Measuring Digital Capabilities in Four Fields

The effect of the transformation of Domino's Pizza Company shows us the importance of digital transformation. I read "the road to digital transformation" two days ago. I'm interested in talking about the four areas of measuring digital ability, so I'd like to share some views in the book with you. The author believes that to measure the achievements of digital organizational transformation, we often need to look at the four fields customers, products and services, operations, and workforce. The ability level shown in these four fields represents the maturity of digital organizational transformation.

1. The Customer Fields

Among the four fields of digital transformation, the most important is to pay attention to the digital transformation of the customer field. We should pay attention to customers because customers are the only source of corporate profits and the key to maintaining the organization's competitiveness. In the digital transformation, we need to pay enough attention to customer needs and improve customer satisfaction and loyalty to ensure profits.

Digitalization enhances the ability of organizations to gain customer insight. Organizations can use digitization to "portrait" customers, analyze customers from multiple dimensions, and adjust their products to meet market demand. For example, Tmall appropriately adjusts the home page according to the search preferences of each user so that the home page can be "thousands of people and thousands of faces"; The recommendation of Meituan takeout will also be adjusted according to the user's preference for searching and ordering.

2. The Products and Services Field

Products and services are the foundation of an organization's core competitiveness. The application of digital technology in products and services can inject new growth power into the organization.

Digitalization endows products with new value and charm. Meeting the rich, personalized needs, especially the needs of the new generation, will bring new changes to products. For example, with the shift of the automobile in recent years, the intelligent auto has gradually come into people's vision.

Image Source: The Products and Services Field

Digitalization will also reshape the business model. For example, you can see the figure for shared massage chairs and mini KTV when shopping. From traditional products to services, this is the transformation of the digital age.

3. The Operation Field

The operation field is the most obvious and easily felt by the public in the digital transformation. Digital transformation within the organization requires internal changes to support external competition to ensure more significant benefits.

After the implementation of digitization, the whole organization will have significant changes in business and the performance of the organization's operations.

Image Source: The Operation Field

In addition, driving process reengineering and business model reform can achieve the digital and intelligent upgrading of business, finance, and human resource management, reduce operating costs, improve efficiency and generate more value.

4. Human Resources Field

Digitization expands the way of communication between people and breaks through the restrictions of time, space, and quantity.

With the development needs, everyone gradually accepts telecommuting, so the flat organizational structure will be more popular. In the digital age, the way of information transmission is broadcast. We can immediately convey the information to everyone in the organization, and everyone may become the node of information release. The fewer levels of the organization, the less bureaucracy, so that the organization can quickly respond to market changes.

As the executive subject of digital transformation, everyone in the organization also needs corresponding empowerment, and personnel digital literacy will become one of the enterprise's competitiveness.

We've been talking about when the digital transformation is not complete. Therefore, to continuously improve the maturity of digital transformation, we can comprehensively improve the capabilities in these four fields and make the road of digital transformation solid and robust.