Advances in Economics, Business and Management Research, volume 138

2nd International Scientific and Practical Conference “Modern Management Trends

and the Digital Economy: from Regional Development to Global Economic Growth” (MTDE 2020)

Digital Maturity: Definition and Model

Aslanova I.V.1,2,* Kulichkina A.I.1
1
Faculty of Business, Novosibirsk State Technical University, Novosibirsk, 630087, Russia
2
Faculty of Business, Novosibirsk State Technical University, Novosibirsk, 630087, Russia
*
Corresponding author. Email: [email protected]

ABSTRACT
Digital maturity is a phenomenon that has emerged along with the digital economy and Industry 4.0. Till now
there is no common definition and understating of this process, so this research topic has plenty of room to
study and explore. This article contains the definition of digital maturity based on the analysis of existing
definitions, as well as overview and analysis of digital maturity models. The new model of digital maturity is
as well represented, alongside with the first results received from applying it to clothing factory and oil and
gas equipment manufacturing organization. Recommendations for these two companies are given based on
results, recommendations were developed to help companies achieve a higher level of digital maturity and
improve their performance, help them to achieve their operational goals, etc.
Keywords: digital maturity, digitalization, maturity model, digital transformation

1. INTRODUCTION processes to achieve its goals and increase efficiency.

Along with digital transformation, digital maturity is
Digital transformation is a topical process that becomes a gaining more and more popularity. There is no single
topic of discussion in the scientific community. Digital definition of digital maturity in the scientific field; table 1
transformation, as a rule, means the application and use of presents the definitions of different authors.
modern technologies in the organization’s business

Table 1 The definition of digital maturity by different authors

№ Definition Author and source

1 Digital maturity is about integrating your organization’s WalkMe pioneered the Digital Adoption Platform (DAP)
operations and human capital in digital processes and for organizations to utilize the full potential of their digital
vice versa. assets.

2 Digital maturity-integration of organizational George Westerman, Didier Bonnet, and Andrew McAfee
operations and human capital into digital processes and “The Nine Elements of Digital Transformation” MIT
Vice versa-digital processes into organizational Sloan Management Review January 07, 2014
operations and human capital.

3 Digital maturity – how organizations systematically G.C. Kane, “Digital Maturity, Not Digital
prepare to adapt consistently to ongoing digital change. Transformation,” MIT Sloan Management Review, April
Digital maturity draws on a psychological definition of 4, 2017, https://sloanreview.mit.edu. The general
“maturity” that is based upon a learned ability to background of this concept of maturity is based on L.
respond to the environment in an appropriate manner Hyatt, B. Hyatt, & J. Hyatt, “Effective Leadership
Through Emotional Maturity,” Academic Leadership
Journal 5, no. 2 (summer 2007): article 4.

4 The term “digital maturity” is closely related to digital Has your company achieved digital maturity?
transformation. We can say that digital maturity is the by Alberto Dominguez | Dec 25, 2017
final stage of digital transformation, which companies
aspire to achieve, those companies that have achieved
such digital maturity, have now witnessed important
improvements in the operation of the company, and
have also increased customer satisfaction.

Copyright © 2020 The Authors. Published by Atlantis Press SARL.

This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 443
 Advances in Economics, Business and Management Research, volume 138

Therefore, we can conduct the synthesis of digital maturity 3. Detailed diagnostics (not all segments apply to each
definition according to different authors viewpoints. The organization).
synthesized definition of digital maturity is an adequate 4. Difficulty in interpreting the results – there are no
reaction of a company on changes in the digital sphere, characteristics for each level of digital maturity.
implementation of digital achievements into business 2. Digital Maturity Matrix MIT & Capgemini
processes, as well as the development of staff's digital (Westermann, Bonnet, & McAfee, 2014). It has a form of
competences. However, this definition is quite wide- a matrix, on the X-axis – Transformation management
ranging. Due to the novelty of the term, there is no single, intensity, on the Y-axis – Digital intensity. Four types of
generally accepted definition characterizing the digital maturity of the organization are identified,
phenomenon of digital maturity. The purpose of this study according to the results of the assessment: “beginners” – a
is to develop a definition of digital maturity, which low level of digitalization and management is not ready for
contains the basic elements, and to develop a methodology changes, “fashionistas” – business digitalization is at a
for assessing digital maturity. One should understand that high level, but management is not transformed to meet the
digital transformation isn't the same as digital maturity. needs, “conservatives” – management is at a high level of
Digital maturity is the basement of digital transformation. readiness for changes, but the level of digitalization is low,
Companies, aspiring to increase their level of digital “digirati” – a high level of digitalization, management
maturity, go through digital transformation in all aspects of fully meets the needs of the business that arose in the
their activity. process of digital transformation.
Digital maturity is a gradual process of integration and Advantages of the model:
implementation of organization processes, human, and 1. Simplicity of application.
other resources into digital processes and vice versa. In the 2. Speed of diagnosis.
process of reaching the maximum level of digital maturity, 3. Based on expert evaluation and opinion.
the organization must rely on a digitalization strategy with 4. Clear results (characteristics for the obtained results are
KPIs that allow them to evaluate implementation. If the available).
organization does not have a digitalization strategy, this Disadvantages of the model:
entails risks associated with the adoption of ineffective 1. Expert evaluation (cannot apply if there is insufficient
decisions that negatively affect the organization. Another information).
prerequisite for achieving the highest level of digital 2. There is no complete information on the evaluation,
maturity is the availability of the necessary infrastructure only general characteristics and results of the work are
and relevant structures and units. They can provide the presented.
process of digital transformation in the organization. An 3. Digital Maturity Model Universität St. Gallen (Back &
important component of the highest level of digital Berghaus, 2016). It is a model that has nine components,
maturity is the human factor, which includes the each of which is evaluated based on a survey, with a total
willingness of management and staff, as well as the of 64 indicators.
necessary skills and competencies to digitalize the 1. Customer experience.
organization. Thus, maximizing the above aspects is the 2. Product innovation.
process of achieving digital maturity. 3. Strategy.
4. Organization.
5. Digitalization process.
2. METHOD 6. Collaboration.
7. Information technology.
As part of the study, a comparative analysis of digital 8. Culture and expertise.
maturity models, including Russian and foreign ones, was 9. Transformation management.
conducted. The following are brief characteristics, Advantages of the model:
advantages and disadvantages of each of them. 1. Covers all major aspects of the organization.
1. ODM3 – open digital manufacturing maturity model of 2. Ease of use.
the Moscow School of Management Skolkovo. It is a 3. The methodology is publicly available.
maturity diagnostic survey for a digital manufacturing 4. Conducted based on a survey.
company. Survey list contains three segments: design and 5. Suitable for primary, self-diagnosis within the
technological preparation of production, production, organization.
management, and logistics. Each section consists of Disadvantages of the model:
segments that specify and disclose them in detail. 1. The model itself is presented only as a diagram of the
Advantages of the model: organization's block aspects, but it does not provide a
1. Simplicity of application. graphical representation of the level of digital maturity.
2. Developed in and for Russian realities and economic. 2. The result of the survey does not represent a specific
3. It's available in open sources. numerical value that indicates a certain level of digital
4. Detailed diagnostics (for large-scale companies). maturity.
Disadvantages of the model: 3. Not suitable for a full assessment of the digital maturity
1. Diagnosis takes a long time. level.
2. The model does not apply to small-scale companies.

444
 Advances in Economics, Business and Management Research, volume 138

4. TM Forum Digital Maturity Model. The model includes 4. Innovation & lean delivery.
the following components: 5. Big data and AI.
1. Customer. 6. Technology leadership.
2. Strategy. Advantages of the model:
3. Technology. 1. Adaptability to the individual needs of the organization.
4. Operations. 2. Colorful graphical representation of the model.
5. Organizational culture and people. 3. Broad coverage of aspects of the organization.
In total, all 5 segments include 28 sections + 175 special 4. It considers modern digitalization paradigm trends such
criteria that fit the needs of specific, private organizations. as Big data, AI, digital culture, etc.
Advantages of the model: 5. Maximum depth assessment of digital maturity.
1. Using this model, you can conduct a deep, as detailed as Disadvantages of the model:
possible analysis of the level of digitalization and digital 1. There is no access to the full methodology.
maturity of the company. 2. It is oriented to foreign markets, so it is not represented
2. It has a mobile app. on the Russian market.
Disadvantages of the model: 3. Inapplicability in the Russian market (see point 2).
1. The model is not publicly available in full size. 4. The evaluation takes quite a long time due to the many
2. The app is not available in the Russian Google Play, criteria for evaluation.
Appstore. 5. Despite its adaptability to individual requests, it is still
3. TM Forum works on the foreign market and conducts more focused on companies in the digital & IT field, rather
research, therefore, this model cannot be applied in Russia. than production, service, etc.
5. The Open Digital Maturity Model (ODMM). It is an
assessment tool that compares organization's current level
of digital maturity with its own digital transformation 3. RESULTS
goals and the performance of the best organizations in its
segment. According to the analysis of digital maturity models, the
It is a pie chart with a huge number of segments. The main authors' method for assessing the level of digital maturity
ones are: of the organization was developed, based on the main
1. Strategic dynamism.
definitions of digital maturity (Table 2) and three scales
2. Customer centricity.
(Figure 1).
3. Digital culture, talent & skills.

Table 2 Main definitions for digital maturity characteristics

Element Definition

Strategy The presence of a digital transformation strategy for the organization, its integration into the
development strategy of the organization. A list of specific, clear actions needed to achieve a high
level of digital maturity. At the same time, the digital transformation strategy should not "turn
upside down" the existing strategy in the organization, but organically build-in and enrich it,
bringing the necessary changes, technologies, and resources for the development and improvement
of the organization's performance indicators.

Organization The most important component of achieving a high level of digital maturity is the readiness of the
management for changes in the organizational culture, restructuring of business processes, and
improving their management skills

People Successful implementation of the strategy implies the readiness of the staff and their awareness of
upcoming changes. Engagement, motivation, and participation of people in strategic changes
within an organization is the key to success.

Technologies Technologies are the main driver of digital transformation. A high level of digital maturity implies
a high level of digital competence for employees involved in the digital transformation process.

Data Proper usage and management of data is the basis of digitalization, which includes the
harmonization of data creation and generation, as well as other related processes. Increasing data
volumes and their quality require organizations to focus. Properly managed, consistent and reliable
data is not just the cornerstone of all financial processes, but the main prerequisite for
digitalization.

445
 Advances in Economics, Business and Management Research, volume 138

Table 2 shows the main definitions (elements) that will is difficult for them to make changes in business
characterize digital maturity. processes, management may not be aimed at managing a
Therefore, when determining digital maturity, we will rely modern organization, staff may not have the necessary
on the presence or absence of a digital transformation skills to work with modern technologies, the technical
strategy, the readiness of the management apparatus and equipment of the organization may also not allow
personnel for changes, the availability of the necessary digitalization of the business.
technological resources, the readiness of the technological “Catching-ups” – organizations of this type are only going
base, as well as properly organized work with data. to develop a strategy for digital transformation, they are
Based on the selected definitions, figure 1 shows the aware of its need, but do not have it. Management is
classification of organizations by the level of digital visionary, they are aware of the need for change and are
maturity. ready for it, as well as employees. The company either has
the necessary technical equipment or is ready to purchase
it.
Y – Digitalization “Off-track” – have a digitalization strategy, but have
level difficulty implementing it. Management wants to change
the organization to meet the demands of the times. On the
path to successful digitalization are problems associated
with human resources, mathematical and technical supply,
digitization of data, etc.
“Leaders” – have a digitalization strategy and implement
it. Usually, these are modern organizations that have a
business model that has been modernized and adapted to
the age of digitalization. The management has a leadership
type of thinking that leads the organization to success. The
organization has the necessary technical base, employees
have the necessary skills and competencies to work with it.
X – Digitalization
Z – Readiness to The developed method includes a questionnaire consisting
strategy
digitalization of three blocks of questions, each of which contains 10
questions. The score is assigned according to the digital
“Beginners”
“Catching-ups” maturity levels that were previously presented in the
“Off-track” article. The result of the evaluation is to collect empirical
“Leaders” data and test the methodology for researchers, and clear
graphical representation of the current situation in the
organization, as well as recommendations by the available
Figure 1 Company’s classification according to the level results for the business.
of digital maturity At the moment, two organizations were evaluated using
the developed methodology – the manufacture of oil and
Therefore, the figure shows three scales by which gas equipment company and the clothing factory. Each
organizations are classified – the digitalization strategy, assessment provided a level of digital maturity, a graphical
the level of digitalization of the organization, and its representation of the results obtained and
readiness for digitalization. Based on three scales, four recommendations.
levels of digital maturity are presented: “beginners”, The organization that produces oil and gas equipment is
“catching-ups”, “off-track” and “leaders”. engaged in the production of equipment for oil production,
“Beginners” – don't have a digital transformation strategy: tools for rope work and well repair, valves, primary
they either collect and analyze information on its converters, sensors, complex systems, etc. Figure 2 shows
development or do not intend to develop a digitalization the summary result of the organization by the level of
strategy at all. This is a traditional type of organization, it digital maturity.

446
 Advances in Economics, Business and Management Research, volume 138

Figure 2 Summary of the resulting digital maturity level Figure 4 Totals for three scales for an organization that
for an oil and gas equipment manufacturing organization produces oil and gas equipment
The frequency analysis shown in figure 3 is used as an Based on the assessment, the level of digital maturity of
additional tool for determining the level of digital “Catching-ups” was determined for the organization that
maturity. Based on the frequency analysis, we can produces oil and gas equipment and the following
conclude that the company producing oil and gas recommendations were developed:
equipment belongs to the "Off-tracks", but because the - Implementation of VR technologies, digital counterparts
assessment is carried out not only based on the numerical to reduce the cost of errors at the design stage.
values obtained but also taking into account the specific - Development of KPIs for evaluating the implementation
characteristics of each organization, in this case, the of the digitalization strategy.
organization is at the “Catching-ups” level, since they do - Organize the process of knowledge transfer in the
not have a strategy for digitalizing the organization. organization.
- Develop a digitalization strategy to increase the level of
digital maturity of the organization.

Next, we will consider the results obtained when

evaluating the clothing factory. The clothing factory
belongs to the Russian enterprises of the clothing industry
specializing in the production of outerwear for men and
women, school clothes for boys and girls. The head office
and main production facilities located in Novosibirsk.
Figure 5 shows a summary of the assessment of the level
of digital maturity of a clothing factory.

Figure 3 Frequency analysis for an organization that

produces oil and gas equipment

Furthermore, the final values for each scale were

analysed (figure 1) to determine the areas where the
organization is performing well and the growth areas
for which recommendations were developed.
Figure 5 Summary results of the assessment of the level of
Figure 4 shows the totals for the first organization, digital maturity of a clothing factory
followed by general recommendations.

447
 Advances in Economics, Business and Management Research, volume 138

Figure 6 shows a frequency analysis that clearly shows DISCUSSION

that the clothing factory has a high level of digital
maturity. however, since the assessment is based not only The developed methodology requires further testing in
on numerical indications but also on the characteristics of order to verify its universality and applicability to various
each organization, the clothing factory is assigned a digital fields. The purpose of the development of this
maturity level – “Off-track”, since the organization has not methodology was to create a simple, understandable,
developed KPIs that can be used to evaluate the transparent tool for use in various fields since when
implementation of the digitalization strategy. working with a similar Russian methodology and
analyzing foreign ones, obvious shortcomings were
identified, such as: incomplete initial data for analysis, the
complexity of the assessment (large time costs ), the lack
of a universal approach and focus on specific areas and/or
sizes of organizations. Another objective is the ability to
visualize the results of the study.
Further testing of the methodology will make it possible to
establish whether it can be applied in other areas (services,
education, medicine, hotel business, KMPG companies,
etc.). This methodology allows using data mining methods
to plan future actions of the organization to increase
productivity and improve the digitalization process in
order to become a leader in its field.

Figure 6 Frequency analysis for a clothing factory REFERENCES

To develop recommendations and identify the strengths of [1] George Westerman, Didier Bonnet, and Andrew
the organization, an analysis of the final values was McAfee “The Nine Elements of Digital
conducted (figure 7). Transformation” MIT Sloan Management Review
January 07, 2014

[2] G.C. Kane, “Digital Maturity, Not Digital

Transformation,” MIT Sloan Management Review,
April 4, 2017, https://sloanreview.mit.edu. The general
background of this concept of maturity is based on L.
Hyatt, B. Hyatt, & J. Hyatt, “Effective Leadership
Through Emotional Maturity,” Academic Leadership
Journal 5, no. 2 (summer 2007): article 4.

[3] A. Dominguez Has your company achieved digital

maturity? [Electronic resource] // December 25, 2017. -
URL: https://ehorus.com/digital-maturity/

[4] D. Field, S. Patel, H. Leon The Dividends of Digital

Figure 7 Totals for three scales for a clothing factory Marketing Maturity [Electronic resource] // Boston
Consulting Group, February 18, 2019. - URL:
Based on the assessment of the level of digital maturity, it https://www.bcg.com/ru-
was concluded that the clothing factory belongs to the ru/publications/2019/dividends-digital-marketing-
group of “Off-track”. Implementation of the developed maturity.aspx
recommendations will strengthen the factory's position and
raise it to the next level of digital maturity. The [5] Digital economic: textbook / V.D. Markova. - M.:
recommendations are the following: INFRA-M, 2018 .- 186 p. - (Higher Education:
- Develop the KPIs for evaluating the implementation of
the digitalization strategy.
Undergraduate) (in Russian)
- Appoint internal experts responsible for the [6] Order of the Government of the Russian Federation
implementation of the digitalization strategy.
on approval of the program “Digital Economy of the
Russian Federation” [Electronic resource]: July 16,

448
 Advances in Economics, Business and Management Research, volume 138

2017 N 1632-r // Garant.ru: legal information portal - maturity and managerial competences: A model and its
Moscow, 1990-2018. (in Russian) preliminary assessment, in: Lecture Notes in
Information Systems and Organisation, vol. 33, 2020,
[7] Bilenko P., Lysenko S., Lysenko L., Zavaleev I., p. 261-272, 15th Conference of the Italian chapter of
Fokin S. Digital production: methods, ecosystems, Association for Information Systems, AIS 2018; Pavia;
technologies [Electronic resource]: 09/20/2017 URL: Italy. DOI: 10.1007/978-3-030-23665-6_19
http://assets.fea.ru/uploads
/fea/news/2018/04_april/12/cifrovoe-proizvodstvo- [17] Schumacher, A., Erol, S., & Sihn, W., A maturity
032018.pdf (in Russian) model for assessing industry 4.0 readiness and maturity
of manufacturing enterprises, in: Procedia CIRP, vol.
[8] ODM3 - open digital manufacturing maturity model 52, 2016, p. 161–166. DOI:
of the Moscow School of Management Skolkovo https://doi.org/10.1016/j.procir.2016.07.040
[Electronic resource] – Mode of access: http://odm3.io
– Title from the screen [18] Kidschun, F., Hecklau, F., Orth, R., Wackernagel,
J.P., Singer, K., Development of an organizational
[9] Digital Maturity Matrix MIT & Capgemini structure model as a basis for the assessment of the
(Westermann, Bonnet, & McAfee, 2014) [Electronic digital transformation of organizations, in: Proceedings
resource] – Mode of access: of the 15th European Conference on Management,
https://www.capgemini.com/wp- Leadership and Governance, ECMLG 2019-2020, p.
content/uploads/2017/07/The_Digital_Advantage__Ho 217-226, 15th European Conference on Management,
w_Digital_Leaders_Outperform_their_Peers_in_Every Leadership and Governance, ECMLG 2019; Porto;
_Industry.pdf – Title from the screen Portugal. DOI: 10.34190/MLG.19.107
[10] Digital Maturity Model Universität St. Gallen [19] Zangiacomi, A., Pessot, E., Fornasiero, R., Bertetti,
(Back & Berghaus, 2016) [Electronic resource] – Mode M., Sacco, M., Moving towards digitalization: a
of access: https://aback.iwi.unisg.ch/kompetenz/digital- multiple case study in manufacturing, in: Production
maturity-transformation/ – Title from the screen Planning and Control, vol. 31, Issue 2-3, 17 February
[11] TM Forum Digital Maturity Model [Electronic 2020, p. 143-157. DOI:
resource] – Mode of access: 10.1080/09537287.2019.1631468
https://www.tmforum.org/digital-maturity-model- [20] Schallmo, D., Williams, C.A., Lohse, J., Digital
metrics/ strategy - Integrated approach and generic options, in:
[12] The Open Digital Maturity Model (ODMM) International Journal of Innovation Management, vol.
[Electronic resource] – Mode of access: 23, Issue 8, 1 December 2019, DOI:
https://openroadscommunity.com/initiative/open- 10.1142/S136391961940005X
digital-maturity-model [21] Rader, D., Digital maturity – the new competitive
[13] The Digitalization Matrix Superior Consulting goal, in: Strategy and Leadership, vol. 47, Issue 5, 16
Services Luettgen [Electronic resource] – Mode of September 2019, Pages 28-35. DOI: 10.1108/SL-06-
access: https://www.scs-luettgen.com/en/digitalization- 2019-0084
matrix/ [22] Gustafsson, E., Jonsson, P., Holmström, J., Digital
[14] CFO 4.0 – Five base elements of digital maturity product fitting in retail supply chains: maturity levels
[Electronic resource] – Mode of access: and potential outcomes, in: Supply Chain Management,
https://www.bearingpoint.com/en-fi/blog/five-base- vol. 24, Issue 5, 19 August 2019, Pages 574-589. DOI:
elements-of-digital-maturity/ 10.1108/SCM-07-2018-0247

[15] McKinsey & Company - A roadmap for a digital [23] Vial, G., Understanding digital transformation: A
transformation [Electronic resource] – Mode of access: review and a research agenda, in: Journal of Strategic
https://www.mckinsey.com/industries/financial- Information Systems, vol. 28, Issue 2, June 2019, Pages
services/our-insights/a-roadmap-for-a-digital- 118-144. DOI: 10.1016/j.jsis.2019.01.003
transformation

[16] Ravarini, A.aEmail Author, Locoro, A.aEmail

Author, Martinez, M., Digital transformation projects

449