What is digital maturity and why is it important?

Adapting to and responding to disruptive technological trends is what digital maturity means to an organization.

What Digital Maturity is not

Technology or cutting-edge features do not define digital maturity. And neither does it depend on your technology investment. So even if you invested thousands of dollars in new systems, if your employees don’t use them because they find it too complicated, then you’re not on the path to digital maturity.

What is a digital maturity model?

Digital maturity models serve as a valuable tool to guide a clear path during the digital transformation process and provide a framework for:

  1. Know where you stand in terms of digital maturity at a given time
  2. Create a roadmap for your digital transformation

The 4 stages of digital maturity DANAConnect has discovered

In helping over 200 financial institutions and insurers achieve digital maturity, DANAConnect has learned that to do digital, go digital, to be digital, there are a number of steps to follow.

Digital Maturity Stage 0 : Companies that are still on paper

The first steps towards digital transformation for a zero stage company must include:

  • Collecting their customers’ email and mobile numbers to achieve contactability
  • Engage and educate their staff about the benefits of becoming digital in the long term
  • Study technology enablers in the market and search for tools that adapt to their initial needs but lets them scale in the future
  • Redefine process to adapt to digital channels

Stages of digital maturity -> Stage 1:
Companies with communications led by IT

The next steps towards digital maturity for a Stage 1 company must include:

  • Start using third party bulk email services to assess and increase their contactability
  • Start using other channels than email, like SMS, WhatsApp and Messenger
  • Keeping their contact data clean and updated, including secondary channels
  • Collecting customer’s data through reliable and structured digital sources and not by phone or paper
  • Using validation email services to keep out of black lists
  • Review their process to get out of the paper paradigm

Stages of digital maturity -> Stage 2:
Companies with communications led by each department

The next move towards digital transformation for a stage 2 company must include:

  • Start mapping your company’s current process flows to analyze them and create a detailed process map.
  • Create a campaign to raise awareness throughout the company, focusing on how to break apart organizational silos and promote cross-functional management.
  • Select a unified cross channel customer communication platform to be able to centralize the data.
  • Create new end to end process workflows.
  • Create transversal agile teams and process owners.

Stages of digital maturity -> Stage 3:
Companies with governance over customer communications

Moving forward the stages of digital maturity to have a digital workforce must include:

  • Incorporating customer feedback
  • Fully reengineering processes end-to-end, if necessary to reduce total steps to adapt to a same day delivery customer culture.

Stages of digital maturity -> Stage 4:
Companies with a digital workforce

When done right, having a digital workforce can bring significant benefits

McKinsey & Company provides numerous examples spanning a range of industries:

  • A bank that digitalizes the mortgage application process has up to a 70 percent cost reduction and a 60 percent reduction in preliminary approval time, which reduces the time it takes to obtain a mortgage to just one minute.
  • An insurance company that automatically settles and e-closes a large portion of their simple claims using, thereby offering better customer service, reducing operating costs, and lowering premiums.

Transformation strategy maturity

Understanding your digital maturity is essential to a strategic approach to digital transformation. As the barriers to digital entry shrink, new technology companies are offering a variety of IT services and capabilities to facilitate digital transformation. Similarly, organizations increasingly need to improve the quality and reliability of their digital information and technologies.

How Does Your Company Achieve Digital Maturity?

Achieving greater digital maturity involves five steps:

  1. Analyze your digital maturity a this moment
  2. Get leadership’s buy-in
  3. Organizational restructuring is needed
  4. Create a digital transformation strategy
  5. Start with a small process

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Automation Insider @ Danaconnect

Automation Insider @ Danaconnect

Cutting-edge cross-channel automation platform designed for the financial industry to ensure security, governance, compliance, and auditing.