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Accelerating Digital Transformation: NASSCOM-Avasant Digital Enterprise Maturity model
Accelerating Digital Transformation: NASSCOM-Avasant Digital Enterprise Maturity model

August 31, 2022

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In NASSCOM-Avasant's recently published report, “DIGITAL ENTERPRISE MATURITY 3.0: Boosting Business Resilience through Technology”, we have endeavored to construct a framework that is comprehensive, yet adaptable and scalable, at assessing an enterprise’s overall digital maturity and benchmarking its performance within the sector, the region, and globally.  The 2022 Digital Enterprise Maturity Index is based upon 3 dimensions of digital maturity – Digital Strategy and Investments, Technology Adoption, and Digital Talent – and 14 primary parameters that form the multivariate assessment model defining key attributes of highly mature digital enterprises to enable calibration of enterprise, sector, regional, and overall global digital maturity, year-on-year. The five maturity phases – Beginners, Followers, Strivers, Accelerators, and Transformers – are determined on a scale of 1 to 5. Transformers are the most digitally mature organizations while Beginners are at an elementary stage of maturity.  

To begin with, the figure below details the Digital Enterprise Maturity Framework constructed by NASSCOM and Avasant.

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Between FY2019 and FY2022, accelerated by Covid-induced disruptions and the criticality of digital transformation, overall Digital Enterprise Maturity witnessed a significant upsurge. Specifically, this transition has been seen in the mid-maturity ‘Followers’ and ‘Strivers’ stages, decreasing from 30-35% each in FY2019 to 15%-20% and 25%-30% respectively in FY2022, while Transformers have grown from 5%-10% in FY2019 to 10%-15% in FY2022. Thus, ‘Transformers’ - the most mature digital enterprises have, in practice, grown 2X between FY2019 and FY2022. 

Elucidated below are key broad characteristics of enterprises segmented in different maturity categories:

Beginner:

  • Operates with familiar legacy perspective
  • Believes that its business-as-usual remains relevant to digital
  • Heavily invested in legacy IT with minimum efforts to modernize/ digitally transform

Follower:

  • Acknowledges the need for going digital
  • Drives digital literacy
  • Seeks to improve certain specific business processes through digital transformation, possibly starting with functions involving back-end support and routine, mundane tasks such as Administration, certain sub-processes within Finance, etc.

Striver:

  • Analyzes trends and have begun experimenting with digitalization of various business processes
  • Pursues executive support for new resources and technology
  • Has begun testing waters with emerging technologies such as Web 3.0, Quantum Computing, Connectivity technologies (5G/6G, WiFi6, etc.), Metaverse, etc. but the core focus is on mainstream technologies such as Cloud/Edge Computing, Big Data Analytics (BDA), Artificial Intelligence/Machine Learning (AI/ML), Internet of Things (IoT), Cybersecurity, etc.

Accelerator:

  • Aims for enterprise-wide digital transformation
  • Contemplating investments in emerging technologies
  • Investing significantly in digital talent
  • Has reached substantial maturity levels in terms of mainstream technologies

Transformer:

  • Drives not only enterprise but industry-level digital transformation
  • Ramping up investments in emerging technologies, R&D and innovation, and inorganic growth
  • Has attained significantly high levels of maturity in terms of mainstream technologies

In the upcoming blogs on Digital Enterprise Maturity, we will discuss each of the three dimensions and fourteen parameters in detail and how these have been baked into the Digital Enterprise Maturity Index. We will also examine the state of tech adoption across the globe, detailed characteristics of enterprises classified as ‘Transformers’, sectoral nuances of digital enterprise maturity, enterprise digital spending outlook in FY2023 and recommendations for CXOs of organizations as well as other stakeholders​ such as service providers, industry associations and academia, as well as governments to fast-track the digital adoption journey.

As mentioned in my previous blog the concept of maturity is dynamic and ever evolving and not based on a rigid framework. Keeping that in mind, we will attempt to reexamine, recategorize and recalibrate the changing trends year-on-year via the Digital Enterprise Maturity Index. For more information on Digital Transformation and Digital Enterprise Maturity, please refer to the report downloadable at the following links:

NASSCOM Website: https://nasscom.in/knowledge-center/publications/digital-enterprise-maturity-30-boosting-business-resilience-through

NASSCOM Community: https://community.nasscom.in/communities/digital-transformation/digital-enterprise-maturity-30-boosting-business-resilience

Earlier versions of the report can be downloaded from the following links:

A NEW ORDER OUT OF CHAOS-BUILDING A FUTURE READY ORGANISATION-https://community.nasscom.in/communities/digital-transformation/new-order-out-chaos-building-future-ready-organisation

REIMAGINING INDIAN ENTERPRISES' TECH LANDSCAPE IN A DIGITAL-FIRST WORLD – A NEW ORDER OUT OF CHAOS- https://community.nasscom.in/communities/digital-transformation/reimagining-indian-enterprises-tech-landscape-digital-first

DEFINING THE DIGITAL ENTERPRISE - MAR 2020 -https://community.nasscom.in/communities/digital-transformation/defining-the-digital-enterprise-mar-2020.html


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Prerna Buckshee
Manager - Research

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