This article is the second in a 3-part series about Digital Transformation Models and Frameworks. Part-1 was an amplified summary and point of view edition of a research conducted by Jimmy Bumann and Professor Dr. Marc K. Peter – November 2019 titled “Action Fields of Digital Transformation – A Review and Comparative Analysis of Digital Transformation Maturity Models and Frameworks.”
In Part-2, I shed more light and examined other existing digital transformation models and frameworks in the market from the:
- world’s top IT services, digital transformation consulting companies: Accenture, BCG, Capgemini, Cognizant, Deloitte, DXC, EY, IBM, KPMG, McKinsey, MIT, PwC;
- world’s esteemed digital transformation research, executive education, advisory, and independent experts and organizations: Gartner, Altimeter Group (a Prophet company), Ionology (by Niall McKeown), CXO-THRIVE (by Rob Llewellyn), and the Digital Capability Model (by Jace An – author of “77 Building Blocks of Digital Transformation” book);
- world’s valued communities and forums: “Digital Mastermind” DX Framework (by Open-ROADS Community) and DX Industry Framework (by TMForum Community).
The comparison table below illustrates and provides the analytical result for the listed digital transformation frameworks and what makes each framework special. To get started, I have a few general comments about what makes one framework better than another.
Digital transformation is an evolving trend, but some organizations may not be capable of managing to succeed in the transformation. As I mentioned in Part-1, organizations need to be leveraging a digital transformation framework that assists them as guidance and as a roadmap to achieve a successful digital transformation.
But before deep-diving into the different frameworks available in the marketplace, let me shed light on a fundamental aspect of the transformation in the board room agenda’s discussion. There are three layers in an organization that will experience change, hence transformation:
- CxO & Board Executives layer
- Business Units layers
- Digital Transformation Execution layer
One of the essential things for any Board, CxO, or leadership team to understand is that everything will constantly (but digitally) change. As a result, the single most crucial thing that needs to change at all levels of the organization is the right mindset/attitude to adapt and adjust as the digital journey unfolds. People need to think differently and be vigorous in the face of continuous digital change. Having the proper digital transformation framework is one tool that will assist organizations with the digital evolution. However, it too needs to be an adaptable framework and continuum to whatever the organization, its people, and customers encounter along the digital journey.
Adopting a digital journey necessitates understanding some fundamentals. In this article, let me talk you and walk you through some eminent essential basics by defining and responding to three “What” questions: What is really Digital Transformation? What is the Digital Transformation framework? What is the importance of the digital transformation framework?
Well, it depends; the definition is varied based on who defines it as a consulting firm, a technology provider, a researcher, or a digital transformation implementer?
Here are few example organizations who redefined their digital adaptation journey differently by changing or adopting different business models:
But one thing for sure and agreed upon by different industries that DX is not about technologies. Digital Transformation indeed is Business Transformation. That is why I tend to disagree with the blurred definition by Gartner above. However, there are many common definitions that most industries and organizations built consensus around; here are two by IDC and AIMultiple.
On the other hand, the digital transformation framework works as a roadmap of what digital strategies guide your business in a competitive, growing business landscape. It is a reference point and basis of digital transformation projects’ implementation. It aims to improve business processes’ digital optimization by identifying the goals of digitization.
Why we need a framework to implement Digital Transformation?
It is a fact that digital change (transformation) comes with a high degree of failure. McKinsey’s research shows the success rates are low. Less than 30% of companies succeed. It is also a fact that digital change comes with a high degree of resistance. You may have the executive team’s support, but what does the rest of your organization regard the digital change?
All (I have not perceived otherwise) digital transformation consulting firms and digital services providers blame clients for the low percentage of success (culture, resistance, governance, change/transformation management, commitment, etc.). The coin has two sides in my sight: one is for a customer, and one is for a consulting firm. Consulting services fatigue phenomenon is what consulting firms and digital services providers face and contribute to the low percentage of digital success. Having tens of digital transformation frameworks indicate and proof this phenomenon. Each firm perceives the digital transformation (thru their Digital Transformation framework) differently and promotes it as the proper framework for the success of the digital change. . .
While digital transformation frameworks alone cannot ensure success, they should mitigate failure. In fact, authors published their digital transformation frameworks subsequent to years of academic research achieved. Hence, a lot of learning about what to do and what not to do was supposed to be captured in the contents’ published Digital Transformation frameworks.
For example, a good digital transformation framework dismisses a myth that DX is about digitizing processes and choosing disruptive technology. Digital transformation is more about transforming people than technology. In a report by Accenture, the firm states that 75% of obstacles blocking digital transformation success today are non-technical factors.
These comments by Accenture were echoed by MIT Sloan and in a report published by the consulting firm Capgemini, suggesting that missing skills was a gap in an organization’s digital transformation roadmap. Capgemini names culture as the most prominent hurdle organizations face in realizing a digital change in the second piece of research.
Which are the best Digital Transformation frameworks? Who tops them?
Each of the big consulting firms and Information Technology Services conglomerates recognizes that digital transformation is essential for their business continuity and their customers and therefore built their proprietary digital transformation framework. But which firms are offering better frameworks and transformation foundations?
This article’s review and analysis covered 20 different frameworks. Still, do not expect to find instructions on using their frameworks. However, most framework authors gave some explanation, a diminutive published in how to deploy the framework. I found trivial information in the way of how to use each framework. A personal demonstration of each framework by the frameworks’ author would reveal more detail and give a more accurate review (non-found). I presume they want you to contact them for an apparent reason $$$$.
Nevertheless, frameworks should not be prescriptive. Instead, any framework’s author should openly encourage the user to adjust and modify the digital transformation framework and its components to suit their situation and corporate environment. I would also strongly advise avoiding a piecemeal digital transformation approach to adopting digital. You will risk divided and uncoordinated operations that hinder and suffocate digital innovation and success if you do.
How had each framework been reviewed and appraised?
Consequently, I based the review’s methodology conducted at this juncture on the following elements:
- What has been published in the public domain of the concerned digital transformation framework firm(s), the owner(s), builder(s), or author(s).
- First impressions on and contents of the frameworks revealed.
- The review focuses on the digital transformation model, not the author(s).
- The business sub-domains highlighted here are not precisely similar to the ones covered by Bumann and Professor Dr. Peter in Part-1 of this article. The sub-domains are either amplified, modified, or replaced with new ones, but overall, they cover most standard business domains.
- The below instituted 27 business sub-domains out of the seven core business capabilities portrayed in the one STOP-3C model (described in the Part-1 article).
- Each of the 27 business sub-domains has been examined and distributed to the “importance” measurements using the MOSCOW prioritizationtechnique.
- An overall weighted average score for each framework has been calculated and ranked.
- A p-value of 1% represents type-1 (false positive) error of alpha level (α) on this analysis.
I strongly deem any framework should focus on the below (standard digital) 27 business sub-domains in its coverage for a successful digital transformation. What I value the most and should be the main drivers for the digital transformation journey (go/no-go) decision are the data analytics technology maturity, the customer-centricity, the business capabilities, and the organization’s culture:
Must-haves: most vital business sub-domains that are mandatory for the DX. (colored in red and importance scale is between 10 & 9)
- Digital-first Leadership:board, investors, stakeholder expectations, and commitments.
- Digital Strategy:shared vision & understanding, organization alignment, response, big picture, budget/funds, journey, benchmark, plan, and roadmap.
- Business Design:Digital Design & Business Models.
- Customer-centricity Management:insights, relationship, engagement, interaction, customer experience journey.
- People Digital Capabilities:skill, talents, team agility, roles, ownership, reward, coaches, and mentors.
- Business Digital Capabilities:responsiveness, business agility, analytics & insights-driven process, operational excellence.
- Optimization Digital Capabilities:intelligent automation, core processes, operating model.
- Transformation Management:agile change strategy, cases/initiatives, prioritization, methodology, assessment/tracking, readiness, tools, Objective & Key Results (OKR), and gaps management.
- Digital Technology Capabilities:Social Media
- Digital Technology Capabilities:Mobile/Mobility
- Digital Technology Capabilities:(Big) Data & Analytics
Should-haves: important business sub-domains that are not vital but add significant value. (colored in red and importance scale is between 8 & 7)
- Human-Centric:collaboration, innovation, and design thinking.
- Corporate Culture:mindset, employee journey, digital culture, team empowerment, lean start-up culture, learning programs, knowledge sharing.
- Opportunities:identifications and recognition.
- Constraints Management:barriers, threats, digital risk, mitigation, digital policies & regulations, challenges, privacy.
- Integrated Service Management:data strategy, process & technology, APIs, microservices, physical/digital channels mix & optimization, touchpoints, platforms, environment, self-service, the digital user.
- Values (Internal & External):RODI, revenue, quick wins, digital products/services (offerings), value propositions, new cost model, customer value, market share, profitability, efficiency.
- Framework Clarity:simplicity, implementation approach, bringing clearness to a complex task.
- Digital Technology Capabilities:Cloud.
- Digital Technology Capabilities:Internet-of-Things.
- Digital Technology Capabilities:Artificial Intelligent, Robotics, Machine Learning, Blockchain, RPA, 5G, other.
Could-haves: nice to have business sub-domains that will have a negligible impact of left out. (colored in red and importance scale is between 6 & 5)
- Digital Ecosystem Capabilities & Management:external users, partners, resources, and value supply chain.
- Agility Management:business resiliency, governance, accountability, ownership, delivery models, performance monitoring & control.
- Market Management:model, trend, competition, GTM speed.
- Digital Marketing:branding, content strategy & moderation, personalization, data monetization models.
- Digital Asset Management:infrastructure, cyber-security, network, architecture, physical assets, legacy, 3rd party.
- Sustainability:digital sustainability & operability, scalability, organization’s purpose-, short- and long-term shared goals.
Wish-to-haves: business sub-domains that are not a priority for this specific time frame. (colored in blue and importance scale is between 4 and 1)
- Not covered / Not Applicable
The Result – Putting it All Together
I conducted this independent scrutiny to covering other frameworks and models not mentioned in Part-1, utilizing almost a similar methodology and approach to the research undertaken by Jimmy Bumann and Professor Dr. Marc K. Peter in 2019.
I wanted to review a few other frameworks, but I could not do so due to the lack of or unclear information furnished. Altimeter, Ionology, Deloitte, and EY all offer digital transformation frameworks, which I am sure, if demonstrated personally, could be reviewed.
Key Takeaways, Observations, and Results
- I spent a reasonable period between Q3-2020 to Q2-2021on exhaustive and systematic effort to review and analyze 20 frameworksin digital transformation (DX).
- The history of digital transformation goes back further than you may expect. Its roots extend to the 1940s and are likely to continue affecting the global business landscape for decades to come.
- I reviewed many of the DX frameworks drenched in years of academic research, such as frameworks developed by Capgemini, PwC, McKinsey, and Ionologyalike. However, be cautioned. Other DX frameworks are akin to the thinking of a three-year-old. Seriously, these DX frameworks are shocking. They are like generic project management workflows that you could apply to as home backyard gardening.
- McKinsey’s research shows that a low rate of digital transformation success (less than 30%) did not come from a vacuum. One of the two causes is the fatigue phenomenon that consulting firms and digital services providers are experiencing. Digital transformation consulting services is NOT like any traditional consulting services. . .
- Digital transformation frameworks have a few other designations: digital transformation strategy, digital business transformation, digital industrial transformation framework, digital maturity model, digital enterprise framework, customer experience transformation, and digital transformation strategy roadmap.They are all commonly regarded as or related to Digital Transformation Framework.
- The top ten(representing 37%) identified fully or partially highlighted dimensions:
- Business Design (in 20 frameworks),
- Customer-centricity Management, Digital People Capabilities, Human Centric, Integrated Service Management, Values (in 19 frameworks),
- Digital Strategy, Optimization Digital Capabilities, DigiTech Capabilities-Big Data & Analytics (in 18 frameworks), and
- Business Digital Capabilities (in 17 frameworks).
- The middle eight(representing 30%) identified fully or partially highlighted dimensions:
- Transformation Management (in 16 frameworks),
- Opportunities, DigiTech Capabilities-Mobile/Mobility, Digital Ecosystem Capabilities, Agility Management, Digital Marketing (in 15 frameworks), and
- Corporate Culture, DigiTech Capabilities-AI, ML, RPA, 5G, Robotics, Blockchain, other (in 14 frameworks)
- The bottom nine(representing 33%) identified fully or partially highlighted dimensions:
- Constraints Management, Framework Clarity, DigiTech Capabilities-Social Media, DigiTech Capabilities-Cloud (in 13 frameworks),
- Digital-first Leadership, DigiTech Capabilities-IoT (in 12 frameworks),
- Market Management, Digital Asset Management (in 11 frameworks), and
- Sustainability (in 9 frameworks).
- Many digital transformation frameworks from Open-ROADS, Deloitte-TMForum, BCG, TDCM, Capgemini-2018, DXC, and MIT stand out, and others are lie-flat from the EY, Gartner, and KPMG:
- The top five Digital Transformation Frameworks are:
- While the top five digital transformation frameworks from Open-ROADS, Deloitte-TMForum, BCG, TDCM, Capgemini-2018, DXC, and MIT stand out, you will not be able to apply these frameworks. There are no user guides in the public domain, so you will have to become a paying customer first. Maybe the only exception is the Open-ROADS.
- Even with the help of consultants and a few hundred thousand dollars, do not expect to roll out these frameworks swiftly. They are not as simple as they look and require a lot of customization.
- The top five business domains that scored high value (# occarances in frameworks) are:
- Only four frameworks (BCG, Capgemini-2018, EY, and The Digital Capability Model) accentuated sustainability,and four frameworks (DXC, McKinsey, MIT, PWC) stressed scalability.
- The Accenture DX framework scored 73.53%; Cross-industry focuswas difficult to track with minimum and unclear information found. Accenture Digital Transformation Framework (Playbook) is a missing treasure. It has been declared in December 2019 in the public domain and then disappeared since then. However, I reviewed their Digital Business Strategy Framework instead. For the last 15 years, Accenture has digitally transformed its business. Employees have the freedom to choose when, where, and how they work. There has been a reinvention of client relationship management – they now use more collaboration tools available in the cloud. Accenture has written several industry-specific DX frameworks, including one for the manufacturing sector. They call it the Digital Factory and outlined eleven enablers. According to the 2015 Accenture Strategy Global Manufacturing Study, greater adoption of these enablers can lead to more robust and sustainable business performance. In 2019 Accenture released a digital transformation framework titled The Digital Enterprise Framework. The one I reviewed in this study is Accenture’s digital business strategy framework that addresses the decisions, actions, and investments required to build a digital business. Accompanying this framework are questions leaders must ask themselves. What are the digital disruption opportunities, threats, and outcomes? How will enabling technologies and trends support differentiation and sustainable growth? Like Capgemini, Accenture places digital technology at the bottom, suggesting it supports and enables rather than leads.
- Boston Consulting GroupDX framework scored 86.01%; Cross-industry focus. BCG divides the digital transformation process into three layers. Short-term quick win, medium-term plans, and long-term sustainability and transformation. Funding the journey: Digital transformation is a time-sinking process, and digital investments of an organization may fail to generate returns more than the cost of capital during this process. However, boards and shareholders always expect to see immediate results. Therefore, businesses should develop short-term initiatives that will provide quick cash to fund the upcoming long-term initiatives. Wining in the medium term: This layer is where the realization of transform starts across the organization. Businesses focus on redesigning business and operating models. Digital initiatives are mostly about the way the company delivers products and services to its customers. Businesses identify customer segments and products, and services they will offer to each segment. Results of these initiatives are expected to be seen in the medium term. Organizing for sustained performance: Culture change among executives and employees is a key indicator of the success and sustainability of digitization. Without an innovative culture, digital transformation is destined to fail. Executives should enable the people working within them to contribute, grow, innovate, and be more productive. Organizations should design a culture that supports the high performance of people.
- CapgeminiDX frameworks: 2012 edition scored 72.89%, and the 2018 edition scored 85.73% – both Cross-industry focus was challenging trajectory as no explicit declaration of the evolution to the new framework. However, the 2018 Capgemini framework is one of the Top Five Digital Transformation frameworks as per this analysis. Like Accenture, Capgemini places digital technology at the bottom, suggesting it supports rather than leads. Capgemini’s DX framework encourages organizations to go beyond digital wrapping traditional products and (instead) innovate new products that are digitally native. Capgemini’s DX framework digitally transforms three critical areas of an enterprise: customer experience, operational processes, and business models. Capgemini DX framework also addresses value (products & services) propositions.
- CognizantDX framework scored 76.10%; Cross-industry focus. Cognizant claims to have analyzed digital transformation across several industries. They have found four common elements that apply to most companies making a digital transformation in both the B2C and B2B markets. Cognizant’s DX framework addresses four common elements: customer experience, operations, products & services, and the organization. Cognizant has an entire part dedicated to digitizing the customer experience, including customer insights. Cognizant’s DX framework recognizes new pricing models are important. The framework is moderately easy to use. Unfortunately, digital marketing has been put together under the “the Customer” element. Indeed, digital marketing is not strictly part of digital transformation, and it does not necessarily help customers. Most customers will tell you that they hate advertising. I was surprised that there was no mention of the culture as part of digitizing the organization. The framework mentions plunking into partner ecosystems. This business concept was relevant 30 years ago. It is common sense, and I don’t see a new disruptive concept recommended.
- DeloitteDX frameworks: 2017 edition scored 72.43%, and the 2019 edition powered by TMForum scored 90.64%. Deloitte releases two DX frameworks, one published in 2017 by Deloitte’s digital arm – called Deloitte Industrial Transformation Framework and focused on Manufacturing, Energy, and Construction industries. The other was published in 2019 and powered by TMForum Community – called Deloitte Industrial Transformation Framework and focused on the Telecommunication industry. Deloitte’s Digital Industrial Transformation framework presents five essential questions. Each question is centered around the concept of business agility, digital adoption, and customer success: What is our winning aspiration? Where will we choose to play? What capabilities are needed? Which capabilities must be built, refined, or outsourced? What business processes, technology, and management systems are required?
- DXC TechnologyDX framework scored 80.28%; Cross-industry focus. The company is in the midst of a transformation of its strategy towards helping clients navigate the embrace of digital business. DXC offers a reality check when making digital changes. DXC defined digital change as a powerful business transformation, forcing enterprises to extend, defend and recreate their businesses. According to DXC, the consumer is in charge and will define the enterprise’s next move in the digital world. The DXC DX framework includes four sources of digital value creation: (1) Digital Customer Experience, (2) Business Model Innovation, (3) Digital Business Process Transformation, (4) Digital Technology Core. Like MIT and Capgemini, DXC’s digital transformation framework puts customers first. DXC’s DX framework uses customer journeys to identify new (digital) opportunities. The Digital Customer Experience piece is comprehensive. Like Capgemini and McKinsey, they touch upon customer journeys and take it one step further. DXC claims these journeys need to be ‘intelligent,’ ‘digital-first, and ‘omni-channel. Their Business Model Innovation piece is very self-possessed. It helps anticipate asymmetrical competition (asymmetrical competition example: Apple starts offering Apple Pay, and then launches a digital bank). On the other side, like MIT and Cognizant, the DXC DX framework gives basic and common-sense business advice (… keep what you manage to a minimum, focus on core competency, and outsource what you can). Such common-sense distracts from what is digitally important.
- Unfortunately, Ernst & Young‘s DX framework achieved a lower score (43.81% – Cross-industry focus) than expected due to no reference to Digital Technology found and searching the public domain. I could not find enough information about EY’s Digital Transformation framework. The EY DX framework is divided into six parts: the bridge, the engine room, innovation, design, deploy and digital factory.
- GartnerDX framework scored 66.74%; Cross-industry focus. Jorge Lopez, research Vice President at Gartner, defined digital transformation as “the process of exploiting digital technologies and supporting capabilities to create a robust new business model.” Gartner claimed that “Two-thirds of all business leaders believe that their companies must pick up the pace of digitalization to remain competitive.” This is echoed by Gartner’s discovery that 4 in 10 CEOs are taking a digital-first approach to business change. Others are taking digital “to the core of their enterprise model.” However, Gartner says that because transformation requires “commitment, leadership, strategy, technology, innovation and importantly, money,” funding is a concern. Gartner has identified their eight critical components — building blocks — required when planning, directing, and evolving digital workplace programs. Gartner claims that digital adoption solutions can greatly accelerate digital adoption and transformation efforts. Digital adoption solutions (platforms – DAPs) – have been recognized by Gartner as a valuable tool for boosting performance. In one study, they found that digital adoption solutions can boost productivity, save time and money, improve user experiences, and more. Gartner wrote a six-step DX framework, enabling CIOs and other business leaders to build a successful digital enterprise. Gartner, like Accenture, placed shared beliefs first. They call stage one of their DX framework ‘shared understanding.’ Stage 2 of the Gartner DX framework suggests putting in place the right leadership. Technology transformation is useless unless people transform. Step 3 of the Gartner DX framework suggesting the organization be supported by a digital excellence team. Think of these people as coaches and mentors. However, Gartner’s DX framework does not appear to address the customer to the degree that McKinsey’s framework does. While it is practical to address leadership before making change, this concept has been around a long time and is broader; what is digitally new?
- IBMDX framework scored 72.71%; Cross-industry focus. With the analysis of leading companies and experience with clients, IBM has found that companies with a cohesive strategy for integrating digital and physical elements can successfully transform their business models. IBM states that these companies focus on two complementary elements: reshaping customer value propositionsand redefining transforming operating models using digital technologies for greater customer interaction and collaboration. To do so, they are building a new set of capabilities that allows them to progress along both dimensions. IBM DX framework exemplifies the two elements. Reshaping the customer value proposition – using information & analytics, organizations can reshape the customer value proposition on three levels by enhancing, extending, or redefining the value of the customer experience. Redefining the operating models – the extent to which one transforms the operating model is also correlated to the efficiency and productivity gains that can be achieved. IBM DX framework draws strategic paths to digital transformation. From their research and client experience, IBM found that three basic approaches can summarize the strategic routes to transformation: One focuses on extensive customer value propositions and another on transforming the operating model. The third combines those two approaches. Determining the best path to transformation requires a thorough understanding and evaluation of several factors: • Where products and services are on the physical-to-digital continuum • Mobility and social networking adoption levels and expectations of customers • Strategic moves by other industry players • The degree of integration at every stage of the transformation – between new digital processes and legacy, physical ones.
- KPMGDX framework scored 70.83%; Industry-4.0 focus. KPMG has done a project with Rolodex Agency to increase awareness of digital transformation among its staff and partners. KPMG developed a pop-up podcast studio where experts, higher management, clients, and the workforce could start digital dialogues to discuss consulting matters. Like PwC and KPMG are talking about Industry 4.0, or i4.0 as KPMG calls it. They have identified six dimensions of i4.0 (Strategy & Business Model, Technology & Systems, Government & Risk Management, People, Operational Excellence, Customer Experience). Each dimension of KPMG’s digital transformation framework addresses a side of digital transformation. Unfortunately, searching the public domain, I could not find more information about KPMG’s DX framework.
- McKinseyDX framework scored 78.67%; Cross-industry focus. McKinsey has a proprietary DX framework called the 4Ds. The 4D’s of digital transformation are Discovery, Design, Deliver, and De-risk. It appears that McKinsey recently redefined its 4Ds digital transformation framework; the acronym 4Ds is now short for Data, Decisioning, Design, and Distribution. McKinsey has also created a framework named the six building blocks for creating a high-performing digital enterprise. They claim this framework provides executives with a coherent structure for planning and managing large-scale digital transformation. McKinsey’s six building blocks include strategy and innovation, customer decision journey, process automation, organization, technology, data & analytics.
- MIT Sloan DX framework scored 80.23%; Cross-industry focus. MIT’s framework was easy to review thanks to the anecdotal information provided by Dr. Jeanne Ross in her book (Designed for Digital: How to Architect Your Business for Sustained Success – 2019). Sources claim that MIT and Capgemini were responsible for writing the first digital transformation framework together. However, it appears MIT took its digital transformation framework in a new direction. MIT’s DX framework emphasizes customers and points organizations to develop a lake of intelligence about both customer problems and solutions. The accountability block tries to break down organizational barriers as a means of transforming. Create a start-up culture where it is possible to make mistakes and still succeed. However, MIT’s five building blocks to digital transformation framework begin with operations, not customers. One block is devoted to a marketplace (external developer platform). External developer platform allows organizations to scale up what is internally working. An external developer platform helps foster delivering end-to-end solutions to customers, much in the way that Amazon and Apple have extended their platforms with integrated services offerings from partners. The idea of not building everything and outsourcing is not a new idea. Business advisors since the 1970s have been telling business leaders to focus on core competencies and outsourcing non-core business functions.
- PwCDX framework scored 77.29%; Industry-4.0 focus. PWC indicates digital transformation as Industry 4.0. Industry 4.0 is an outgrowth of the third industrial revolution, which transformed the nature of commerce in the second half of the 20th century. “Industry 4.0” refers to the fourth industrial revolution, which connects machines, people, and physical assets into an integrated digital ecosystem that seamlessly generates, analyzes, and communicates data at scale. When PwC researched Industry-4.0 in 2014, companies knew about digital transformation, but few were making real digital changes. In 2016, PwC claims the trend changed. For many companies, Industry-4.0 digital transformation is now at the heart of their strategy. PwC offers some advice on how to apply Industry 4.0 DX framework to enterprise organizations. Advice such as establishing a DX budget, measuring return on digital investment (RODI), identifying effective strategies, and scaling up the initial investment. Also, PwC offers a digital transformation roadmap. Their digital transformation roadmap considers other factors affecting the customer.
- AltimeterDX framework by Brian Solis scored 76.33%; Cross-industry focus. The Altimeter is a Prophet (parent organization) company and an analyst firm that provides research and advisory on disruptive technologies and strategies to help leaders drive business. After several years of research, the author of the Altimeter DX framework, Brian Solis, identified a series of patterns and processes that form a strong foundation for digital transformation change. The Altimeter Six Stages of Digital Transformation grouped those patterns into six distinct stages: Business as Usual, Present and Active, Formalized, Strategic, Converged, Innovative and Adaptive. Collectively, these phases serve as a digital maturity blueprint to guide purposeful and advantageous digital transformation. Altimeter of digital transformation is centered on the Digital Customer Experience (DCX) and thus reflects one of many paths toward digital change. Altimeter found that DCX was an essential catalyst in driving the evolution of business and technology and other market factors. Unfortunately, searching the public domain, I could not find more information about Altimeter’s DX framework.
- IonologyDX framework by Niall McKeown scored 73.44%; Cross-industry focus. Ionology is a late entrant to the (digital) consulting business. Their CEO Niall McKeown founded the company in 1999 and transcribed a DX framework they call the (7 Building Blocks) 7 Principles of Digital Business Strategy as the framework to transformation. The 7 Principles framework allows the entire C-Suite to engage in non-technical discussions that lead to technical actions that ensure progress is being made. It changes how the C-Suite looks at digital and allows them to communicate as one with a shared language and terminology. The 7 Principles process includes a precise diagnosis of the business’s challenges, a thorough roadmap of the transformation journey, and a strategy to get you there. The Ionology DX framework 7 Principles are Know yourself, Customers, Marketplace, Resources, Market position, Engine of growth, and Tactics. Technology is not one of the building blocks; instead, it is a combination of all seven blocks. Ionology assumes technology to be the driver of digital transformation. However, Ionology believes each of these seven blocks is required for digital transformation. The framework uses data to understand what is happening in your marketplace, who your competitors are, how much momentum they have, and how you can create a plan to displace them? It also uses data to understand if you can attract enough customers with your value proposition.
- CXO TransformDX framework by Rob Llewellyn scored 80.73%; Cross-industry focus. As Founder and Chief Executive Officer of CXO Transform, Rob has already helped equip thousands of managers and leaders to orchestrate transformation in just a handful of years. Three common takeaways from Rob Llewellyn’s Digital Transformation Framework explained. (1) Organization’s digital transformation needs to support strategy: One question to ask is how your organization is responding strategically to digital transformation? Are you transforming to defend your position in the market or are you taking a more offensive approach and transforming to disrupt the market? You also want to figure out how transformational you want your organization to be and what category of transformation your strategic objectives fit into. Are you transforming the business model? The operations? The workforce? Or the products and services you provide your customers? Once you figure out the company’s strategic objectives, you can then begin your digital execution, which should support the fundamental strategic objectives of the business. (2) Need to orchestrate DX holistically: Digital transformation is a complex undertaking and therefore requires careful orchestration. Focus on building applications is not enough and not the solution. It is essential (a) to build your transformation team with the people who can get your innovation initiatives off the ground, (b) to consider who is managing the business benefits, who is managing the project, and how it interfaces with other projects, ensuring that governance is embedded and managing stakeholders, (c) to focus on the process and collaboration versus the technology. (3) Need to deliver value to the business: to get past the start phase of digital transformation and continue to structure and scale, you must demonstrate how your digital transformation projects deliver value to the business. One way to do this is to celebrate the success of your first project. Every significant change starts small, and with success, grows. This is why it is so vital to pick the right first digital transformation project. You want your first successful project to be a catalyst for additional projects. People like to be associated with success, and when they see it, they will quickly want to be a part of it. If you can deliver benefits to the business that make the CEO and CFO happy, you can win their hearts and future investment.
- The Digital Capability Model (TDCM) DX framework by Jace An scored 86.93%; Cross-industry focus; gained a lower score than expected due to its focus on marketing and sales. In his book, titled “77 Building Blocks of Digital Transformation”, Jac cited that The Digital Capability Model is (a) comprehensive in scope (b)best suited for those who desire to have a broad understanding of the entire scope of digital capabilities and (c) want to use a holistic approach to improve the performance of their digital business. Jac also defines a digital capability as “an organizational capacity and ability to produce the intended business outcome in the digital space by combining process, people, and technology elements in a way that is unique to each organization. However, based on my review and search, I found out that the TDCM framework (a) is used to diagnose and design business capabilities required for digital business transformation, (b) is heavily focusing on the operational areas of marketing and sales, (c) most digital capabilities mentioned in the framework are aligned with customer journeys toward purchasing, and (d) the digital capabilities mentioned in the framework are relevant to many different marketing approaches.
- Open-ROADS Community developed two frameworks. The Open Digital Maturity Model (ODMM)is an assessment tool that benchmarks an organization’s current digital maturity level against its own digital transformation goals and the performance of best-in-class organizations. The other one is Digital Mastermind, a holistic framework for navigating the digital transformation journey. Open-ROADS Community created the Digital Mastermind to enable organizations to plan and execute their entire transformation journey, adopting a “vision for growth, identify a scenario, start small, think big, and scale fast” strategy. It helps benchmark an organization’s current digital maturity and provides a step-by-step guide to defining objectives, strategy, operations, and the time and investment needed to complete the transformation. The combined analysis of both Open-ROADS’s frameworks scored the highest among all frameworks scored 94.22%; Cross-industry focus.