Digital Capability Framework Overview 3

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DIGITAL CAPABILITY FRAMEWORK - OVERVIEWMeasure and Achieve Digital Potential in Business

Developed by Kieran O’Hea ©Digitigm July-November 2010CONFIDENTIAL

For the purpose of this presentation “Digital” means digital processes, services and devices including but not limited to broadband, internet, digital media, social media, websites, smart phones, digital marketing and digital advertising.

Extensive experience working directly with digital agencies and with their clients has provided first-hand evidence that a more comprehensive understanding at decision-making level of what digital is and how it can add value to business can help organisations to exploit their digital potential more effectively.

The Digital Capability Framework is a holistic, competency-based model that facilitates this understanding on an enterprise-wide basis. It is change management underpinned by digital best practice and can be delivered to all types of organisation, especially traditional businesses, SME’s and public agencies.

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DIGITAL CAPABILITY FRAMEWORK - OVERVIEWStatistics from the IEDR and Econsultancy.com


66% of Irish businesses are online, but only 21% are e-commerce enabled

E-commerce enablement has increased by only 3% since 2000

36% of businesses have no online strategy

12% have IT in charge of the online strategy, 44% have marketing

53% cite cultural issues for low deployment of digital

56% have problems hiring staff with digital skills

45% have no process for harnessing digital knowledge

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DIGITAL CAPABILITY FRAMEWORK - OVERVIEWInfluencing the Digital Landscape


Enterprise Opportunity

More competitive businesses

New jobs and skills

Potential boost for traditional

businesses.

Greater market demand for digital

services.

National Opportunity

Higher national levels of

digital capability will make

Ireland easier to market as

an attractive and vibrant

location for FDI in the digital

sector

International Opportunity

Increasing digital capability

will equip Irish businesses to

participate in European

initiatives and provide

improved access into

international markets.

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DIGITAL CAPABILITY FRAMEWORK OVERVIEW - 1

The Digital Capability Framework is intended to help Internet-enabled organisations in all sectors to measure and achieve their digital potential.

Due to reasons including lack of awareness, corporate culture, generation gap at management level or simply getting the wrong advice, the enterprise-wide deployment of digital technology and processes is often lower than it could be.

Steps that can be taken to improve this include a digital audit of the business, decision assistance programmes, digital management programmes and, as elaborated here, a capability framework based on digital competency levels.

Realising an organisation’s digital capability can result in more effective business processes, career development opportunities, training requirements, job creation and increased competitiveness.


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The Internet has become a utility like phones and electricity and has become indispensable in business.

Converting traditional processes to digital or in some cases replacing them will add value across the organisation.

In order for this to happen, the value needs to be tangible and “Going Digital” needs to become part of the culture of the organisation.

Until now, digital has mainly been associated with marketing and communications but in fact it has consequences for all departments.

The IT Department needs help deciding how to effectively deploy new technology options like cloud computing.

The Procurement Department needs a better understanding of the digital landscape in order to issue more informed specifications to suppliers.


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The Marketing Department needs help deciding which communications channels are best to exploit – web, B2B and B2C social media, mobile etc.

The Sales Department needs help deciding what products and services should be delivered online using e-commerce.

The Customer Service Department needs help managing customer generated content such as social media and online user forums and integrating these with CRM systems.

The HR Department needs help moving recruitment onto the web and onto social media sites liked LinkedIn. It also needs help creating guidelines for appropriate use of social media by employees.

The Research Department needs help leveraging web analytics software as the web and social media make customer profiling increasingly more powerful and accurate.


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The E-marketing Department needs help bringing the content to the user, not the user to the content, and websites and search engine optimisation will no longer be enough.

The Finance Department needs help understanding the potential for cost savings as traditional business processes such as sales, customers support and recruitment move online.

The Senior Management Team needs help understanding how transforming the business to Enterprise 2.0 can make it more cost effective and more competitive.

The Board of Directors needs help understanding that investments with an online component can yield greater and faster ROI.

The Digital Capability Framework will apply a scale of competency levels in order to improve digital management practices across the enterprise, wherever current knowledge or practices require improvement.


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DIGITAL CAPABILITY FRAMEWORK OVERVIEW - 5 Indicative Competency Levels

5. Optimal Digital is at the heart of the operational strategy contributing

to all business processes and objectives, “go digital” culture is

strong

4. Advanced Processes across the enterprise have been converted to

digital providing tangible benefits and efficiencies, advocacy

increasing

3. Intermediate Digital is regarded as a business development tool with

specific targets and reporting is in place, champions emerging

2. Basic Limited resources are allocated to supporting a basic

customer-facing digital presence, basic expertise in place

1. Negligible No awareness of digital capability, no resources allocated, no

digital strategy, plan or metrics, no understanding of best

practice


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5. Optimal

4. Advanced

3. Intermediate

2. Basic

1. Negligible

Finance Procurement HR IT Sales Marketing Customer Service


Target level

Current level

Specialist agencies and SME’s can help organisations increase their digital capability in each area

Documents

Digital Capability Framework Overview 3