Managing the Company's Digital Capability

Abstract

The framework for assessing the company's digital capability includes six key areasthat can be individually evaluated to consider the overall maturity of a company's digitalcapability. According to this framework key areas are innovation capability,transformation capability and IT excellence as digital transformation enablers andcustomer centricity, effective knowledge worker and operational excellence as digitaltransformation goals. The focus of this research is the area of operational excellence.The purpose of the paper is to assess how the manufacturing company manages thedigital transformation of the operational excellence. In the paper, the digital capabilitymaturity model (DCMM) and its corresponding business transformation managementmethodology (BTM2) are used for this assessment. The BTM2 includes ninemanagement disciplines and each of them is individually evaluated for the case of theoperational excellence. These are the following disciplines: strategy management,value management, risk management, business process management, IT management,change management, training management, project management and metamanagement. According to the obtained assessment results the maturity of managementdisciplines for the case of operational excellence within the examined company ismostly reactive (maturity level 2). In order to improve the digital transformation of thecompany's operational excellence, it is necessary to define digital use cases based onthe new technologies and map them to the existing maturity model of operationalexcellence of the company. It is necessary to consider the requirements of stakeholdersregarding the benefits and risks of new digital technologies to improve the operationalexcellence of the company. Accordingly, the company should to define a new strategicplan and align it with the new IT strategy. For this purpose, COBIT 5 framework isused in the paper. The contribution of this research is in the proposed and describedthree-step approach to managing the operational excellence of companies andimproving the level of digital capabilities of companies.