Digital maturity model

Digital maturity model is a tool to assist in the digitalization of a company. The model effectively assesses the current state of digitalization, identifies key gaps and helps the company with its digital strategy. Since the digitalization is a process that never ends, the model makes it possible to monitor the state of digitalization over time. The model uses a multidimensional criterion function of the key elements of digitalization.

Key elements

  • Processes
  • Organizational structure
  • Employees
  • Organizational culture
  • Technology
  • Customers
  • Data

Comprehensive, digitally supported processes that enable the use of technology and efficient capture, analysis and utilization of data in business processes. By doing so, companies can improve business efficiency and effectiveness. Some of the topics companies should address are the following:

    • Are business processes structured?
    • Is a change management concept incorporated?
    • Are roles and responsibilities clearly defined?

A way of organizing activities and tasks, coordination of employees and management to adapt to the digital transformation and to integrate digital business development more effectively throughout the organization. Some of the topics companies should address are the following:

    • Does the organization encourage collaboration and knowledge sharing across all departments and locations?
    • Are roles regarding data collection, data manipulation, new digital developments, IT support etc. clearly defined and assigned?
    • Are outsourcing requirements and expectations well defined?
    • Does organizational structure ensure that employees receive the necessary training on how to use digital systems and digital processes in their daily work?
    • Are actions and ideas for new digital activities initiated from the management as well as from employees?

Adequate knowledge of employees with regards to digital strategy. Some of the topics companies should address are the following:

    • Do employees across the organization possess a complete set of digital capabilities, competencies and skills which are continuously refreshed with learning and change programs?
    • Are employees well prepared and aware of the upcoming changes of a never-ending process of digitalization?
    • Are the people in the organization engaged, motivated, and prepared to participate in strategic changes within that organization?
    • Are the human resources for the processes regarding digitalization dedicated, with precisely defined roles?

A set of values, practices and general expectations of employees required for successful digitalization. Some of the topics companies should address are the following:

    • Does top management understand and support the digitalization?
    • Does top management actively support a digital growth culture across the organization?
    • Do employees across the organization actively support the digital development of the organization and its processes?
    • Are digital technologies and digitalization part of the corporate language and dialogue across the organization?
    • Is digital culture present in the organization, where managers and employees apply digital systems equally in their daily processes?

This dimension represents various combinations of information technology that organizations use in their processes, products and services. Some of the topics companies should address are the following:

    • Is a company employing and fully utilizing all basic components such as business applications, network, technology architecture, security, data and data analytics?
    • Does a company regularly address the potential of upcoming technologies such as robotics (RPA), Internet of Things - IoT, virtual or augmented reality, artificial intelligence, machine learning?

Comprehensive understanding of customers through and enabled by digitalization in terms of data collection, analysis and business processing via new digital channels. Some of the topics companies should address are the following:

    • Do customers and other partners play a key role in the company’s digital business development?
    • Do marketing, sales and distribution, and customer service departments effectively leverage digital and new technologies in order to deliver better SCM and CRM?
    • Is a company digitally connected with partners and customers to gather data across the value chain?
    • Does a company leverage its digital capabilities and competences in order to identify new trends on the market and respond to the changing conditions with a customized approach?

Comprehensive data management throughout the entire data lifecycle. Data is a fundamental component of digitalization, which is usually greatly underestimated. Some of the topics companies should address are the following:

    • Does a company appropriately manage and possess consistent and reliable data?
    • Does a company collect data in a structured manner across the organization’s functions and processes?
    • Are collected data and data analyses used to make better decisions by employees and management throughout business processes?

Selected references

Internal and regulatory stress testing support. Development or ARDL-BACE PD and LGD stress testing models, macroeconomic scenario generation tool and staging module.

EBA EU-Wide Stress Test Exercise, included IFRS9 PD/LGD model review, development of benchmark PD/LGD/EAD models, IFRS9 Impairment calculations, data, analytics and documentation for regulatory review and industrialization of Stress Test/ICAAP framework