What is a digital transformation index? Do you know what its purpose is and how it can help you and your company with your transformation journey? Find out below.
Digital Transformation Index
A digital transformation index is a measurement of the company’s digital transformation maturity. The purpose of it is to help the people involved in digital transformation projects to understand where they are currently with the transformation. Then, what the current phase of their project is, and how many steps they still have to go, and what’s left to be done.
Further, this index is created by the people who are involved in the transformation project (mostly by business analysts, technologists, and managers). The index also has several stages (usually 4-5) and each stage has several levels (usually 3-4). The stages are usually described with words like “know”, “understand”, “mastery”, “lead”, “inspire”, “evangelize”, and more. The levels are usually named like “beginner”, “expert”, “leader” etc.
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Then, the digital transformation index has three major components:
- Vision – an ideal state that needs to be achieved;
- Objectives – general objectives that need to be achieved;
- Strategies – specific strategies (activities) about how the transformation needs to be done.
It can also include other components like:
- Metrics – measurements for evaluating the process;
- Information about people who will be involved;
- Information about technology or software that will be used;
- Details about software and processes that need to be replaced (and which one);
- Details about infrastructure changes that need to be made;
- Information about cultural changes that need to be made;
- Other information that will help with the transformation.
How to Make a Digital Transformation Index
How, then, do you make an index? First, you need to assess where your company is now – what are its strengths and weaknesses? What are the gaps? What are the opportunities? You need to assess what your vision is, what you need to achieve, and how you’re going to do it.
Then, you need to identify levels of achievement for each stage. Finally, you need to identify what resources are needed for each stage.
So, how do you assess where your company is now? You can start by creating a SWOT analysis of the current situation. Then create a list of all strengths, weaknesses, opportunities, and threats that are relevant to your company.
Then, you need to analyze your products and services. What are their strengths and weaknesses? What are the gaps in the market that you can fill with these products or services?
Next up, create a list of all digital transformation initiatives that you have already started or completed. Then use this list to identify competencies that your company already has. Use this information to create an overview of your company’s current situation.
Then, how do you identify the vision? The vision is the ideal state that needs to be achieved with digital transformation. Then, the objectives describe general things that need to be achieved with digital transformation.
So, if you are planning to transform, make sure you have this index. Make one that will fill the needs of your company.