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Organizational Capabilities for Digital Transformation

A Framework from DI2X - Built on decades of scientific research.

Digital transformation places new demands on what a company or organization should be capable of, and not least on how it thinks about itself and its relationship with employees, customers, competitors, suppliers, partners and so on.

What is happening and what is needed?

The ten organizational and three personal capabilities described here will make the transformation to a higher level of digital maturity easier. They'll allow you to gain a greater understanding of what is happening and what is needed.

Built on research and experience

The total of 10+3 capabilities have been developed on the basis of Pernille Kræmmergaard's research and practical experience over more than two decades, as well as on the research of others.

This framework Organizational Capabilities is an attempt to make them so concrete that you can work with them - without being so narrow that it becomes purely an exercise in details.

Most importantly, you will become aware of why it is necessary to have these capabilities. What do you and your business need to be able to do to create better solutions for customers, and to surpass the competition in an ever-changing competitive landscape? Maybe you would like to understand and map where your business is right now?

What capabilities do we need?

What do you need to master as an organization to transform your organization? What does it require of your strategies? What does is require of your technological platforms and your data? What does it require of you organization? And of the leadership? These are the questions that the framework "Organizational Capabilities for Digital Transformation" seek to answer.

The capabilities are divided into the four areas: Strategy, Technology, Organization, and Leadership. They are described in sequence, but that does not indicate that any one of them is more important than another one. One cannot pick out some capabilities and ignore others.

Each of the capabilities is an aspect of an overall mindset that will require time and resources to develop in the business or organization.

The first ten capabilities must be widely available to the company or organization, while the last three are personal leadership capabilities. However, the leader cannot settle for the last three, but must accommodate them all.

Strategy

Addresses the impact of digital and technological developments on the future livelihood of the company or organization, its relations with customers and partners.

Digital Visonary - a capability for Digital Transformation

Digital Visonary means that the organization can assess the competitive dancing landscape, and rethink the organization so that it is also relevant in 10 years and reconfigure accordingly.

End-customer focus is a capability for digital transformation

End-customer Focus means that the organisation is aware of what basic needs the end customer wants to be met, and then meets the needs in a way that lives up to the changing requirements and expectations.

Ecosystem Mindset - a capability for Digital Transformation - DI2X

Ecosystem Mindset means that the organization has values, and is able to enter into, mutually rewarding partnerships — where value is created and shared — and sees this as essential to ensure strategic success.

Strategy for Digital Transformation - DI2X

Technology

Is about understanding the impact of business technologies, IT platforms, and data management on the organization's current and future opportunities.

Technological Foresight

Technological Foresight means constantly and systematically monitoring, evaluating, and applying the technological development and the digital signals for the benefit of the end customers, the business, and the organization.

IT Orchestration

IT Orchestration means being both solid on the inside and flexible on the outside. It’s an awareness of how the IT architecture is and must be designed, about IT decision structures, and the role of the IT department.

Data driven

Data-driven means that the organisation can manage, control, use, and present many types of data as an organisational and strategic resource — and establish the right data governance for this.

Technology for Digital Transformation - DI2X

Organization

Looks at how work is organized, the relationship with and the framework for employees, so that they are always in harmony with the company's digital vision and ambitions.

Ambidextrous for digital maturity and transformation

Ambidextrous means that the organization can, at the same time, both exploit and improve the existing and explore new and create change. It also means the right structures and management practices have been established for both.

Agile is a capability for Digital Transformation

Agile means that the organization can act smoothly and adapt, at the same time as decision-making competence is given to teams close to the customer. There is a widespread acceptance of being in beta.

Competency aware

Competency-aware means continuously recruiting and developing the competencies of managers and employees to suit the organization's current and future tasks, strategies, and business models.

Workplace environment

Workplace Environment means being aware of and attentive to the technological, physical, cultural, and structural frames that the organization offers employees and whether these are up-to-date and attractive.

Leadership

Deals with the competencies of managers. In addition to general management competencies, they must master in an increasingly digital and technological environment with the corresponding multiplicity of realities and uncertainties.

Multiplicity Leadership for Digital Tranformation - DI2X

Multiplicity Leadership means being able to manoeuvre in many realities, with many bottom lines, where standard solutions do not work, and where everyone expects individual considerations and sustainable practice.

Tech and Data Leadership - DI2X

Tech and Data Leadership means respecting IT security policies. Also, understanding what the potential is in the technologies, how they change the work done and the need for competencies. It means leading implementation and realization of benefits.

Transformational Leadership

Transformational Leadership means being able to execute visions. Make the purpose of digital transformation meaningful for the employees and create a burning desire to take part in a journey with many unknowns.

Leadership for Digital Transformation - DI2X

Do you need more insights and hands-on advice? Read the book 

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

The capabilities are described more in depth in the book "Digital Transformation - 10 capabilities your organization should master and 3 you need".

The book is intended as a user manual for managers at all levels.
Buy the book directly from the publisher

 

We also recommend our Organizational Capabilities Tool

Digital Transformation, Pernille Kræmmergaard

Introduction to Organizational Capabilities

This short paper introduces the organizational capabilities for digital transformation.

Very relevant before answering the Organizational Capabilities test.