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Organizational Capabilities for Digital Transformation

The Organizational Capabilities Framework describes 4x4 capabilities that companies and leaders need in their digital maturation.

Increasing digital maturity requires new capabilities in four main areas; Strategy, Technology, Organization and Leadership. Within each area, there are four capabilities that gradually become relevant as the company matures.

Built on research and experience

The 4x4 capabilities have been developed based on Pernille Kræmmergaard's research and practical experience over more than two decades.

The Organizational Capabilities Framework is an attempt to convey the capabilities in such a concrete way that you can work with them - without going into the smallest details.

Most importantly, you will realize how necessary it is to master these capabilities. What do you and your business need to be able to do to create a better solution for customers and to compete in an ever-changing and competitive environment? Perhaps you want a better understanding and overview of where your business is right now?

What capabilities do we need?

What does your company need to master in order to execute the digital maturation you want? What does this require in terms of your strategies? What does it require of you as a company? And of the leadership? These are the questions the Organizational Capabilities framework answers.

Digital maturity requires capabilities in the four areas: Strategy, Technology, Organization and Leadership, as shown in the figure. As you mature, new capabilities are added, while others become less crucial. But you're always building on top of what's already there, so what you've learned doesn't stop being relevant.

Map your Organization

You can use the Organizational Capabilities Tool to explore the 4x4 capabilities you need to succeed with digital transformation in generations four, five and six.

If you're curious if our tools are right for you and your organization, you can order a free access and try the tool.

Strategy

Involves the impact of digital and technological developments on the company’s future viability, its relationships with customers and partners, and its ability to adapt.

Digital Visionary

Digital Visionary means that the organization can assess the unpredictable and dynamic digital and competitive landscape - and rethink the business model and organization to be relevant in 10 years​.

End-customer focus

End-customer Focus means that the organization is aware of the fundamental need each individual end-customer wants to have fulfilled and is able to meet that need in a way that aligns with the end-customer’s changing demands and expectations.

Ecosystem mindset

Ecosystem Mindset means that the organization values and is able to engage in mutually beneficial partnerships where value is created and shared, and views this as essential for achieving strategic success.

Ecological Fitness means that the organization is able to adapt its strategies, technologies, and organizational and leadership practices to current and future demands and expectations from the surrounding environment.​

Technology

Involves understanding the significance of technologies, IT platforms, data, and security for the company’s current and future opportunities.

Technological foresight

Technological Foresight means that the organization continuously and systematically monitors, evaluates, and applies technological developments and digital trends to solve problems for the organization, its customers, end-customers, the business, etc.

IT Orchestration

IT Orchestration means being both robust internally and flexible externally, with a clear understanding of how the IT architecture is and can be designed, having appropriate decision-making structures, and role of the IT department.

Data driven

Data-driven means that the organization is able to manage, govern, capture, utilize, and present various types of data as an organizational and strategic resource – and establishes the appropriate data governance to support this.

Cyber Secure means that the organization views cybersecurity as a critical business matter and a competitive factor, and has effective security measures, technologies, and policies in place to protect against cyberattacks.

Organization

Involves changes within the organization, how work is structured, and the framework and conditions for employees.

Ambidextrous

Ambidextrous means that the organization is able to both exploit and improve the existing while simultaneously exploring new opportunities and driving change — and that the right structures and leadership practices are in place to support both.

Agile

Agile means that the organization can act with flexibility and adapt quickly, while decision-making authority is delegated to cross-functional teams focused on creating value — and there is broad acceptance of operating in beta mode.

Work place environment

Workplace Environment means being conscious of and attentive to the technological, physical, cultural, and structural frameworks the organization provides for employees – and whether these are up-to-date and attractive.

Competency aware

Competency-aware means continuously developing the mindset and competences of leaders and employees, and recruiting the right people to match the organization’s current and future digital maturity, visions, and business models.

Leadership

Involves what leaders, in addition to general management competencies, must master in order to lead in increasingly digital environments.

Tech and data leadership

Tech and Data Leadership means that leadership understands the potential of technologies, assesses their strategic relevance, and ensures the development of need competencies to comply with data, IT, and cybersecurity policies.

Transformational Leadership

Transformational Leadership means making the purpose of digital transformation meaningful to employees and fostering a strong desire to take part in a journey full of unknowns — even for the leaders themselves.

Multiplicity leadership

Multiplicity Leadership means being able to navigate multiple realities and bottom lines, where standard solutions are insufficient, and where everyone expects individual consideration and a strong commitment to sustainability efforts.

Maturity Leadership means being able to assess the organization’s current and desired future level of digital maturity, identify the gap between the two, and implement metrics to track and adjust progress.

Need more insights and hands-on advice? Read the book

What you have just read is a brief introduction to the capabilities required for Digital Transformation. These have been developed based on Pernille Kræmmergaard's international academic research over a period of more than 25 years, as well as practical experience from hundreds of courses and workshops with private companies and public organizations.

The 13 capabilities are described in depth in the book "Digital transformation - 10 capabilities your organization must master - and 3 that you need" from 2019.

The capabilities Ecological Fitness, Cybersecurity and Maturity Leadership are presented in "Mind the Gap. Digital Maturation - Your Leadership Responsibility" from 2024.

The books are intended as a user guide for leaders at all levels.
Buy Digital Transformation - 10 skills your organization must master - and 3 that you need
Buy Mind the Gap

We also recommend our Organizational Capabilities Tool

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