Tracking of value and realization of digital transformation: A maturity assessment model

Abstract: Since today’s fast-paced landscapes evolves into digital environments, businesses are faced by the need of performing digital transformation, as it will support them in staying competitive. However, when executing digital transformation, it becomes important to prioritize the right initiatives to ensure efficient budget allocation, as well as to track progress and value realization to assess real impact and to secure efficient realization. Therefore, tracking value and realization of digital transformation is an essential process in the progress of digitalizing business processes and staying competitive, and thus, should be executed in a mature manner. Consequently, this study’s purpose includes the development of a framework, which can be used to evaluate the maturity of organizations when tracking the value and the realization of digital transformation. To fulfill this, a case study was conducted, whose results were based on qualitative data collected through observation, interviews, and internal documentation. It was found that three aspects are relevant to be assessed when evaluating processes of tracking digital transformation value and realization, namely, formalization, integration, and utilization of the tracking system. For these three aspects, different ambition levels are defined and seen as targets to be sought after by organizations. Furthermore, it is found to be relevant to track progress of digital transformation in terms of development, deployment, and adoption, as well as to assess associated risks, impact on the company’s financials, and objectives and key results. To develop a maturity framework, additionally, five distinct maturity levels were identified, based on challenges and a future ambition for a tracking system. These levels range from “not started” to an “ambition level”. As a result, the maturity assessment framework developed in this study is deemed relevant to be used in a descriptive manner, illustrating key aspects to be considered when tracking the value and realization of digital transformation, as well as when analyzing organizations’ performance in that respect. The study’s outcomes are thus expected to support transparency in organizations when managing digital transformation.