Digital Transformation And Digital Capability! What Is The Relation Between Them?

What is the relationship between Digital Transformation and Digital Capability? So often, we loosely use these terms.

Let us first start with the definition:

What is Digital Transformation?

Digital Transformation is the initiative to make a fundamental change in the business through Digital Capabilities.

So, it is the business endeavour for a fundamental change through Digital Capabilities. For example, consider a retail organisation transform its customer experience. They develop a mobile app to order, track, return their orders.

Let us now jump to Digital Capability!

What is Digital Capability?

Digital Capability measures the organisation’s sophistication to execute a given business process digitally.

In the given domain, a higher level of sophistication implies higher Digital Capability.

Let us revisit the above example of the retail organisation. The organisation invests further in the Mobile App and develop additional features. As a result, its Customer Service Digital Capability improves further. For example, the Mobile App allows sending custom marketing, promotional material. The promotional material is based on customers previous digital interactions with the store.

What is the relationship between Digital Transformation and Digital Capability?

Digital Transformation is a business endeavour to add transformative value through new Digital Capabilities development or improving existing ones.

For example, consider a Digital Transformation initiative to transform the customer experience.

Within the scope of this initiative will deliver the following Digital Capabilities:

Digitalise Customer onboarding
Customer Analytics

Further, the initiative will improve the following existing Digital Capabilities:

Customer self-service
Custom promotions and marketing

To conclude, Digital Transformation implements new Digital Capabilities and improves existing ones.

That is a straightforward way to view the Digital Transformation initiative. As a sponsor, you must know which Digital Capabilities are in scope and their relative importance. Understand this simplified version, and take control of your Digital Transformation journey.

Good luck!

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Giving advice from afar is easy – it often just involves suggesting a few paths forward. But to truly add value, we must stand alongside those we are advising. We need to immerse ourselves in their environment, understand their daily opportunities and constraints, and...

Forcing others to take action requires my effort, time, and mental energy. Therefore, I must have strong reasons to do so, and it must be a temporary endeavour—just enough to help them cross a minimum threshold and see the possibilities for themselves. For instance, I...

We can become superheroes by embracing what they stand for: They fight for a worthy cause and stand on the side of what's right. They carry themselves with humility, blending in like an ordinary person. They remain focused, letting nothing distract them from their...

We may complain about the weather, politics, our rights, or any number of other things. We might even spend time and energy convincing others how justified we are in our grievances. But perhaps what we truly need is a journey to less fortunate parts of the world. The...

Nature maintains its balance. Day is balanced by night, positive charge by negative, acid by base. The same principle applies to energy, mass, magnetism, and countless other forces. For us, this means that when we exert excessive power, greed, or passion, we may...

Change fatigue and project fatigue are real. Just as real, however, is the endurance required for successful change and project execution. We can choose to keep starting and stopping our transformation journey, giving our staff and project teams time to rest after...

Parents who truly care don’t ask their kids what they need for the next year—they anticipate and provide. Similarly, companies like Apple and Google don’t rely on surveys to determine what we need from them; they lead with innovation and foresight. Insurance companies...

Local Governments offer a wide range of services to their citizens, facilitated through various communication channels. These include interactions between citizens and different council teams. However, providing a unified, seamless experience remains a challenge for...

Have you ever watched monkeys grooming each other? It's such a natural act—they spot parasites on each other's bodies and clean them away. These parasites are clearly visible to others, yet the monkeys can’t see them on their own. We’re not so different. We easily...

I might struggle to fit everything into one bag, overlooking the option of carrying a second. I might work relentlessly to achieve a comfortable life, without considering the simplicity of being comfortable with less. I might invest too much energy convincing others,...

When we adopt the mindset of seekers, we unlock the potential to discover better ways of working, enhancing customer experiences, and improving overall well-being. This mindset is grounded in humility, as it encourages us to recognise that there is always a better...

What value do discussions bring when we’re mentally absent, dominating the conversation unnecessarily, failing to learn, clinging to unchanged opinions, protecting our egos, or refusing to commit to action? Yet, we continue to complain that meetings are a waste of...

When we embark on a journey, it’s never just about arriving at the final destination on time, or using the least amount of resources. Instead, it’s about how well we’ve worked together during the trip—how we’ve supported one another and adapted to unexpected changes....

There are countless books on leadership, thousands of podcasts streaming, and blog posts published every day. Yet, when I sift through all this information, the advice often boils down to the same common-sense principles. And yet, good leaders remain rare. It’s a...

It’s reassuring to see lifts displaying floor numbers as they move, offering a sense of progress. Similarly, when waiting in a queue, knowing our position often brings comfort by setting clear expectations about the wait time. Large displays at train stations showing...

Measuring customer satisfaction and service quality within local governments is a multifaceted challenge due to the sheer diversity of services and communication channels involved. Citizens interact with local governments across a wide range of services, from service...

What is the definition of a successful project? Often, we define success too narrowly, measuring it only against budget, time, and quality. But why not broaden the perspective and take a more holistic approach? The success of a project is about more than just...

There was a time when community engagement meant sitting across from real people, hearing their voices, and understanding their concerns face-to-face. Councils relied on traditional methods like community meetings and public forums, paper-based surveys and...

Change has many facets. On the surface, we may notice one prominent change element, but beneath it, there are often many interconnected layers that demand our attention. Let us consider a few examples:I moved to a new location for work. Beneath this seemingly...

Shallow songs, loud drums, and flashy headlines dominate over deep poetry, classical music, and meaningful essays. Quick snapshots and surface-level engagement have taken the place of rich, nuanced content. Our minds are naturally wired for efficiency, often seeking...

Customer-centric solutions are achievable only when we genuinely put customers at the core of our analysis. This begins with understanding them—their needs, problems, and the scenarios in which they interact with us. For instance, in local government, customers might...

Some people speak up, say things as they are, and confidently tell others what to do. We often perceive them as bold. Then there are those who adapt to their surroundings, prioritise peace over confrontation, let go of trivial matters, and allow others the freedom to...

From letters and faxes to SMS, phone calls, emails, social media interactions, client portals, and in-person meetings, the need for effective communication management has never been greater. With advances in technology, customer expectations are also rising, demanding...

Ratepayers are the cornerstone of a Local Government's existence; without them, the Council's purpose would be questioned. They are the centre of the Local Government universe, yet we often overlook the critical focus on customer experience. Typically, customer...

We often hear about limited budgets and funding constraints when it comes to investing in automation, business improvement, and customer experience enhancements. A common refrain is that only a limited budget has been allocated for initiatives such as ERP selection...

It’s entirely possible that we’re not yet ready to invest in automation or major technology initiatives within our business. Perhaps there’s no immediate need for a large-scale transformation effort. But the path of continuous improvement must never stop. We must keep...

We are often conditioned to measure success solely by results. However, I believe the true measure of success lies in the combination of effort, intent, process, and teamwork. Measuring success purely by outcomes offers only one dimension. A more holistic approach...

Apple products like iPhones, MacBooks, Apple TVs, iPads, and AirPods work seamlessly together. But try connecting Apple devices with Android or Windows platforms, and you’ll experience the frustration of incompatibility. Enterprise software isn’t much different. To...

When budgets are tight, we often ask ourselves: How can we do more with less? But this is a question we should consistently consider in everything we do. How can we achieve more with fewer resources? How can we optimise the investment of our time and money? How can we...

If you think that developing reports for your organisation is expensive, then you need to know how much the following are costing you: Making decisions without factual information Cost of reactive decision-making because you don’t have access to real-time information...

The good old ways have always been working and may continue to work. But that is no reason to avoid change. If those methods take enormous time and resources yet deliver little value, then as leaders, we must take the initiative to transition to better ways of...

Business improvement and technology implementation projects are inherently challenging. When forming project teams, we often rely on Subject Matter Experts (SMEs) from the core business. These employees, while deeply knowledgeable, are usually engaged in their...

If my business outgrows the software we implemented last year, I would view it as a sign of progress and success. Dwelling on the cost of software we’ve outgrown is unproductive. That very software likely played a crucial role in moving us forward and enabling our...

To make a difference, I must take consistent action—regardless of how small, imperfect. My present actions shape the possibilities of the future. They are the foundation of hope. I am committed to the long game. In this journey, every day becomes a lesson—a chance to...

Achieving substantial outcomes within Local Governments often feels like an uphill battle. With limited budgets, resources, and in-house skills, and sometimes a lack of unified commitment from leadership, each department seems driven by its own priorities....

Local governments often struggle with limited budgets, aging IT infrastructure, manual processes, and legacy reporting solutions. Here are a few thoughts for leaders to make a difference in the current environment: Invest as if It Were Your Own MoneyApproach every IT...

Many smaller shires and local governments face challenges when investing in projects due to limited budgets and tight resources, making it difficult to prioritise strategic initiatives. One effective approach is to map all projects based on their benefits and effort...

In essence, process improvement aims to standardise procedures to reduce deviations from an established standard, creating consistency and efficiency across operations. For example, in a Local Government setting, standardising the application process for building...

The long-standing debate between Best of Breed (BoB) and All-in-One (AiO) software solutions is often revisited, yet for many established local governments, this discussion has lost its original weight. Moving from one approach to the other isn’t a straightforward...

I can always earn more money, but I can’t buy more time. Or can I? In reality, I can use my financial resources to reclaim my time by outsourcing tasks, hiring help, or automating routine activities. Money can buy things but it cannot buy happiness. Or can it? When...

Processes surround us in everything we do. While they are often unseen and rarely documented, they underpin every task, whether large or small. When we seek to improve a process, any enhancement is often only temporary unless there is a structured approach to...

We are bound by our own blindness, deafness, and muteness. The deeper issue is our unawareness of these limitations. Even when we become aware, it’s all too easy to let that awareness slip away. True liberation may lie beyond this—where my conscious mind attentively...

I often assume people respond directly to what I say, yet I sometimes overlook that their reactions are shaped by where I speak from. Their responses hinge on my perceived position relative to them—whether that’s social, financial, relational, or in the corporate...

Digital transformation is not a destination; it is a continuous journey. Along this path, failures are inevitable. We may make misguided choices, overprocess trivial tasks while overlooking crucial ones, deviate from established processes, or at times, adhere to them...

At my Council, when I put in the effort with my team to enhance performance and efficiency, it naturally leads to better customer service and a reduced headcount. On the surface, this seems like a significant achievement. Yet, there’s a hidden consequence: increased...

Enterprise process and service improvement initiatives can be highly complex, making it difficult to engage various teams within the Council. Different departments, such as revenue, rates, finance, planning, and building, have their peak busy periods, where urgent BAU...

Change begins from within. Often, we recognise a problem but see it as overwhelming and complex. We might hold onto the hope that someone else will step in and solve it for us. Take, for instance, the quality and efficiency of service delivery within our team. The...

Improving service delivery requires a dynamic approach, combining various strategies tailored to an organisation’s needs. It is crucial to understand that this process is not a one-time initiative but an ongoing cycle of assessment, action, and reassessment. As...

Process improvement is a distinct discipline requiring specialised oversight and strategic focus. Department managers in local governments may not have the capacity or expertise to drive effective process enhancements. Establishing a Chief Process Officer (CPO) role...

Here are some key questions I pose to any project team focused on enhancing business processes “on paper.” By "on paper," I mean the creation of well-intentioned as-is and to-be process diagrams, with the hope that one day these improved processes will be implemented...

Improving efficiency often comes at a cost. Sometimes, there’s no budget for it. Other times, it’s simply not a priority. But stakeholder pressure to improve service is a constant. As decision-makers, this can add stress to our roles. That’s when we can get creative...

Weeds and parasites thrive effortlessly, designed by nature to emerge, exploit resources, and blend seamlessly into their surroundings—often invisible until they’ve taken hold. They may seem harmless initially, but left unchecked, they spread, draining energy and...

One powerful way to become a game changer is to redefine the game itself. When we shift the rules, it impacts everyone—players, stakeholders, and the entire ecosystem. A new rule alters the environment, and that change forces everyone involved to think and operate...

The adage, “We get what we pay for,” often falls short in the realm of B2B procurement, particularly in local government technology projects. When implementing complex solutions like enterprise software, digital infrastructure, or data management systems, cost does...

As executives, our role is to make decisions. Delaying, avoiding, or making hasty decisions is equivalent to neglecting our responsibilities. These actions not only hinder our effectiveness but also create a ripple effect, preventing our teams from moving forward. For...

There are several reasons why local governments struggle to keep up with the pace of technology. One of the most common issues is the lack of timely executive decision-making. Let’s be honest—executive teams are often overwhelmed, juggling too many competing...

We must know enough to be effective.Before I demand anything, I must first understand my needs. When I aim to improve something, I need to have a clear picture of what excellence looks like. When I make buying decisions, I must know what constraints I’m working...

Why do government institutions tend to be inefficient and lag behind in technology adoption compared to commercial organisations?The answer may be this: because they can. However, this is not the full picture. Government inefficiency is often the result of...

If I say to my 10-year-old daughter:"I expect you to keep your room in good condition,"the instruction is clear, but may not fully communicate what I expect from her. If I take a more prescriptive approach that makes sense for her age, I might say:"Please make sure...

Would I do it if it were my own money? Perhaps sincerely asking ourselves this question before proposing a new project, calling a meeting, or entering into an argument would likely change how we act and respond. We might think twice, or even more, before making...

There is a clear distinction between activity and impact, though we often use these terms interchangeably. The common assumption is that more activity will naturally lead to impact. For example: We have executed 450 test cases; Written 500 lines of code; Called 4000...

We are lazy by design. We conserve energy and use the minimum possible brain power. We like to be well-fed and keep ourselves entertained. We crave security and safety. There’s nothing wrong with this. For most of us, it’s simply part of being human. However, to truly...

Have you ever encountered an organisation responsible for offering such a long list of services? Community engagement and events management Infrastructure projects and contracts management Assets maintenance and management Revenue management Planning and building...

To draw meaningful qualitative conclusions, it helps to base them on a solid baseline. I may say I am healthy, rich, famous, and successful, and you may have a completely different opinion about me. In such cases, both of us may be right in our own view. However, if I...

Many problems exist because they are no one’s problem. These problems are owned by no one—they are orphans with no parent. Left unaddressed, these orphaned problems often give birth to even more issues. Take the example of outdated technology in Local Governments...

Being a project sponsor for a technology project is not a title; it is a responsibility. To do justice to this responsibility, one must understand what it truly means to be a sponsor. Business knowledge alone is not enough. As a sponsor, you are responsible for making...

I am a slave to my habits, thinking patterns, and autopilot decisions. I will win my freedom by becoming fully aware of myself and my environment. By staying consciously present and making informed choices, I will achieve ultimate freedom.

Some tasks may seem dull, but they’re essential—think testing software, posting invoices, counting votes, or reconciling accounts. As leaders, it’s easy to rely on authority to push these through, but there might be a better way. A way that works if we take...

What is the relationship between Digital Transformation and Digital Capability?

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