance. The on-
going strategic and tactical relationships
are developed to be Digital centric
leveraging Collaboration, Analytics and
AI tools to personalise and automate
activities and improve performance. (Re-
energise)
6
Advantage
The organisation has advantage
over the competition or is the
benchmark through Technology
adoption and management. This
maybe in the form of Operational
Efficiency, Customer Intimacy
and/or Product Leadership.
Customers and users are engaged
in, and influence how the
organisation leverages and
changes its technology to meet
user, customer needs and
responds to VUCA opportunities.
(Digital Transformed)
Teams and Individuals are enabled to
Innovate and rapidly adapt to any
emerging data and information internally
and externally. Leverage investment in
Digital to reduce cycle times, cost, and
non-conformance and increase internal
and external Product & Service Value and
Value propositions. Encourage the
engagement of new ecosystem and
ecosystem participants in all aspects of
the value chain to achieve market
disruption, customer intimacy,
acquisition and retention. Operational
excellence and product leadership.
(Release)
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7
Leadership
Digital Technology is central to
the organisation’s performance
and success. The organisation is
seen as a benchmark internally
and externally. The organisation
influences and facilitates Digital
Ecosystems critical to its Supply
and Value Chain from Innovation
through to Product/Service
Delivery/Consumption. Spin offs
emerge from the Organisation
and its Ecosystems as do new
Joint Ventures. (Digital Leader)
Promote the organisations achievements
externally and continually review and
adapt to emerging information seeking
to identify new opportunities (e.g., Spin
outs, JVs, M&A) Be seen to be a leader in
technology application and data
exploitation while maintaining trust and
confidence of stakeholders in the
organisation’s Digital footprint. Seek to
re-configure Business & Operational
Models, Products and Services to create
new Value Propositions combining and
disconnecting from ecosystem elements
and value chain contributors to maintain
dynamic performance leadership
(Regenerate)
The DMI comprises of six ‘Dynamics’ (Macro Capabilities)
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DMI Dynamics (M2) - Macro Capabilities
Digital Strategy – (Value Planning)
Digital Strategy involves setting the organisation's goals, determining actions to achieve the goals,
and mobilizing resources to execute the actions, often under conditions of uncertainty. A strategy
describes how the ends (goals) will be achieved by the means (resources). The Digital Strategy
Dynamic relates to where the organisation is going, and how it is going to get there and how
technology enables achievement of the organisation's aims and ambitions.
Dynamic Level (M2): Digital Strategy
Maturity Level Traits for Maturity Level Development Focus for Maturity Level
(Action Calibration)
1
Crash
There is an absence of a Digital
Vision, Mission, Goals, Values and
Structure in the organisation, or
where it exists, we have had little
involvement or awareness in
influencing it. Therefore, it has
limited understanding, meaning, or
benefit, and in fact may be damaging
to the organisation.
A leader (change agent) champions and
energizes stakeholders with a new vision of
the organization in a more Digital world, and
generates a Critical Network (CN) of key
people so motivated including the Leader, as
well as other critical roles that may be
filled/strengthened with similarly motivated
people. Strong communications process
acknowledges required change, disconnects
from past. Objective outside help may be
used to engage and build the values and
commitment to change and develop a plan to
grow Digital Maturity through the Phases.
2
Critical
The Digital Vision, Mission, Goals,
Values and Structure seem ad-
hoc, unrealistic, and somewhat
reactive. They are prescriptive
from the top, with narrow
involvement outside the top team.
They provide limited guidance or
motivation and the approach
seems to continually change.
The leader is seen to champion and take
accountability for the agreed Digital
change plans, moving from rescue mode
to turnaround mode. The Critical
Network (CN) are seen to take
responsibility for implementing the
Digital Transformation plan. Totem wins
are achieved and celebrated.
Experimentation is enabled towards
offering diverse Digital options that may
contribute to sustainable competitive
advantage. Ensure strategic competence
among the CN and all key roles to
support change, while a network of key
people is seen to live the values (Human
& Commercial).
3
Comfort
The Digital Vision, Mission, Goals,
Values and Structure are stable
but influenced by vested interests,
and lack ambition, or are
unrealistic. Involvement tends to
include those aligned with the
leadership, and year on year the
strategy is only tweaked. Rigid
structures are applied to controls
that have financial impact and
Everyone is engaged to discuss the Digital
Strategy process, and relevant Digital
Technology & Practices, and they are
brought to understand associated
procedures, environment scanning,
situation analysis, decision making and
resource allocation. Fears are addressed
and a sense of togetherness of purpose is
generated. Take stock of what is
emerging from the Experimentation and
resource people and projects with
Digital Business Transformation and Improvement Pocket Book (Edition 2)
www.orgcmf.com
Pocketbook Edition 2
little attention is paid to stated
Digital Values.
strategic potential, while misaligned
resources are reassigned or retired.
4
Operational
There is diverse Functional
environment scanning across the
organisation and a process of
senior staff engagement in
analysis and setting the Digital
strategy. Change is influenced by
the strategy, with general
alignment on the Goals, Process
and Values. The structure is
adapted to day-to-day
organisation learning. There is a
degree of stability and alignment
around the Digital strategy.
Implement all required personal
development and training required for
the Digital strategy as well as
engagement in organic responsive and
anticipatory Digital Strategy generation.
Formalise all roles in alignment with
strategy. Ensure procedural functionality
and embedded digital process re.
environmental scanning, resource
allocation, management information,
etc. Implement structural change to
lowest number of levels.
5
Competitive
The Digital Strategy is a dynamic
process, with involvement from
across the organisation. It is
based on evolving learning and
needs of the organisation rather
than an annual event. The Digital
component is reflected in the
mission and conveys meaning and
differentiation to stakeholders.
The vision aligns and empowers
individuals and teams while the
values lubricate effective
implementation of the Digital
strategy.
Strategy process moves to being more
dynamic, organic & regenerative with
Digital at its heart. Vision & Mission drive
competitive focus, change and growth
with Digital Value integrated. Rewards
and Career aligned with competitive
results. Strategy is diverse, collegiate and
responsive, and the glue for this is the
Mission and how the structure ‘functional
and cross functional’ share and act on
Information and learning. Being Digitally
better than the competition and
exceeding internal and external customer
expectations becomes a shared value.
6
Advantage
Digital Innovation is the norm,
and can come from anywhere
within the organisation or
external stakeholders. The
systems, process and culture are
such that strategic changes can
be promptly implemented.
Dynamic collaboration is the norm
where people group to address
issues or opportunities, execute
change and assure the Aims are
achieved leveraging Digital where
appropriate. The vision and values
inspire action and are regularly
reviewed. External stakeholders
engage Digitally and the brand
encompasses the resulting Digital
value and advantage.
Strategy is formed from events and from
across the organisation and its levels. The
vision, mission and values empower and
inspire creativity and proactivity and the
ability to deal with complexity,
leveraging technology where
appropriate. Talent is released to create
advantage in strategies, process,
products and practices, leading to market
advantage. Resources, Relationships and
Culture accommodate new Digital
directions and see out improvement
opportunities. Structure is not
overprescribed to allow for agility and
self-direction and a collaborative culture
and capabilities. The organisation is
metrics driven with embedded process
control and governance.
7
Leadership
Our Digital Strategy, Performance
and Impact has led to our
organisation, products and people
being respected as Digital leaders
Awareness of the responsibility of the
Digital leadership position, and to grow
the position means that the leadership
must ensure all dimensions of the Digital
Digital Business Transformation and Improvement Pocket Book (Edition 2)
www.orgcmf.com
Pocketbook Edition 2
in our sector. Our ideals and
purpose, are open, and worthy for
both the sector and society in
general. Our Digital engagement
and influence with sector
stakeholders allow us to shape
the sector. Our culture and way of
work is agile and impactful day to
day and over the long term and
leverages new technologies &
relationships in the marketplace.
strategy (Vision, Mission, Involvement,
Values, Structure) must be monitored and
revitalised. Engagement of internal and
external stakeholders must be
maintained and their creativity
stimulated, while pruning out any role,
process, technology, product or practice
that does not contribute to Digital
Advantage or Leadership. The structure
extends beyond the organisation
boundaries into its ecosystems through
Digital, where it leads or leverages the
Digital resources and innovations of
others. Periodic DMI full or partial, type
assessment on some or all of the
organisation can stimulate continuous
improvement and Innovation. Digital
Ecosystem engagement and environment
scanning is embedded to continually
grow and exceed customer and market
expectations and future needs driven by
performance management and ambition.
Digital Strategy Constructs (M3 - Micro Capabilities)
Digital Business Model (DBM)
The net additional economic value for the organisation, created by its effectiveness in leveraging
internal and external Digital resources and eco-systems, in providing Offerings to Customers.
Access to Digital Resources (DAR)
The ability of the Organisation to access all resources required to plan and execute a Digital Strategy
Performance & Benefits Management (DPB)
The effectiveness of the Leaders in managing the Organisation, Team, and Individual Digital
Performance
Innovation & Experimentation (DIE)
The extent of Digital Innovation & Experimentation across the Organisation that leads to successful
value creation
Governance & Risk Management (DGR)
The effectiveness of managing Digital Change & Transformation to assure target performance and
outcomes are achieved
Digital Ecosystem Exploitation (DEE)
The ability to engage, influence and/or control Digital Ecosystems to create value
Digital Business Transformation and Improvement Pocket Book (Edition 2)
www.orgcmf.com
Pocketbook Edition 2
Digital Workplace - (Value Creation)
The Digital Workplace describes how, and where Employees & Stakeholders implement the
organisations plans, carry out their roles and activities, engage with technology, stakeholders, teams
and ecosystems in the context of a modern technology enabled business.
Dynamic Level (M2): Digital Workplace
Maturity Level Traits for Maturity Level Development Focus for Maturity Level
(Action Calibration)
1
Crash
The workplace has not moved with
the times, there is little use of
Technology or Automation. Jobs and
tasks reflect traditional Industrial age
structures. Productivity, Motivation
and Job satisfaction are relatively
low. Work resourcing and work
management is either over managed
or chaotic, and work output
unpredictable and/or unrequired.
The Leader / Change Agent creates amongst
a network of Critical People representative of
all stakeholders (CN), the desire to change
the work and related work activities,
leveraging New Technology Vision, or
Diagnostic, etc., to create Disorienting
Dilemma that the workplace cannot continue
as is. Then (S)he gets them to commit to
rejecting the past and then facilitates them as
a planning team, to plan the development of
the Digital workplace through the DMI
Phases starting with addressing resources
relative to what is required for success,
designing workflow, roles, forging new
relationships with suppliers, customers, etc.
2
Critical
The organisation has some
computers/machines and these are
used for certain roles. Some people
were/are trained to use the
technology we have, and we go to
them if we need something changed.
The systems’ impact the flow of work
and certain work activities and these
are often interrupted due to
problems. The technology we use is
old and we use it in the way it was
originally designed or intended.
The Leader is seen to champion and take
accountability for the agreed Change Plan to
develop the Digital Workplace. The Critical
Network (CN) are then seen to take
responsibility for implementing the plan and
whatever competence is needed to manage it
among the network is acquired through
either training or recruitment.
3
Comfort
We have the technology we need to
carry out our roles and work
activities. Its reasonably stable and
there is technical support available
when we need it. Though we can see
some opportunities to better use it,
and that new technologies would
improve my job/our team/ the
organisation’s performance, there is
no incentive to make the changes
and no one seems to care.
The Critical Network (CN) engage the people
with the plan through communications,
workshops, etc., to raise their issues first
around the Social (togetherness with
purpose) issues, and then the Emotional
(fears, etc.,) issues. The CN challenge the
People and some will emerge who can be
engaged in the CN. Some opportunities may
seem good candidates to pilot the new
technology applications, starting with the
next Phase of Training and implementing
process, procedure, information systems at
procedural functioning, etc. Implement a
Social Platform system
4
Operational
The organisation uses automation
and uses computer systems to
Design, Build and Deliver our
Products and Service. Where there is
a Quality, Cost or Productivity benefit
This Level is always about creating an
internal fitness for purpose, so competence is
raised to required levels through Training and
Personal Development so that people can
achieve Agility of function in the new
Digital Business Transformation and Improvement Pocket Book (Edition 2)
www.orgcmf.com
Pocketbook Edition 2
for an individual, team or process.
Supported by a business case
technology gets upgraded or new
technology procured. ERP and Office
Productivity tools and systems are
built into our operational processes
and we are trained to use them.
Dynamic Digital Workplace of the next Phase.
Then, all related process and procedure are
implemented with everyone knowing and
competent for their roles. All changes to IT,
e.g., data processing, workflow mgmt., mgt.
info, Performance Mgt., Resource Allocation,
Project Mgt., etc., is implemented
5
Competitive
The organisation invests in keeping
its technology current where it
delivers performance benefit for
individuals, teams and the
organisation overall. The use of
resources of the organisation are
optimised through leveraging Digital
Technology and Process Automation.
There are processes in place to
continuously improve our
performance and the use of
technology and we are encouraged
to suggest and implement changes
and improvements. We are trained to
use the Digital and Technology
resources available to be effective
and efficient. The majority of roles
and tasks leverage technology and
staff maintain competitive skills and
competence.
The Dynamic Digital Workplace is the lower
level of Agile Workplace. Each worker is
digitally enabled to connect to any other
stakeholder in the system from customer to
supplier, work colleagues, knowledge
providers, problem solvers, etc., and each
person is incentivized to resolve issues that
make the system more effective than the
competition. The broader the scope of the
enabling Platform the better. Implement
Customer Relationship Management system
that allows dynamic learning of customer
issues and needs and Environmental
Scanning. The key move in this Phase is to
shift from a sense of organization as
bureaucratic system to dynamic eco-system
6
Advantage
Our unique technology, or application
of technology gives the organisation
its advantage either its Product,
Operations or Customer Intimacy.
The organisation invests in protecting
& maintaining its technological
advantage innovating how it can
improve. All systems of business,
Record, Productivity and Engagement
are maintained at latest levels and
reviewed and updated. Anything that
can be automated is automated, and
careers, job roles and tasks are such
that they develop individuals and
provide variety and significance to
the work people do and their value in
the system overall
The Advantaged Digital Workplace is the mid-
level of Agile Workplace. Time and space are
given to Innovation and the production of
novel solutions generated from the Dynamic
system of the previous Phase. The difference
is that people and teams are afforded
autonomy to set goals re. Innovation that
brings something novel to the workplace
and/or market. Gainsharing and Autonomy
combined produce exceptional results in
Innovation. Emphasis is maintained on
platform innovation. Implement a
Collaborative Platform that engages sources
from within and outside the organizational
system to further Innovation
7
Leadership
Our organisation is seen as a leader
who innovates and exploits
technology, and our staff at all levels
have advanced leading competencies
and are comfortable working in and
with new and emerging technologies.
Individual, team and organisation
Products, Services, and Customer
satisfaction are seen as leading and
The Leadership Digital Workplace is the
highest level of Agile Workplace.
Autonomous Teams may become Spin-Off
Enterprises who bring their own Digital
Workplace to the new Enterprise. For the host
system, this Phase is about achieving
relationships that are both in the
organization's favour but in the long-run
interests of all concerned. Also, regularly
Digital Business Transformation and Improvement Pocket Book (Edition 2)
www.orgcmf.com
Pocketbook Edition 2
Agility, Productivity and Resilience
are continually refreshed. Staff
competencies, roles and activities are
enriched through the organisation’s
commitment to Digital Leadership in
the workplace.
refresh the workplace through a cyclical
application of the programme starting with
performance assessment, disconnecting what
is not satisfactory, re-purposing the plan, etc.,
etc., through the rest of the Phases
Digital Workplace Constructs (M3 - Micro Capabilities)
User Engagement & Experience (DUE)
The effectiveness of Digital user engagement, and the influence the user has on the design and
operations of the Digital Workplace
Work Design & Enrichment (DWD)
The Organisation's Capability to enhance the attitude towards, and the motivational value of, the
Digital Workplace for stakeholders
Digital Literacy & Competence (DLC)
The level of Digital Skills and Abilities of stakeholders that enable them to participate in the design &
operation of the Digital Workplace
Digital Team Effectiveness (DTE)
The Performance and Experience of Teams in exploiting the Digital Workplace (Virtual & Hybrid)
Remote & Virtual Working (DVW)
The management and Effectiveness of Remote Working, Virtual & Hybrid Teams
Attitude to Change (DAC)
The attitude of stakeholders towards Digital Change in the organisation its ecosystems and
workplaces
Digital Business Transformation and Improvement Pocket Book (Edition 2)
www.orgcmf.com
Pocketbook Edition 2
Digital Offering - (Value Proposition)
The Digital Offering includes the Products & Services the Organisation Provides, how they are
Presented, Provisioned and Consumed as they relate to the use of technology to create advantage
and value.
Dynamic Level (M2): Digital Offering
Maturity Level Traits for Maturity Level Development Focus for Maturity Level
(Action Calibration)
1
Crash
Our Products and Services, and how
they are promoted and delivered
have not changed in a long time, and
demand is declining and we are now
uncompetitive. Our performance is
degrading due to this situation. There
seems to be little interest in adopting
technology to improve our offering
The Leader/Change agent initiates a dialog
amongst a critical network (CN) of
stakeholders who share dissatisfaction with
the current Offerings. This group establishes
a consensus amongst key influencers that the
existing line up of Products and Services
and/or How they are presented or Consumed,
are no longer viable or sustainable. Initial
commitment is attained to build a new
approach to product management and a new
product and services plan, and that this will
be done through the development phases on
this DMI model starting with any initial
resource and training to proceed.
2
Critical
We have one
Product/Customer/Market for our
Digital Offering which has limited
advantage or differentiation. We
continually change our approach to
broaden appeal but this is largely
ineffective. There is no strategy for
Digitizing our
Offering/Business/Organisation
The Leader/Change Agent with the support of
the Critical network takes responsibility to
prepare an initial Offering (Products/Services)
Strategy and Plan. Key stakeholders are
directly engaged by the Leader to secure buy-
in and support, and awareness is created
across the organisation of the emerging
approach and product management plan.
Stakeholders must be put as ease as to what
is likely to happen, how they will be updated
and engaged, what the current unknowns
are, and what training and supports will be
included
3
Comfort
Our Offering gets updated
periodically adopting similar
approaches and technologies to our
competitors. Our current customers
seem satisfied and there is no
pressure to change our positioning,
products or provisioning.
Through Communications, Workshops and
Social Platforms, staff and relevant
stakeholders are engaged in a dialog to
address any concerns they may have, provide
them with data and information that
reinforces the benefits for Digital Change and
seeks their inputs. Stakeholders must be put
as ease with the New Offering Strategy and
Planning approach. Initial Process,
Procedures, familiarisation and training
should be planned and implemented so they
become part of the Organisations Digital
Product agenda. Some pilot or proof of
concept opportunities may be suggested.
4 We have a Product release and
management process and plan. R &
Structures, Systems, and Resources are put in
place with responsibility for leveraging Digital
Digital Business Transformation and Improvement Pocket Book (Edition 2)
www.orgcmf.com
Pocketbook Edition 2
Operational D, Marketing and Operations follow
that plan and we adopt new
technology as appropriate to
Positioning in the Market, The
Solution our Market needs and
Delivery of our Offering.
internal and external information on
Customer and Market needs. Social and
Collaboration Platforms and groups across
internal and external Digital ecosystems
created to identify Customer and Market
needs for inclusion in Product and Services
Roadmap and development plans.
Crowdsourcing and Innovation jams should
be considered as a means to expand the
Organisations Knowledge, Capability and
Capacity. Test, Beta & Release processes and
plans documented, and systemised to assure
reliable delivery of new Digital Offerings to
the Market place
5
Competitive
Our Feature, Functions and Service
levels for our offerings are
competitive in the market place. We
have adopted best practice in the
adoption of Digital Technology and
use it to engage with our Market and
Customers to plan, provision and
update our Offerings
Individuals and Teams should be empowered
to Innovate, and Agile techniques introduced
with appropriate training and engagement
across the full product life-cycle management
spectrum. Skunk works should be supported
where appropriate to become familiar with
and trial emerging technologies and
platforms and how they might contribute to
current and future Product advantages and
competitiveness. Customers, Suppliers,
Partners and other 3rd parties enabled to
participate in Design & development of
Offerings.
6
Advantage
We have extensive digital systems to
engage in our Markets and with our
Customers. Our products and Services
are personalised and adapted to
meet specific customer and market
needs. Our Products and Services
have a significant advantage over our
competitors in one of the key Value
Disciplines. Product Leadership,
Customer Intimacy or Operational
Excellence
New and Changed Products and Services
include new and emerging technologies,
leverage open and proprietary data, include
Simulation, Digital Twins, AI, AR, VR where
appropriate to shorten time to market and
maximise value over their life cycle. Product
life-cycle extensions included in Roadmap and
plans. Experiment with New Business,
Operating and Capability Models enabled by
emerging technologies.
7
Leadership
Our Offerings are seen as market
leading through the effective
selection and deployment of
technology and early adoption where
appropriate. Our engagement,
leverage and influence of related
Digital Ecosystems provides us with
early visibility of opportunities and
we continually review our proposition
and potential to spin out
products/services and to collaborate
and JV with others to innovate new
Offerings and find new Markets.
Offering leadership (Products & Services)
must be maintained by continuous scanning
(Digitally) to understand new customer,
market, environment and ecosystem.
Collaborations with Innovators in Industry
and Academia as well as contributions to
regenerate Offering propositions and spend
off new ventures that support new offerings
and new markets.
Digital Transformation & Improvement Pocketbook
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Digital Transformation & Improvement Pocketbook
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Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
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Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
Digital Transformation & Improvement Pocketbook
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Digital Transformation & Improvement Pocketbook
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Digital Transformation & Improvement Pocketbook

  • 1. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Best Practice Body of Knowledge How to Plan & Implement Digital Change? Digital Business Transformation & Improvement Pocket Book A Comprehensive Reference Guide for both Technical & Non-Technical Managers & Professionals. Technologies & Buzz Words explained What does Digital Transformation involve? Essential Digital Business Capabilities How to Assess Readiness & Progress?
  • 2. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Table of Contents Chapter 1: Introduction................................................................................................................6 Author & Principal Investigators.........................................................................................................6 Prologue..............................................................................................................................................6 Purpose ...............................................................................................................................................8 Chapter 2: Overview of Digital Transformation and Change......................................................... 10 The Nature of Digital Change............................................................................................................10 The known challenges of Digital Transformation .............................................................................11 Change and Transformation Capability Improvement .....................................................................13 Chapter3: The Digital Technologies & Buzz words?...................................................................... 14 Software Stack ..................................................................................................................................14 Applications.......................................................................................................................................15 Software Platform.............................................................................................................................16 Social & Media ..................................................................................................................................16 Data & Security .................................................................................................................................17 Hardware Perimeter .........................................................................................................................18 Connectivity & Cloud ........................................................................................................................19 Main Hardware .................................................................................................................................20 Models & Methods ...........................................................................................................................20 Backbone & Legacy...........................................................................................................................21 Digital Ecosystems.............................................................................................................................22 Chapter 4: Capability Maturity Management .............................................................................. 24 What are Capability Maturity Models & Why are they important?.................................................24 What are Business & Organisation Capabilities?..............................................................................24 Why is understanding Capabilities useful?.......................................................................................24 What are the Relationships between Capabilities, Competences, and Processes? .........................25 Why is it often a challenge to understand how an organisation functions, performs, and to make successful changes?..........................................................................................................................25 An Example of a list of Digital Organisation Capabilities (DMI™ Reference Model) ........................26 What is a Maturity Level? .................................................................................................................27 What new insights does Unitary Developmental Theory bring to understanding Capability Maturity Levels?...............................................................................................................................................28 What is a Capability Maturity Model?..............................................................................................29 What is a Capability Maturity Framework? ......................................................................................29 Choosing a Capability Maturity Model and Framework...................................................................29 Using a Capability Maturity Model & Framework ............................................................................30
  • 3. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 A high-level view of a Capability Maturity Improvement Methodology ..........................................31 The Organisation Capability Maturity Framework ...........................................................................31 The Three Reference Models & Bodies of Knowledge .................................................................32 The Organisation Development Tools Institute................................................................................32 OrgCMF™ Improvement Roadmaps .................................................................................................33 OrgCMF™ Benefits ............................................................................................................................33 Get Started with OrgCMF™...............................................................................................................34 Examples of Capability Maturity Frameworks..................................................................................34 CMMI.............................................................................................................................................34 COBIT.............................................................................................................................................34 IT-CMF...........................................................................................................................................35 Prosci Change Management Maturity Model...............................................................................35 PMI Maturity Model......................................................................................................................35 Use Cases ..........................................................................................................................................35 Personal Familiarisation:...............................................................................................................35 Organisation Familiarisation & Validation:...................................................................................35 Leadership Alignment:..................................................................................................................35 Key Staff Alignment:......................................................................................................................35 Specific Business/Operational, Issue/Opportunity:......................................................................36 Transition/Transformation (Readiness):.......................................................................................36 Continuous Improvement:............................................................................................................36 Internal Benchmarking:.................................................................................................................36 External Benchmarking:................................................................................................................37 Chapter 5: Digital Maturity Index (DMI)...................................................................................... 38 DMI Model (M1) ...............................................................................................................................38 DMI Dynamics (M2) - Macro Capabilities .........................................................................................41 Digital Strategy – (Value Planning)................................................................................................41 Digital Strategy Constructs (M3 - Micro Capabilities)...................................................................43 Digital Workplace - (Value Creation) ............................................................................................44 Digital Workplace Constructs (M3 - Micro Capabilities)...............................................................46 Digital Offering - (Value Proposition)............................................................................................47 Digital Workplace Constructs (M3 - Micro Capabilities)...............................................................49 Customer Intimacy - (Value Source) .............................................................................................50 Customer Intimacy (Digital) Constructs (M3 - Micro Capabilities) ...............................................52 Operating Model - (Value Structure) ............................................................................................53 Operating Model (Digital) Constructs (M3 - Micro Capabilities) ..................................................55
  • 4. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Technology (Value Enabler) ..........................................................................................................56 Technology (Digital) Constructs (M3 - Micro Capabilities) ...........................................................58 To view Construct (Micro-Capabilities) Development Roadmaps....................................................58 Other OrgCMF™ Models based on UDT............................................................................................59 The Organisation Maturity Index (OMI)........................................................................................59 The Team Maturity Index (TMI)....................................................................................................60 Chapter 6: Assessing Readiness & Progress for the Digital Journey .............................................. 61 Step 1: Initiate Capability Building Improvement.............................................................................61 Step 1a: Define the Transformation, Change and/or Improvement ............................................61 Step 1b: Define the Assessment Objectives .................................................................................62 Key Assessment Design & Configuration Considerations.............................................................62 Step 2: Review and Select the Appropriate Capability Maturity Assessment Reference Model. ....62 2a Login to your www.orgcmf.com User Account........................................................................64 Step 3: Select Assessment Type........................................................................................................64 Step 3a: Select Assessment Tier....................................................................................................65 Step 3b: Select Reference Model (If your Plan has more than one).............................................65 Step 4: Select Capabilities for Assessment (Dynamics) ....................................................................66 Step 5: Add Assessment Details & Participants................................................................................66 Step 5a Add Assessment Details...................................................................................................66 Step 5b: Participant Details, Save & Publish.................................................................................67 Step 5c: Completing an on-line Assessment (for Participants).........................................................68 Landing Page for Assessment Participants ...................................................................................69 Answering Assessment Questions................................................................................................70 Step 5d: Assessment Report (On-line, Real time).........................................................................70 Viewing Report..............................................................................................................................71 Step 6: Action Planning.....................................................................................................................73 Step 6a: Analysis and Discussion...................................................................................................73 Step 6b: Prioritisation of Capabilities for Building/Improvement ................................................73 Step 6c: Assignment and ownership of actions and Governance of Improvements........................73 Chapter 7: Methodology (Approach) for Leading & Managing Digital Transformation & Change... 74 Set Direction......................................................................................................................................75 C3 Catalyst, Context, Case..............................................................................................................75 Setting Direction for Digital Transformation - Summary (C3 ) .......................................................81 Manage Execution ............................................................................................................................81 (R3 = Right Things, at the Right Time, in the Right Way)...................................................................81 Capabilities to Manage Digital Business Transformation & Change.............................................81
  • 5. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Governance & Progress Monitoring .............................................................................................82 Where does the popular Agile Manifesto & Agile techniques fit in this recommended Digital Transformation & Change approach?...........................................................................................83 Sprints ...........................................................................................................................................85 Inform Action (Sprints)......................................................................................................................86 Digital Competence.......................................................................................................................86 Implementation Action Information Guidance.............................................................................87 Assessment, Measurement & Metrics..........................................................................................89 Chapter 8: Glossary.................................................................................................................... 90
  • 6. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Chapter 1: Introduction Author & Principal Investigators Declan Kavanagh DipEng, CDipAF, MBA Declan has over 40 years’ experience in technology business, initially with multinational ICT organisations holding a range of senior engineering and management positions, rising to CEO level. He founded a software services company in 2003 which was acquired by Capgemini/Sogeti in 2008. Since then, he has advised many organisations Nationally & Internationally and worked with Academia and Irish Technology Research Centres in the area of Starting, Scaling & Capability Building. During his career Declan Led and managed several significant Organisation Transformations and managed Change on an ongoing basis. In 2018 he co-founded the Organisation Development Tools Institute (ODTI) with Dr. Myles Sweeney. ODTI Researches, Develops and Provides a Digital Platform & Tools that help organizations’ plan and execute Incremental, Transitional and Transformational Change, based on Organisation Science and Unitary Developmental Theory. Dr. Myles Sweeney BA (Psychol.), MBS (Finance), PhD (Business/Economic Psychology) Dr. Myles Sweeney is a very experienced Organization-Development Consultant who has developed breakthrough models and tools to advance theory and practice substantially. He has been active in Ireland for 27 years across most sectors through his own business and as an associate for e.g., Grant Thornton, Century Management, Rigney Dolphin, Torc Consulting, etc. With support from Enterprise Ireland, he researched and developed Unitary Developmental Theory (UDT) modelling, which includes normative diagnostics and development for people, organizations and economies. This is enabled for organizations online as OrgCMF™ and promoted by the company Organization Development Tools Institute (ODTI) of which he is co-Founder/Director with the CEO-Level experienced Declan Kavanagh, and supported by DCU’s Business School. Previously, he had worked at with Allied Irish Banks, attained post-graduate qualifications across Psychology, Management and Finance, and lectured on subjects across these disciplines in University College Dublin, Dublin City University, Dublin Business School and All Hallows College. It is acknowledged that OrgCMF™ is the only Capability Maturity Framework based on an underpinning academic theory and it has advanced our understanding of how to reduce the high level of failure (70%+) that has existed in Change Management up to now. Prologue There is much written about Digital Transformation and what it is? And what Leaders, Managers and Staff should do? It can often be confusing for the non-technical person, and for that matter for some technology professionals also. The pace and nature of the emergence of new technologies and new technology applications will continue to accelerate, as will the volume of related Buzz Words and Acronyms. What will not change is the importance for all organisations to maintain awareness of existing and emerging technologies, and their potential impact on Business, Organisations, Teams, Activities, Roles and Skills, in order to be able to assess and adopt those technologies that have value for their stakeholders and stakeholder entities. Since the first commercial computers became available in the 1950s’, there has been an actual or perceived disconnect between the Business & the Technologists, sometimes referred to as Silos. Despite advances in both management and methods such as DevOps, Iterative Development, Agile, Collaboration and Budget Control models this misalignment, perception and related
  • 7. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 miscommunications still exist. I still hear the issue being raised formally and informally at Leading International ICT related Conferences as recently as Q1 2023. ‘They don’t understand what we have to do!’ is a much-quoted statement over the decades. This book is my attempt to demystify Digital and Digital Transformation, and make clearer the nature and language of Digital Transformation, Transition and Change, for both technical and non-technical people. In addition, provide some hints, tips, methods and tools that bring greater assurance that any investment in technology will achieve the desired business outcomes. Remember Digital (Technology) Change & Transformation must be driven by the Business, Organisation, Customer and User needs, with a view to achieving some related defined aims and objectives that relate to Value. It is significantly facilitated by Technology & Technology Professionals. If the book can achieve closer alignment, communications and collaboration between business and technology entities, and professionals, and improved Digital Transformation and Change outcomes, it will have achieved something of merit. Chapter 1: Introduction In this chapter the Purpose and Context of Digital Transformation and Change are introduced along with introducing the Author and Research Contributors. Chapter 2: Overview of Digital Transformation & Change In this chapter, the nature of Digital Change is presented covering the main Challenges, Opportunities and Capability Building. Chapter 3: Technologies & Buzz words In this chapter the language of Digital Transformation is presented along with a simple explanation of all the main Technologies, Services & Buzzwords. Chapter 4: Capability Maturity Management In this chapter the relevance and importance of Capability Maturity Development in Digital Transformation is explained and Digital Capability Maturity Frameworks introduced. Chapter 5: Digital Maturity Index In this chapter the Body of Knowledge and Capability Development paths are fully presented in detail for the six Digital Macro Capabilities (Dynamics) • Digital Strategy (Value Planning) • Digital Workplace (Value Creation) • Digital Offerings (Value Proposition) • Digital Operating Model (Value Structure) • Digital Customer Intimacy (Value Source) • Digital Technology (Value Enabler) Chapter 6: Assessing Readiness & Progress on the Digital Journey In this Chapter a process for Assessment and Measurement of an Organisation's or Team's Digital Capability Maturity is introduced and explained.
  • 8. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Chapter 7: Methodology (Approach) for Leading and Managing Digital Change In this chapters the steps and stages to effectively and successfully manage Digital Transformation & Change are introduced and explained. Chapter 8: Glossary In this chapter there is a glossary of terminology for Transformation, Change and Improvement Purpose Digital Transformation, Change & Improvements are business driven changes, which are enabled by existing & emerging technologies. Success or Failure in achieving the Organisations Goals for Digital Business Changes are usually determined by having in place the right Capabilities, at a right Level of Maturity at the right Time. It’s often down to the CIO and his/her team to drive Digital Transformation, Change & Improvement, and more and more they are influencing and contributing from a business perspective, as much as a technology perspective. There are several technology management centric Capability Maturity Models such as CMMI, COBIT, and IT-CMF which are examples that can guide Technology Leaders in their Digital Transformations and Changes. These are powerful Bodies of Knowledge when, looking at best practice from the ‘lens’ of the ICT professionals. But until recently there has been limited Reference Models for ‘Digital Business’ and ‘Organisation’ Transformation. That said even in today’s advanced organisations, the same challenges are raised, as they have been since the advent of the Computer ‘There continues to be mis-alignment between the Business and IT’, ‘Formal and Perceived Silos still exist’ Part of this challenge is down to the fact that Ownership of Digital Transformation, Change and Improvement is not shared across the business functions; Mutual Competence, Knowledge and Understanding of each other’s domains, are not in place at the appropriate level; and limited acknowledgement, that these Digital Changes are fundamentally Business & Organisation Development activities. Virtually all academic and Industry Analyst research publications over the years confirm that 70% of Change initiatives fail to meet their original objectives, despite advances in our understanding of Change & Change Management, and this applies equally to Digital Transformation & Change. 15 years ago, co-founder of the Organisation Development Tools Institute and renowned expert in the field of Organisation Psychology, Learning and Economics Dr. Myles Sweeney, set out to find the root causes of Change failure, and to develop a solid theoretical and practical model to radically reduce this 70%+ failure rate, and enhance our understanding of ‘How Organisations Function & Improve’. Myles’s work using his expertise and research, combined with Systems Theory, led to the peer review and publication of ‘Unitary Developmental Theory’. Unitary Developmental Theory (UDT) is a scientific means for understanding and improving Human Systems, such as an Organisation System. It explains how they Function? Why they Perform at a specific Level? The nature of their Culture and the Learning and Development Process. This Pocket Book summarises the application of UDT through its Operationalisation in the Organisation Capability Maturity Framework (OrgCMF), Digital Maturity Index (DMI) Reference Model. It takes the Management Science as applied to Digital Business Transformation, Change and
  • 9. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Improvement and presents the Body of Knowledge to the reader from the perspective of Business- Driven Digital Transformation & Change rather than from a pure Technology or Technology Management Perspective. It complements the technology centric Capability Maturity Models. The DMI Reference Model and Body of Knowledge are compliant with the rules of UDT, and enabled, in an accessible, usable and useful manner to all levels in a business organisation whether it be Public, Private or Not for Profit; or, CXO, Manager, Professional or Team Member. The Book provides readers with the basis for understanding their existing Digital Business Capabilities, and related Maturity Levels, and a means to identify the Gaps in their existing Digital Business Capabilities, required to achieve their business and Transformation, Change or Improvement goals. It introduces the roadmaps for each key Digital Capability to achieve the Level 7 Maturity, the highest Maturity Level. The book will explain and enhance your understanding of: • What is involved in Digital Transformation & Change for any Organisation or Team? • Explain the key Digital Technologies, their Application, and Buzz-Words • Explain all 36 Digital Business Capabilities and the Development Process • Provide Guidance on How to Assess Readiness for and Progress on the Digital Transformation journey for any Organisation or Team. • Provide Guidance, Hints, Tips, Tools & Techniques to help Plan and Implement Digital Transformation & Change.
  • 10. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Chapter 2: Overview of Digital Transformation and Change The Nature of Digital Change A strategic imperative for most organisations, must be to leverage existing and emerging technology to become, or maintain their leadership position at one end of the spectrum, or for survival at the other end of the spectrum, and all the scenarios in between. The context for each organisation will determine the nature of Digital Change it must implement, whether it be Incremental Improvement, Transitional Digitization Change, or more fundamental Strategic Digital Transformation.
  • 11. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 The known challenges of Digital Transformation The organisations Digital Strategy is the responsibility of the Leadership team, not just the IT function, who of course play a key role. Let us consider the key challenges identified by Industry Analysts and Leaders relating to Digital Change Programs in organisations; • Lack of shared Vision & realistic plan • Enabling Focus, Direction, Expectations, KPIs • Lack of Talent, Understanding & Skill • To Lead, Manage and Execute Transformation • Legacy Systems inertia • Existing IT perceived as Inflexible, & not Interoperable, Integrable, Securable • Poor Investment and success measurement • Budget, Impact Visibility, ROI • Insufficient Customer focus, understanding and data leverage • Their journey, what they tell? what you know? • Resistance to Change and Change Management • From Model to Task, and a process for change • Culture & Collaboration • Silos, Behaviours, Values What we see here is that many of the challenges relate to Leadership, Personal & Organisation development, as much as Technology & Customer development, re enforcing the important role each function in an organisation can play in setting the strategy and implementation of successful Transformation. Successful Digital Transformation requires alignment of the organisations aims and ambitions, with the required capabilities to achieve these aims and ambitions.
  • 12. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Digital Transformation is where the process starts before destination is fully defined. The scope is significant with fundamental change to Models, Product, Process, Operations, Technology to meet Customer needs. The level of People, Team and Organisation impact is significant. Digital Transition is where an existing way of operating is replaced by known but different way. It occurs in a realistic timeframe and usually impacts specific organisation domains/sub-systems. It often includes changes to Models, Product, Process, Operations, Technology to meet Customer needs for the target domain (Sector, BU, Function etc). Incremental Digital Improvement Focus is mainly improving something existing. The Current Culture and Practice will produce change. Acquiring capabilities to achieve it is practical. Non-technical leaders and professional play a key role in Digital Transformation, and though Information Technology (IT) Leadership and IT Professionals play a central role, and are often the focal point, it’s important to maintain alignment with the Business Goals. It is widely acknowledged that Digital Change and Transformation are Organisation Change iniatives’, which impact many stakeholders and ecosystems. In order that non-technical leaders and professionals can engage and significantly influence the success of the change or transformation, and to enhance the collaboration with IT a basic knowledge of Digital Technology and Language is extremely advantageous.
  • 13. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Change and Transformation Capability Improvement An Organisation’s current measured capability determines two things: 1. Its current performance 2. Its ability to change (Rate of change) The success potential of any change initiative is determined by: 1. The specific organisation change itself • Nature/Type • Level of ambition 2. The Capability Maturity of the organisation • The specific capabilities required, and • Their level of maturity By measurement of the current capabilities and their maturities, using The Organisation Capability Maturity Framework OrgCMF™ Maturity Assessments, and by using the OrgCMF™ reference model and body of knowledge, the success potential for any change or transformation program can be significantly improved.
  • 14. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Chapter3: The Digital Technologies & Buzz words? Digital change is the application of any aspect of information technology, to any aspect of an organisations value pyramid, at any level, to achieve a target business outcome. As we review the main digital technologies and methods, we will try to draw out their roles as it relates to the end state business or operational process enabled by a machine/device enabled software application. Software Stack Software Stack; (refers to a group of software programs that work in tandem to achieve a common goal, each providing a specific function e.g., Web application) Operating System; Manages hardware and software, to provide shared resources for the applications which run on the computing platform. Bridges S/W Applications to Hardware Functions. (Web) Server; a system that responds to requests across a computer network to provide, or help to provide, a network or data service. Database; an organized collection of data It is the collection of schemas, tables, queries, reports, views, and other objects. Programming Language; a formal language that specifies a set of instructions that can be used to produce various kinds of output. Enables the Computer do what the Programmer & User want.
  • 15. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Applications App. (Mobile App); A software application running on a mobile device. Provides value to the User. Virtual Reality (VR); a realistic and immersive simulation of a three-dimensional, 360-degree environment, created using interactive software and hardware, and experienced or controlled by movement of the body" or as an "immersive, interactive experience generated by a computer". Augmented Reality (AR); a live direct or indirect view of a physical, real-world environment whose elements are augmented (or supplemented) by computer-generated sensory input such as sound, video, graphics or GPS data. Artificial Intelligence; any device that perceives its environment, and takes actions that maximize its chance of success at some goal. Colloquially, the term "artificial intelligence" is applied when a machine mimics "cognitive" functions that humans associate with other human minds, such as "learning" and "problem solving". (Data) Analytics; the discovery, interpretation, and communication of meaningful patterns in data in any digital media to achieve a specific goal. It includes predictive analytics and behavioural analytics.
  • 16. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Software Platform A Platform; is a group of technologies that are used as a base upon which other applications, processes or technologies are developed. A personal computing platform is a modern laptop running Windows as an operating system. Another example would be an Apple computer running the Mac OS operating system, or Mobile Device might be hardware that runs Apples IOS or Googles Android OS. A corporate Platform might be based on Oracle, or SAP technologies as another example. Application Programming Interface (API); In basic terms, APIs just allow applications to communicate with one another. It is a set of functions and procedures allowing the creation of applications that access the features or data of an operating system, application, or other service. Neural Network; a computational model used in machine learning, computer science and other research disciplines, which is based on a large collection of connected simple units called artificial neurons, loosely analogous to axons in a biological brain. Block Chain; a distributed database that maintains a continuously growing list of records, called blocks, secured from tampering and revision. Each block contains a timestamp and a link to a previous block. By design, blockchains are inherently resistant to modification of the data — once recorded, the data in a block cannot be altered retroactively. Through the use of a peer-to-peer network and a distributed timestamping server, a blockchain database is managed autonomously. Blockchains are an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. The ledger itself can also be programmed to trigger transactions automatically. Cryptocurrencies such as ‘Bitcoin’ are one well know application but there are many others where privacy, confidence and security are required such as sharing of Patient Healthcare Records, Cross Border Payments, Music Royalty Tracking etc. Social & Media Social Media; are computer-mediated technologies that facilitate the creation and sharing of information, ideas, interests and other forms of expression via virtual communities and networks. They have evolved to become business platforms for creating and/or engaging in eco-systems, promotion, sales and delivery of products and services as well as enabling collaboration internally and externally in an organisation or as an individual or interest group. Digital Media; normally refers to data and information format, the means of storage, and/or presentation and interaction between the end user and the digital data/Information such as Text,
  • 17. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Graphic, Animation, Audio, Video, on any digital device or transducer. (EG web, Tablet, PLC, Doc, PDF etc). Data & Security Big Data; a term for data sets that are so large or complex that traditional data processing application software is inadequate to deal with them. Data Protection; (Information Privacy): describes all steps and organisation take to protect personal data they receive, process and/or store both physical and digital, including policy, procedure, tool, software, security. Often to comply with laws and regulations (e.g., GDPR). Cyber Security: (IT Security); is the protection of computer systems from the theft or damage to their hardware, software or information, as well as from disruption or misdirection of the services they provide. Botnets; are networks made up of remote-controlled computers, or “bots.” These computers have been infected with malware that allows them to be remotely controlled.
  • 18. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Hardware Perimeter Robot(ics)-Droid; is a machine, often one programmable by a computer, capable of carrying out a complex series of actions automatically. Robots can be guided by an external control device or the control may be embedded within. Robots may be constructed to take on human form but most robots are machines designed to perform a task with no regard to how they look. (Drones and autonomous vehicles can be included here). It can be software and/or hardware. (Intelligent/Connected) Machine; a tool or device containing one or more parts that uses energy to perform an intended action (s) that has electrical/digital connectivity to other devices. Internet of things; refers to the connection of any physical item (component, device, machine, subsystem, system) to other computing resources that can provide input, receive output, process and/or take an action. Expanding the scope of software applications to include control of “Things”. Transducer; is a device that converts a signal in one form of energy to another form of energy, a sensor is a transducer. A sensor is a converter that measures a physical quantity and converts it into a signal which can be read by an observer or by an (today mostly electronic) instrument. Device; is a constructed tool of any type, in any of the core sciences, and across the sciences, sensors above are devices, many sensors combine chemical processes with physical or electrical property changes that can be measured to indicate the target measurement dynamic and magnitude. In IT Device often means a physical electronic device, such as a Phone, PC, Tablet, Server, Sensor, Server, Car (connected) etc.
  • 19. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Connectivity & Cloud (Computer) Network; a telecommunications network which allows nodes to share resources. In computer networks, networked computing devices exchange data with each other using a data link. The connections between nodes are established using either cable media or wireless media. Cloud; a set of private, public or hybrid computing resources available to authorised users via the internet on an as needed basis which are dynamically scalable, and user often pay as they use the resources. **(IaaS) Infrastructure as a service; normally relates to access to data centre physical computing devices (Hardware) and network resources (CPU, Server, Storage, I/O etc). **(PaaS) Platform as a service; relates to access to and use of specific software stacks, which usually reside on an IaaS. **(SaaS) Software as a service; relates to access and use of specified software applications and/or functionality.
  • 20. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Main Hardware Central processing Unit (CPU): This is the main processor comprising of electronic circuits which performs functions and calculations as instructed, that are derived from software. Sometimes referred to as the ‘Microprocessor ‘, ’Silicon Chip’ or related circuit board containing the electronic components. Storage: A Computer System has several types of storage; The main storage is computer memory, which are Silicon Chips that contain the circuitry that store the binary software instructions and data that the CPU uses for processing, these are high speed dynamic access storage units. Other key storage units are hardware units with significantly higher storage capacity, which contain all the software stack and Applications and related data, these units may be Magnetic Hard Disks, Compact Disks, and Solid-State silicon chips. Power: Computing Units are electrical devices that require electrical A/C power, which is converted to the required A/C & D/C lower Voltages, required to operate the electrical components that enable them to function correctly. Facilities: Most personal computers can operate under normal conditions, but larger and more complex systems such as Servers, Main Frames, Storage Systems etc require special Utilities and Environments to assure Safe, Reliable and Secure functioning. This can include Air-Conditioning, Electrical Noise Screening, Power Conditioning, Back-up Infrastructure, Raised Floors etc. Models & Methods Digital Twins; A dynamic software model of a physical thing or system. Using physics data on how the components of a thing operate and respond to the environment, as well as data provided by sensors in the physical world, a digital twin can be used to analyse and simulate real world conditions, responds to changes, improve operations and add value. Digital twins of physical assets combined with digital representations of facilities and environments as well as people, businesses and processes will enable an increasingly detailed digital representation of the real world for simulation, analysis and control.
  • 21. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Mesh; Refers to the dynamic connection of people, processes, things and services supporting intelligent digital ecosystems. As the mesh evolves, the user experience fundamentally changes and the supporting technology and security architectures and platforms must change as well. DevOps; a term used to refer to a set of practices that emphasize the collaboration and communication of both software developers and information technology (IT) professionals while automating the process of software delivery and infrastructure changes. It aims at establishing a culture and environment where building, testing, and releasing software can happen rapidly, frequently, and more reliably. Agile (Development); a set of principles for software development under which requirements and solutions evolve through the collaborative effort of self-organizing cross-functional teams. It advocates adaptive planning, evolutionary development, early delivery, and continuous improvement, and it encourages rapid and flexible response to change. Backbone & Legacy Backbone (Infrastructure); Most often refers to the core IT Infrastructure that supports the deployment of an organisation’s digital services and applications (Data Centres, Servers, Networks, Standards, Platforms, Tools). Existing organisations will have legacy backbones. Legacy Systems; usually refers to the existing and/or past computing resources and technologies in use in an organisation or ecosystem. It includes hardware, software, architectures, records, methods, data etc.
  • 22. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Digital Ecosystems Ecosystems are where components/resources of an organisation network rely, are influenced, leverage or interact with components/resources of internal or external environments, organisations, entities, physical and human resources. They are part of a system, and an organisation’s systems may or may not extend to the external world. Digital Ecosystem is a group of interconnected information technology resources that can function as a unit. Digital ecosystems are made up of suppliers, customers, trading partners, applications, third-party data service providers and all respective technologies. Interoperability is the key to the ecosystem's success. The integration of business-to-business (B2B) practices, enterprise applications and data within an ecosystem allows an organization to control new and old technologies, build automated processes around them and consistently grow their business. Business Organisation Customers Suppliers Banking
  • 23. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Above we can see some examples Digital Business Ecosystem The management of transactions Digitally between stakeholders in a supply chain where there is Interoperability between the applications and data flows that enable business and operational processes to function at an application level through common technologies and standards. Digital Technology Ecosystem A common technology that enables Interconnection, Interaction and Interoperability between a set of technologies and/or Applications. In this example it’s the ‘Operating System (OS)’ so for a specific OS any application or service should work in any environment. Think of Apple IOS as an example
  • 24. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Chapter 4: Capability Maturity Management What are Capability Maturity Models & Why are they important? Perhaps we should start with the question below What are Business & Organisation Capabilities? Capabilities are most often defined as ‘The ability to mobilise resources to achieve an Aim’. This is quite a general description but it captures the essence of what a Capability is. The strength of understanding and managing Capabilities is that it can apply at any organisation group or level and, to any person or thing. From a Business & Management perspective we are mainly concerned about the Capabilities of: • Organisations • Functions • Teams • Processes • Activities • People • Machines Why is understanding Capabilities useful? Ultimately a Business, Organisation, Team or Function’s; Performance, Practices and Culture are determined by the level of their Capabilities (Often referred to as their Maturity Level, Functioning Level or Learning Level).
  • 25. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Capabilities encompass the often sophisticated ‘Inters’ within and Organisation system, sub-system and elements, which ultimately determines outcomes and outputs. For example, if we take a ‘Work Activity’ in an organisation process, the effectiveness and outputs are determined by many factors within that activity, and many external factors (Skills, Attitude, Data, Machines, Techniques, Process, Environment etc. etc). Capability Maturity Management is a means of understanding, managing and improving outputs and outcomes in this sophisticated scenario, especially in times of VUCA. What are the Relationships between Capabilities, Competences, and Processes? Business processes are sequences of actions that organizations engage in to accomplish specific tasks. They represent how an organization’s resources are exploited, and can be thought of as the routines or activities that an organization develops to get something done. Business processes require the competences (knowledge, skills, and experience) of individual employees and groups for their effective execution. In turn, business processes help individual employees and groups develop competence in particular ways of working. Processes and competences are thus mutually dependent and reinforcing. Effective and efficient processes are critical for business operations, but they must be regularly evaluated and where necessary modified to ensure that they continue to meet the organization’s ongoing requirements and to deliver sustainable business value. Capability management provides the vital link between the business’s strategy and environment and its business processes. It gives the organization the ability to create patterns of learning and adjustment and to establish and maintain synergetic relationships between competences (people), processes (routines), and resources (assets) to accomplish a desired end. Why is it often a challenge to understand how an organisation functions, performs, and to make successful changes? Because organisations are complex systems made up of many diverse elements that usually influence or impact on each other in different ways. We describe these influences or impacts as ‘The Inters’ • Interrelationship: The way in which two or more things or people are connected and affect one another. • Interconnected: Different parts, people or things that are connected or related. • Interoperable: The ability or two or more people or things to share information and/or resources. • Interdependent: The state of two or more people or things being dependent upon one another • Interlayered: A person or thing inserted between other persons or things (layers) • Intercepted: To take, touch, monitor, halt or someone or something on its way to a destination. • Intervention: the act of interfering with the outcome or course someone or something. • Intermediated: Lying or occurring between two extremes or in a middle position or state for persons or things.
  • 26. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Capability Maturity Reference Modelling is a means of representing the Organisation system and its ‘Inters’ to provide a Framework & Simplification, to plan and execute Change, Transformation and Improvement. An Example of a list of Digital Organisation Capabilities (DMI™ Reference Model)
  • 27. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 What is a Maturity Level? The Maturity Level for Capability Management is the measurement scale which is used to define the specific traits and performance at each defined level in the scale, for each specific Capability. Many maturity models use descriptive scales with 5 levels, some use a normative and scientific 7 or 15 level scale. Unitary Developmental Theory (UDT) identifies 15 discreet maturity levels, while The Organisation Capability Maturity Framework (OrgCMF™) Reference Models use a more practical 7 level normative scale based on UDT. The Maturity Level may also be stated as the Functioning Level of an Organisation, Team or Specific Capability which can be measured and stated as the existing habituated level (measured level). So, the Maturity Level describes the Functioning Level and explains the consequential Performance, Practices and Behaviours. The Maturity Level also may be stated as the ‘Learning Level’ for an Organisation, Team or Specific Capability. The ‘Learning Level’ may be described as the ability to change, in other words the nature, magnitude and frequency of change that can gain sustainable traction (In effect the Agility). By understanding the Maturity Level of an Organisation, Team or Specific Capability we can understand why it performs at a specific level, and its ability to respond to change. This is important because Transformation and Change Programs usually have performance targets and aims from a business perspective, and to attain those targets and aims usually requires building new capabilities, and building the Maturity level of some existing capabilities. It must do this in order to achieve the target business and change objectives within the desired time-frames.
  • 28. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 What new insights does Unitary Developmental Theory bring to understanding Capability Maturity Levels? By understanding the existing Maturity level (Learning Level) Change and Transformation actions can be calibrated to assure they gain sustainable traction and build Agility, as the identified Capabilities are built through the Capability Development Process/Roadmap. Research that led to UDT identified that the lower Maturity Levels (OrgCMF™ levels (1-3)/7) are disintegrative, and do not have the ability to take on board change without support and assistance. Reviewing each stage of the Development Roadmap for the Measured entity or capability from Level 1 to ensure all foundation Capabilities are in place is a key requirement at these lower levels of Maturity. Equally the higher Maturity Levels (OrgCMF™ Levels (5-7)/7) are integrative and have the capacity to take on board change without significant additional support at the measured level’s development guidance. Maturity Level 4 (Operational) is borderline and may be either Integrative or Disintegrative and special care needs to be taken when implementing change actions at this level validating all Capability indicators for that level are in place.
  • 29. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 What is a Capability Maturity Model? A reference model in systems, organisation, and engineering is an abstract framework or domain- specific ontology consisting of an interlinked set of clearly defined concepts, produced by an expert or body of experts in order to encourage clear communication. A reference model can represent the component parts of any consistent idea, from business functions to system components, as long as it represents a complete set. This frame of reference can then be used to communicate ideas clearly among members of the same community. A Capability Maturity Model (CMM) is a Reference Model that represents a defined Organisation System and/or sub-system, which identifies and defines each Capability and its building blocks for every Maturity Level on a defined and accepted Maturity Scale. Thus, enabling users of the model to identify the relevant Capabilities to their business aims and objectives, assess their existing maturity levels and improve those capabilities to target maturity levels they deem important to achieve their objectives. What is a Capability Maturity Framework? A reference framework is a Body of Knowledge, Reference Model, Guides, Tools, Platforms and Standard that represents researched and practiced approaches that reflect shared learning and best practice in an ecosystem or domain. A Capability Maturity Framework (CMF) is a set of artefacts and tools that enable a user to identify the current capability maturity of their Organisation, Team, Function, Capability and its Capability Building Blocks (Micro Capabilities), identify new capabilities required and maturity level improvements required to achieve a specific output and outcomes. A Framework normally includes: - • A Capability Maturity Reference Model • A Body of Knowledge • A means to Measure or Assess Maturity against the Model • A Methodology to integrate Capability Improvement into Transformation, Change or Improvement Programs • A Maturity Development process for every Capability and the levels of the Model overall • Supporting evidence of the management science that underpins the CMM Choosing a Capability Maturity Model and Framework The selection criteria for the Reference Model should include: • Based on independent & objective scientific research. • Normative reference base (measurement standard). • Accessible, Useful & Usable by Industry & Professionals. • Community led Application and Development • Value Added Ecosystem for derived knowledge and tools • Represent latest Knowledge & Best Practice
  • 30. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 The ‘Reference Model & Framework’ should be chosen to support the specific Improvement, Change or Transformation objectives of the organisation, and connect both investment and action with achieving those objectives. Whether it’s a tactical, short, or long-term strategic initiative, the use of the Model & Framework should guide the user Organisation, Teams and Individuals on the appropriate priorities, actions and impacts expected, day to day and over the long term. A good Model & Framework helps individuals and teams deal with the sophistication, complexity and interrelationships within and Organisation System. Using a Capability Maturity Model & Framework A Reference Model & Framework is about providing useful and accurate information to the Organisation, Teams & Individuals if and when they need it, to achieve their target aims and ambitions in a sustainable manner, reducing risk and enhancing successful outcomes. It does this by helping provide answers to questions like? • What is our current performance and why? • Where do we need to start? • What are our priorities? • Have we missed anything? • What capabilities do we need to achieve our aims and objectives? • What tactical and/or strategic investment/actions should we take? • Are we progressing? & How well are we progressing? • How do we compare with XXX? • How do we overcome or improve YYY? There are two critical Information components in a ‘Reference Framework’ that assure its value to Organisations, Teams & Individuals. 1. Body of Knowledge 2. Measurement (Assessment) An additional component of Information comes from the Organisation’s own knowledge and competence, which is the 3rd and final essential component that enables the realization of the Framework Value.
  • 31. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 A high-level view of a Capability Maturity Improvement Methodology The Organisation Capability Maturity Framework
  • 32. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 The Three Reference Models & Bodies of Knowledge • The Organisation Maturity Index (OMI) • The Team Maturity Index (TMI) • The Digital Maturity Index (DMI) The Organisation Development Tools Institute
  • 33. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 OrgCMF™ Improvement Roadmaps OrgCMF™ Benefits
  • 34. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Get Started with OrgCMF™ Register on OrgCMF™ Digital Platform • Complete the short registration (email and set your password) • We will assign ‘Privileged’ Account Status within 24 hours • You will then have o Full access to all three Reference Models and their bodies of knowledge o Access and take the short familiarisation videos o Unlimited access to select or configure your own Maturity Assessments o Run Capability Maturity Assessments and access Real-time reports and action guidance Examples of Capability Maturity Frameworks There are many examples of Capability Maturity Frameworks and Capability Maturity Assessments offered. Beware of the proprietary company versions that may not be adequately informed by independent scientific research. The IT sector is well serviced by models as you will see below from a few examples, these ones tend to be ‘Technology’ or ‘Technology Management’ centric. CMMI Capability Maturity Model Integration is a process level improvement, training and appraisal program. Administered by the CMMI Institute, a subsidiary of ISACA, it was developed at Carnegie Mellon University. It is required by many U.S. Government contracts, especially in software development. It helps organizations streamline process improvement and encourage productive, efficient behaviours that decrease risks in software, product and service development. COBIT COBIT is a framework created by ISACA for information technology management and IT governance. The framework defines a set of generic processes for the management of IT, with each process defined together with process inputs and outputs, key process-activities, process objectives, performance measures and an elementary maturity model.
  • 35. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 IT-CMF The IT Capability Maturity Framework (IT-CMF) created by the Innovation Value Institute an Irish Government sponsored technology research centre at Maynooth University, is a model that evaluates and improves an enterprise's information technology (IT) capabilities. The origins of IT- CMF can be traced back to when Intel IT undertook a transformation to quantify and demonstrate the true value impact of IT. Prosci Change Management Maturity Model Prosci's Proprietary Change Management Maturity Model describes the varying levels of change management capability across organizations. The maturity model has five levels or stages, from no change management to organizational competency. Each level involves more attention and management of the people side of change. PMI Maturity Model The PMI Model is designed to help organizations assess the state of their organizational project management maturity by assisting them in understanding organizational project management, its maturity, and how to assess themselves. Capability Maturity Management Glossary Use Cases Personal Familiarisation: • Objective: To understand how OrgCMF assessment works, and the potential value it might have for your organisation. • Approach: Select a sample dynamic or Assessment, complete the assessment and review report. • Sample size: 1 Organisation Familiarisation & Validation: • Objective: To understand how OrgCMF assessment works, and the potential value it might have for your organisation. • Approach: Invite participants to complete trial Assessment, and review report. • Sample size: Up to 5 Leadership Alignment: • Objective: To facilitate the leadership’s understanding, and discussion of existing organisation maturity, and its impact on performance, or in advance of a proposed change to align stakeholders and inform the change plan. • Approach: The leader and/or leadership team selects relevant dynamic(s) or Assessment, completes the assessment and reviews report. • Sample size: All (Max 20) Key Staff Alignment: • Objective: To facilitate key stakeholder’s understanding, and discussion of existing organisation maturity, and its impact on performance, or in advance of a proposed change to align stakeholders and inform the change plan. • Approach: The leader and/or leadership team selects relevant dynamic(s) or Assessment, completes the assessment and reviews report.
  • 36. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 • Sample size: All (Max 20) Specific Business/Operational, Issue/Opportunity: • Objective: To identify those capabilities that may need maturity improvement to assure successful change outcomes, and to calibrate change program, and actions to achieve traction and sustainability. • Approach: The leader and/or leadership team selects relevant dynamic(s) or Assessment, completes the assessment and reviews report. • Sample size: Use statistical sample size calculator (Recommended 95% confidence level & 5% Margin of error). • Repeat Assessment: Generally, no more frequent than 90 days, and no less frequent than 270 days, depending on the context. Transition/Transformation (Readiness): • Objective: To identify those capabilities that need maturity improvement to assure successful Transition/Transformation outcomes, and calibrate change program and actions to achieve traction and sustainability. • Approach: The leader and/or leadership team selects relevant dynamic(s) or Assessment, completes the assessment and reviews report. • Sample size: Use statistical sample size calculator (Recommended 95% confidence level & 5% Margin of error). • Repeat Assessment: Generally, no more frequent than 90 days, and no less frequent than 270 days, depending on the transformation plan. Continuous Improvement: • Objective: To allocate ownership for capability building and improvement. _To implement a consistent approach across the organisation, that can motivate and be program manage4. _To address all core organisation capabilities that support continuous improvement in performance of the organisation. • Approach: The leader and/or leadership team selects relevant dynamic(s) or Assessment, completes the assessment and reviews report. • Sample size: Use statistical sample size calculator (Recommended 95% confidence level & 5% Margin of error). • Repeat Assessment: Generally, no more frequent than 90 days and no less frequent than 270 days. Internal Benchmarking: • Objective: To identify points of misalignment of capabilities which impact performance. To motivate constructive competition, and set targets/standards for improvement. To improve awareness of performance, and the value/impact of improved capability maturity. • Approach: The leader and/or leadership team selects relevant dynamic(s) or Assessment, completes the assessment and reviews report. • Sample size: Use statistical sample size calculator (Recommended 95% confidence level & 5% Margin of error). • Repeat Assessment: No more frequent than 120 days and no less frequent than 365 days.
  • 37. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 External Benchmarking: • Objective: To understand, compare relative maturity levels and related performance between organisations of interest. _To motivate constructive competition, and set targets/standards for improvement. _To improve awareness of performance, and the value/impact of improved capability maturity relative to competitors. • Approach: The leader and/or leadership team selects relevant dynamic(s) or Assessment, completes the assessment and reviews report. • Sample size: Use statistical sample size calculator (Recommended 95% confidence level & 5% Margin of error). • Repeat Assessment: No more frequent than 120 days and no less frequent than 365 days.
  • 38. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Chapter 5: Digital Maturity Index (DMI) DMI Model (M1) The Digital Maturity Index (DMI) is a Reference Model that describes the Digital Effectiveness of an organisation and how well Digital contributes to the organisation’s performance, based on Unitary Developmental Theory. It outlines the critical Organisation, Team, and Individual Digital Capabilities and their Maturity levels and provides a roadmap for successful Digital Change & Transformation. Model Level (M1): DMI Maturity Index Maturity Level Traits for Maturity Level Development Focus for Maturity Level (Action Calibration) 1 Crash The organisation does not have a clear Digital Strategy. What Digital technology does exist, is not used, or is used incorrectly, and it is degrading the organisations performance. Employee Digital literacy is low and this is a barrier to Digital Change. (Digital Decay) A Leader takes responsibility for creating awareness of the organisations Digital Business and Technology shortfalls by making clear, 'Business as Usual' cannot continue, and engaging with a critical network of Organisation Leadership, Team Stakeholders and Team members who commit to creating a plan for change across the 6 critical dynamics for Digital effectiveness (Resuscitate) 2 Critical The organisation seems locked into the existing technology and/or a legacy vendor. The existing technology, processes and supplier(s) are cumbersome to work with, and may be dependent on specific individuals and/or suppliers to make changes. There is a degree of frustration expressed by users and pressure for improvement (Digital Laggard) A Critical Network of employees are committed to effect Digital Change and Transformation. An understanding of existing Digital technology and new technologies should be developed by the Critical Network. The Leader seeks inputs from Organisation stakeholders to create a Digital Transformation Agenda & Plan to change the technology focus and investment, in the organisation. An inventory of existing and potential future Digital Assets is prepared and evaluated. (Reawaken) 3 Comfort Stakeholders are familiar and comfortable with existing (Legacy) Digital Technology and consider it fit for purpose, yet there is an emerging consensus from a critical network that, to 'future proof' the organisation, significant changes must be evaluated and a strategy and plan put together which strengthens the Organisations Performance and Value proposition (Digital Complacent) The Leadership team must review the potential Change and Transformations, and establish the extend of the changes. Business Model, Operating Model, Products & Services and key processes. The critical network of champions should engage with all stakeholders to understand their personal and business needs, expectations, and level of engagement in mobilising any changes. Technical and Architecture expertise must be in place to support technology selection and deployment to achieve the target business outcomes, and operation
  • 39. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 policy and procedure supported by training put in place (Renovate) 4 Operational The Organisation has processes, systems and governance that support technology adoption & changes. These processes are followed. Technology Issues get reported, tracked and addressed in order of priority. Users are notified when changes are planned and training is provided relating to changes (Digitized) In defining and planning Digital change options, internal and external users/customers/stakeholders must be engaged appropriately from Vision, Design, Planning to Implementation and Operation. Agile and DevOps techniques may be adopted as appropriate. Adoption of New and emerging technologies Cloud, Social Media, Analytics, AI etc. and related changes should be implemented as per plans, and related Digital workplace changes taken into account. Build Cyber Security and Personal Data Protection Capability. Relationships between stakeholders should be strengthened via Digital techniques. (Refocus) 5 Competitive There is a culture of internal and external customer focus. Digital Technology is leveraged to engage in ecosystems and markets. Data and Information are captured and analysed to guide Customer, Operational and Product Management. Technology is managed with the same focus and Agile/Lean techniques are used to enhance responsiveness and performance with automation where feasible. (Digital Transitioned) The Organisation looks internally and externally to best and latest technologies & their application. Users should be empowered through training and support to configure and exploit existing and emerging technology and data, relevant to their Roles & Performance. The on- going strategic and tactical relationships are developed to be Digital centric leveraging Collaboration, Analytics and AI tools to personalise and automate activities and improve performance. (Re- energise) 6 Advantage The organisation has advantage over the competition or is the benchmark through Technology adoption and management. This maybe in the form of Operational Efficiency, Customer Intimacy and/or Product Leadership. Customers and users are engaged in, and influence how the organisation leverages and changes its technology to meet user, customer needs and responds to VUCA opportunities. (Digital Transformed) Teams and Individuals are enabled to Innovate and rapidly adapt to any emerging data and information internally and externally. Leverage investment in Digital to reduce cycle times, cost, and non-conformance and increase internal and external Product & Service Value and Value propositions. Encourage the engagement of new ecosystem and ecosystem participants in all aspects of the value chain to achieve market disruption, customer intimacy, acquisition and retention. Operational excellence and product leadership. (Release)
  • 40. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 7 Leadership Digital Technology is central to the organisation’s performance and success. The organisation is seen as a benchmark internally and externally. The organisation influences and facilitates Digital Ecosystems critical to its Supply and Value Chain from Innovation through to Product/Service Delivery/Consumption. Spin offs emerge from the Organisation and its Ecosystems as do new Joint Ventures. (Digital Leader) Promote the organisations achievements externally and continually review and adapt to emerging information seeking to identify new opportunities (e.g., Spin outs, JVs, M&A) Be seen to be a leader in technology application and data exploitation while maintaining trust and confidence of stakeholders in the organisation’s Digital footprint. Seek to re-configure Business & Operational Models, Products and Services to create new Value Propositions combining and disconnecting from ecosystem elements and value chain contributors to maintain dynamic performance leadership (Regenerate) The DMI comprises of six ‘Dynamics’ (Macro Capabilities)
  • 41. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 DMI Dynamics (M2) - Macro Capabilities Digital Strategy – (Value Planning) Digital Strategy involves setting the organisation's goals, determining actions to achieve the goals, and mobilizing resources to execute the actions, often under conditions of uncertainty. A strategy describes how the ends (goals) will be achieved by the means (resources). The Digital Strategy Dynamic relates to where the organisation is going, and how it is going to get there and how technology enables achievement of the organisation's aims and ambitions. Dynamic Level (M2): Digital Strategy Maturity Level Traits for Maturity Level Development Focus for Maturity Level (Action Calibration) 1 Crash There is an absence of a Digital Vision, Mission, Goals, Values and Structure in the organisation, or where it exists, we have had little involvement or awareness in influencing it. Therefore, it has limited understanding, meaning, or benefit, and in fact may be damaging to the organisation. A leader (change agent) champions and energizes stakeholders with a new vision of the organization in a more Digital world, and generates a Critical Network (CN) of key people so motivated including the Leader, as well as other critical roles that may be filled/strengthened with similarly motivated people. Strong communications process acknowledges required change, disconnects from past. Objective outside help may be used to engage and build the values and commitment to change and develop a plan to grow Digital Maturity through the Phases. 2 Critical The Digital Vision, Mission, Goals, Values and Structure seem ad- hoc, unrealistic, and somewhat reactive. They are prescriptive from the top, with narrow involvement outside the top team. They provide limited guidance or motivation and the approach seems to continually change. The leader is seen to champion and take accountability for the agreed Digital change plans, moving from rescue mode to turnaround mode. The Critical Network (CN) are seen to take responsibility for implementing the Digital Transformation plan. Totem wins are achieved and celebrated. Experimentation is enabled towards offering diverse Digital options that may contribute to sustainable competitive advantage. Ensure strategic competence among the CN and all key roles to support change, while a network of key people is seen to live the values (Human & Commercial). 3 Comfort The Digital Vision, Mission, Goals, Values and Structure are stable but influenced by vested interests, and lack ambition, or are unrealistic. Involvement tends to include those aligned with the leadership, and year on year the strategy is only tweaked. Rigid structures are applied to controls that have financial impact and Everyone is engaged to discuss the Digital Strategy process, and relevant Digital Technology & Practices, and they are brought to understand associated procedures, environment scanning, situation analysis, decision making and resource allocation. Fears are addressed and a sense of togetherness of purpose is generated. Take stock of what is emerging from the Experimentation and resource people and projects with
  • 42. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 little attention is paid to stated Digital Values. strategic potential, while misaligned resources are reassigned or retired. 4 Operational There is diverse Functional environment scanning across the organisation and a process of senior staff engagement in analysis and setting the Digital strategy. Change is influenced by the strategy, with general alignment on the Goals, Process and Values. The structure is adapted to day-to-day organisation learning. There is a degree of stability and alignment around the Digital strategy. Implement all required personal development and training required for the Digital strategy as well as engagement in organic responsive and anticipatory Digital Strategy generation. Formalise all roles in alignment with strategy. Ensure procedural functionality and embedded digital process re. environmental scanning, resource allocation, management information, etc. Implement structural change to lowest number of levels. 5 Competitive The Digital Strategy is a dynamic process, with involvement from across the organisation. It is based on evolving learning and needs of the organisation rather than an annual event. The Digital component is reflected in the mission and conveys meaning and differentiation to stakeholders. The vision aligns and empowers individuals and teams while the values lubricate effective implementation of the Digital strategy. Strategy process moves to being more dynamic, organic & regenerative with Digital at its heart. Vision & Mission drive competitive focus, change and growth with Digital Value integrated. Rewards and Career aligned with competitive results. Strategy is diverse, collegiate and responsive, and the glue for this is the Mission and how the structure ‘functional and cross functional’ share and act on Information and learning. Being Digitally better than the competition and exceeding internal and external customer expectations becomes a shared value. 6 Advantage Digital Innovation is the norm, and can come from anywhere within the organisation or external stakeholders. The systems, process and culture are such that strategic changes can be promptly implemented. Dynamic collaboration is the norm where people group to address issues or opportunities, execute change and assure the Aims are achieved leveraging Digital where appropriate. The vision and values inspire action and are regularly reviewed. External stakeholders engage Digitally and the brand encompasses the resulting Digital value and advantage. Strategy is formed from events and from across the organisation and its levels. The vision, mission and values empower and inspire creativity and proactivity and the ability to deal with complexity, leveraging technology where appropriate. Talent is released to create advantage in strategies, process, products and practices, leading to market advantage. Resources, Relationships and Culture accommodate new Digital directions and see out improvement opportunities. Structure is not overprescribed to allow for agility and self-direction and a collaborative culture and capabilities. The organisation is metrics driven with embedded process control and governance. 7 Leadership Our Digital Strategy, Performance and Impact has led to our organisation, products and people being respected as Digital leaders Awareness of the responsibility of the Digital leadership position, and to grow the position means that the leadership must ensure all dimensions of the Digital
  • 43. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 in our sector. Our ideals and purpose, are open, and worthy for both the sector and society in general. Our Digital engagement and influence with sector stakeholders allow us to shape the sector. Our culture and way of work is agile and impactful day to day and over the long term and leverages new technologies & relationships in the marketplace. strategy (Vision, Mission, Involvement, Values, Structure) must be monitored and revitalised. Engagement of internal and external stakeholders must be maintained and their creativity stimulated, while pruning out any role, process, technology, product or practice that does not contribute to Digital Advantage or Leadership. The structure extends beyond the organisation boundaries into its ecosystems through Digital, where it leads or leverages the Digital resources and innovations of others. Periodic DMI full or partial, type assessment on some or all of the organisation can stimulate continuous improvement and Innovation. Digital Ecosystem engagement and environment scanning is embedded to continually grow and exceed customer and market expectations and future needs driven by performance management and ambition. Digital Strategy Constructs (M3 - Micro Capabilities) Digital Business Model (DBM) The net additional economic value for the organisation, created by its effectiveness in leveraging internal and external Digital resources and eco-systems, in providing Offerings to Customers. Access to Digital Resources (DAR) The ability of the Organisation to access all resources required to plan and execute a Digital Strategy Performance & Benefits Management (DPB) The effectiveness of the Leaders in managing the Organisation, Team, and Individual Digital Performance Innovation & Experimentation (DIE) The extent of Digital Innovation & Experimentation across the Organisation that leads to successful value creation Governance & Risk Management (DGR) The effectiveness of managing Digital Change & Transformation to assure target performance and outcomes are achieved Digital Ecosystem Exploitation (DEE) The ability to engage, influence and/or control Digital Ecosystems to create value
  • 44. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Digital Workplace - (Value Creation) The Digital Workplace describes how, and where Employees & Stakeholders implement the organisations plans, carry out their roles and activities, engage with technology, stakeholders, teams and ecosystems in the context of a modern technology enabled business. Dynamic Level (M2): Digital Workplace Maturity Level Traits for Maturity Level Development Focus for Maturity Level (Action Calibration) 1 Crash The workplace has not moved with the times, there is little use of Technology or Automation. Jobs and tasks reflect traditional Industrial age structures. Productivity, Motivation and Job satisfaction are relatively low. Work resourcing and work management is either over managed or chaotic, and work output unpredictable and/or unrequired. The Leader / Change Agent creates amongst a network of Critical People representative of all stakeholders (CN), the desire to change the work and related work activities, leveraging New Technology Vision, or Diagnostic, etc., to create Disorienting Dilemma that the workplace cannot continue as is. Then (S)he gets them to commit to rejecting the past and then facilitates them as a planning team, to plan the development of the Digital workplace through the DMI Phases starting with addressing resources relative to what is required for success, designing workflow, roles, forging new relationships with suppliers, customers, etc. 2 Critical The organisation has some computers/machines and these are used for certain roles. Some people were/are trained to use the technology we have, and we go to them if we need something changed. The systems’ impact the flow of work and certain work activities and these are often interrupted due to problems. The technology we use is old and we use it in the way it was originally designed or intended. The Leader is seen to champion and take accountability for the agreed Change Plan to develop the Digital Workplace. The Critical Network (CN) are then seen to take responsibility for implementing the plan and whatever competence is needed to manage it among the network is acquired through either training or recruitment. 3 Comfort We have the technology we need to carry out our roles and work activities. Its reasonably stable and there is technical support available when we need it. Though we can see some opportunities to better use it, and that new technologies would improve my job/our team/ the organisation’s performance, there is no incentive to make the changes and no one seems to care. The Critical Network (CN) engage the people with the plan through communications, workshops, etc., to raise their issues first around the Social (togetherness with purpose) issues, and then the Emotional (fears, etc.,) issues. The CN challenge the People and some will emerge who can be engaged in the CN. Some opportunities may seem good candidates to pilot the new technology applications, starting with the next Phase of Training and implementing process, procedure, information systems at procedural functioning, etc. Implement a Social Platform system 4 Operational The organisation uses automation and uses computer systems to Design, Build and Deliver our Products and Service. Where there is a Quality, Cost or Productivity benefit This Level is always about creating an internal fitness for purpose, so competence is raised to required levels through Training and Personal Development so that people can achieve Agility of function in the new
  • 45. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 for an individual, team or process. Supported by a business case technology gets upgraded or new technology procured. ERP and Office Productivity tools and systems are built into our operational processes and we are trained to use them. Dynamic Digital Workplace of the next Phase. Then, all related process and procedure are implemented with everyone knowing and competent for their roles. All changes to IT, e.g., data processing, workflow mgmt., mgt. info, Performance Mgt., Resource Allocation, Project Mgt., etc., is implemented 5 Competitive The organisation invests in keeping its technology current where it delivers performance benefit for individuals, teams and the organisation overall. The use of resources of the organisation are optimised through leveraging Digital Technology and Process Automation. There are processes in place to continuously improve our performance and the use of technology and we are encouraged to suggest and implement changes and improvements. We are trained to use the Digital and Technology resources available to be effective and efficient. The majority of roles and tasks leverage technology and staff maintain competitive skills and competence. The Dynamic Digital Workplace is the lower level of Agile Workplace. Each worker is digitally enabled to connect to any other stakeholder in the system from customer to supplier, work colleagues, knowledge providers, problem solvers, etc., and each person is incentivized to resolve issues that make the system more effective than the competition. The broader the scope of the enabling Platform the better. Implement Customer Relationship Management system that allows dynamic learning of customer issues and needs and Environmental Scanning. The key move in this Phase is to shift from a sense of organization as bureaucratic system to dynamic eco-system 6 Advantage Our unique technology, or application of technology gives the organisation its advantage either its Product, Operations or Customer Intimacy. The organisation invests in protecting & maintaining its technological advantage innovating how it can improve. All systems of business, Record, Productivity and Engagement are maintained at latest levels and reviewed and updated. Anything that can be automated is automated, and careers, job roles and tasks are such that they develop individuals and provide variety and significance to the work people do and their value in the system overall The Advantaged Digital Workplace is the mid- level of Agile Workplace. Time and space are given to Innovation and the production of novel solutions generated from the Dynamic system of the previous Phase. The difference is that people and teams are afforded autonomy to set goals re. Innovation that brings something novel to the workplace and/or market. Gainsharing and Autonomy combined produce exceptional results in Innovation. Emphasis is maintained on platform innovation. Implement a Collaborative Platform that engages sources from within and outside the organizational system to further Innovation 7 Leadership Our organisation is seen as a leader who innovates and exploits technology, and our staff at all levels have advanced leading competencies and are comfortable working in and with new and emerging technologies. Individual, team and organisation Products, Services, and Customer satisfaction are seen as leading and The Leadership Digital Workplace is the highest level of Agile Workplace. Autonomous Teams may become Spin-Off Enterprises who bring their own Digital Workplace to the new Enterprise. For the host system, this Phase is about achieving relationships that are both in the organization's favour but in the long-run interests of all concerned. Also, regularly
  • 46. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Agility, Productivity and Resilience are continually refreshed. Staff competencies, roles and activities are enriched through the organisation’s commitment to Digital Leadership in the workplace. refresh the workplace through a cyclical application of the programme starting with performance assessment, disconnecting what is not satisfactory, re-purposing the plan, etc., etc., through the rest of the Phases Digital Workplace Constructs (M3 - Micro Capabilities) User Engagement & Experience (DUE) The effectiveness of Digital user engagement, and the influence the user has on the design and operations of the Digital Workplace Work Design & Enrichment (DWD) The Organisation's Capability to enhance the attitude towards, and the motivational value of, the Digital Workplace for stakeholders Digital Literacy & Competence (DLC) The level of Digital Skills and Abilities of stakeholders that enable them to participate in the design & operation of the Digital Workplace Digital Team Effectiveness (DTE) The Performance and Experience of Teams in exploiting the Digital Workplace (Virtual & Hybrid) Remote & Virtual Working (DVW) The management and Effectiveness of Remote Working, Virtual & Hybrid Teams Attitude to Change (DAC) The attitude of stakeholders towards Digital Change in the organisation its ecosystems and workplaces
  • 47. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Digital Offering - (Value Proposition) The Digital Offering includes the Products & Services the Organisation Provides, how they are Presented, Provisioned and Consumed as they relate to the use of technology to create advantage and value. Dynamic Level (M2): Digital Offering Maturity Level Traits for Maturity Level Development Focus for Maturity Level (Action Calibration) 1 Crash Our Products and Services, and how they are promoted and delivered have not changed in a long time, and demand is declining and we are now uncompetitive. Our performance is degrading due to this situation. There seems to be little interest in adopting technology to improve our offering The Leader/Change agent initiates a dialog amongst a critical network (CN) of stakeholders who share dissatisfaction with the current Offerings. This group establishes a consensus amongst key influencers that the existing line up of Products and Services and/or How they are presented or Consumed, are no longer viable or sustainable. Initial commitment is attained to build a new approach to product management and a new product and services plan, and that this will be done through the development phases on this DMI model starting with any initial resource and training to proceed. 2 Critical We have one Product/Customer/Market for our Digital Offering which has limited advantage or differentiation. We continually change our approach to broaden appeal but this is largely ineffective. There is no strategy for Digitizing our Offering/Business/Organisation The Leader/Change Agent with the support of the Critical network takes responsibility to prepare an initial Offering (Products/Services) Strategy and Plan. Key stakeholders are directly engaged by the Leader to secure buy- in and support, and awareness is created across the organisation of the emerging approach and product management plan. Stakeholders must be put as ease as to what is likely to happen, how they will be updated and engaged, what the current unknowns are, and what training and supports will be included 3 Comfort Our Offering gets updated periodically adopting similar approaches and technologies to our competitors. Our current customers seem satisfied and there is no pressure to change our positioning, products or provisioning. Through Communications, Workshops and Social Platforms, staff and relevant stakeholders are engaged in a dialog to address any concerns they may have, provide them with data and information that reinforces the benefits for Digital Change and seeks their inputs. Stakeholders must be put as ease with the New Offering Strategy and Planning approach. Initial Process, Procedures, familiarisation and training should be planned and implemented so they become part of the Organisations Digital Product agenda. Some pilot or proof of concept opportunities may be suggested. 4 We have a Product release and management process and plan. R & Structures, Systems, and Resources are put in place with responsibility for leveraging Digital
  • 48. Digital Business Transformation and Improvement Pocket Book (Edition 2) www.orgcmf.com Pocketbook Edition 2 Operational D, Marketing and Operations follow that plan and we adopt new technology as appropriate to Positioning in the Market, The Solution our Market needs and Delivery of our Offering. internal and external information on Customer and Market needs. Social and Collaboration Platforms and groups across internal and external Digital ecosystems created to identify Customer and Market needs for inclusion in Product and Services Roadmap and development plans. Crowdsourcing and Innovation jams should be considered as a means to expand the Organisations Knowledge, Capability and Capacity. Test, Beta & Release processes and plans documented, and systemised to assure reliable delivery of new Digital Offerings to the Market place 5 Competitive Our Feature, Functions and Service levels for our offerings are competitive in the market place. We have adopted best practice in the adoption of Digital Technology and use it to engage with our Market and Customers to plan, provision and update our Offerings Individuals and Teams should be empowered to Innovate, and Agile techniques introduced with appropriate training and engagement across the full product life-cycle management spectrum. Skunk works should be supported where appropriate to become familiar with and trial emerging technologies and platforms and how they might contribute to current and future Product advantages and competitiveness. Customers, Suppliers, Partners and other 3rd parties enabled to participate in Design & development of Offerings. 6 Advantage We have extensive digital systems to engage in our Markets and with our Customers. Our products and Services are personalised and adapted to meet specific customer and market needs. Our Products and Services have a significant advantage over our competitors in one of the key Value Disciplines. Product Leadership, Customer Intimacy or Operational Excellence New and Changed Products and Services include new and emerging technologies, leverage open and proprietary data, include Simulation, Digital Twins, AI, AR, VR where appropriate to shorten time to market and maximise value over their life cycle. Product life-cycle extensions included in Roadmap and plans. Experiment with New Business, Operating and Capability Models enabled by emerging technologies. 7 Leadership Our Offerings are seen as market leading through the effective selection and deployment of technology and early adoption where appropriate. Our engagement, leverage and influence of related Digital Ecosystems provides us with early visibility of opportunities and we continually review our proposition and potential to spin out products/services and to collaborate and JV with others to innovate new Offerings and find new Markets. Offering leadership (Products & Services) must be maintained by continuous scanning (Digitally) to understand new customer, market, environment and ecosystem. Collaborations with Innovators in Industry and Academia as well as contributions to regenerate Offering propositions and spend off new ventures that support new offerings and new markets.