Many businesses have no clue how effective their digital efforts are within and outside of the organization. Teams are reporting to executive vanity metrics and isolated analyses that don’t tell the whole picture. This leads to the continued state of “You don’t know, what you don’t know”.
This is a problem!
Understanding how you compare and how effective your organization is a digital competence practice can dramatically increase your ability to be efficient and effective at strategic operations, marketing and finance. This will translate to higher margins, lower cost of visibility, increased employee happiness, lower cost and an increased number of new customers.
Creating this scoring framework for your Digital Competence can bring structure and clarity to optimizing your business in two ways: ﬁrst, by deﬁning where digital technology has the greatest impact and, second, by providing a clear method for assessing how your company compares with the competition in capability areas that will be essential for success in the face of digital change.
A fact-based assessment of a company’s digital competence can provide executives & managers with the intelligence needed to keep moving in the same direction or make a pivot when the digital scorecard has raised red flags.
As an example:
In retail markets, the paramount priority may be creating highly relevant omnichannel customer experiences that build strong relationships with a target demographic.
For an auto supplier, on the other hand, the key issue may be how well it meets customer needs in areas like infotainment and assisted driving, or how effectively it deploys digital tools in its own business to manage its supply chain, inventories and product development.
Deﬁning where digital contributes the most value in a given industry is the ﬁrst step in assessing where a company falls on a spectrum of excellence and leadership. It also helps identify where insurgents are disrupting the status quo and how quickly.
Check out this graphic on how retail can leverage Digital effectively in 6 key areas
View more about how Private Equity firms use this in their due diligence process from this article by Bain: http://www.bain.com/publications/articles/measuring-companys-digital-competence.aspx