Do You Have A Digital Advantage?

Social media, analytics and mobile accessibility are changing the business world at a rapid pace. Does your business forfeit this digital advantage or instead become digitally mature?
If you are technologically savvy you will know that the web offers incredible marketing, education and networking options. If however you are lacking in digital literacy, you may be what Capgemini Consulting calls “digitally immature”, or not making the most of your “digital advantage”. In a study conducted by the firm they investigate what it takes to make the most of our digital connections and opportunities with accelerated technologies and the World Wide Web.
What is digital maturity?
Digital maturity is “a combination of two separate but related dimensions”, the first being “digital intensity” and the second “transformation management intensity”. Businesses that are digitally mature have proven to be more profitable and successful in every industry and drive enterprise-wide transformations. Digital maturity is what separates the industry bystanders from the innovators and trendsetters of the future.
Digital intensity is defined by the effort your business makes to invest in technology-enabled initiatives to change how your business operates. For example, this means including RFID (radio frequency identification) tags on packages to easily track in and outbound inventory with a swipe of a device, or investing in your site’s search engine optimization (SEO). These digital investments can streamline operations and develop brand recognition, but if not executed correctly can be expensive and potentially damaging, which is why our next point is also important.
Transformation management intensity is defined as “creating the leadership capabilities necessary to drive digital transformation in the organization”. This is the element that will take digital intensity to digital success. Without proper management, vision and implementation, results  have a tendency to run amok.
Businesses can be broken down into four categories:
Beginners. Suffer from a lack of digital intensity and transformation management intensity.
Fashionistas. Companies that have a high level of digital intensity but low to no transformation management intensity.
Conservatives. Firms that demonstrate high transformation management intensity but haven’t made the jump to increase digital intensity.
Digirati. Businesses that offer high levels of both digital intensity and transformation management intensity: the best of both worlds. This category includes innovative and fluid companies who are paving the way for the rest of the world.
Companies that have mastered both digital intensity and transformation management intensity belong to a group the study has deemed “The Digirati”. According to the study, the Digirati “have the highest performance, far outperforming less-mature firms on multiple financial measures”. These benefits include revenue, profitability and market valuation, but this elusive group only represents 25% of businesses.
Digital intensity can be found in every market and industry around the world. Manufacturing, pharmaceutical and retail industries have been found to hold the highest numbers of Digirati (32-45%), while travel, hospitality and telecom companies have the lowest percentages (0-4%).
The study identified four core transformation practices that allow companies to leave the beginning stages and reach the Digirati level of digital maturity. By having (1) a transformative vision for the future with (2) effective rules and coordination, (3) maximum engagement and (4) productive IT-Business relationships, any business can develop their digital maturity.
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