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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Our world is a collection of concurrent drama stages. We all are participants and audiences of the drama at the same time. As audiences, we are busy watching who is on the stage. We hardly remember the previous stage artists and the injured, sick artists. Let us see a...

Organisations have various types of non-financial debt: For instance: The software does not fully support the business processes The software integrations are manually managed The are quite a few bugs in the software The staff is not fully utilising the given...

Achieving goals, meeting targets, and changing the world tends to take our pride to the next level. We believe we have the power to make things happen. It gives us confidence that we are someone. It boosts our ego too. However, we feel too helpless when we struggle to...

Most of us don’t have time to think about others. Everyone is busy fighting their demons. So, if someone stops to offer some advice, then pay your full attention. Stop giving excuses, sharing other problems and wasting time. You may unconsciously satisfy your pride by...

The biggest obstacle to improving our condition is not additional budget, time, resources, knowledge, or expertise. Instead, it is a very simple but profound thing. It is called ‘action’! We will find a way if we consistently take action to improve our condition. It...

We all have emotional connections to past events, things, places, people and experiences. Our past is part of us. Sometimes we want to re-live our past and cherish memories. Where we stand today is the result of our journey so far. If we are not standing in a good...

We talk about the company's vision, mission, values, strategy and goals. But what about corporate habits? Corporate habits are the default or standard way the employees operate within the organisation. These habits also form part of the corporate culture. For example,...

Do not waste time changing others to think like you. We all view and perceive the world around us very differently. We are slaves of our habits. Our viewpoints, thinking patterns, and values are unique to us. So, save your time and energy by not trying to change...

We love to talk about others. We speak behind their back about how bad they are. We criticise their work, habits, dressing sense, relationships – almost everything possible! But why do we do that? One reason is that it takes focus away from ourselves. Getting in front...

We often perceive Sales professionals negatively. We see them as trained individuals who take our money to offer a product or service. However, it is a very narrow viewpoint. Sales professionals play a vital role in our personal and business life. They help us make...

In the business environment, we determine loyalty by the number of years in the service. However, it is one of the most crude ways to determine loyalty. Let us measure loyalty in a more real way. Here are a few characteristics of a loyal employee: They are prepared to...

“I didn’t like the design!” may mean: No one consulted me about the design before. Or, I didn’t want anyone to prepare the design. Or, There is no need for a design. Or, I reviewed it and didn’t like the design. For various reasons, we do not often communicate...

We often do not regret our wrong decisions in projects, business, and life. Instead, we regret the decisions that we did not make. For example: Holding off on the decision to fire the unproductive employee Holding off on a decision to invest in real estate Continue...

Projects are like painting on canvas. Few decisions are arbitrary; others are not. Few decisions are difficult to change. While we have a vague understanding of the end result, the destination, approach and outcome can vary. It makes sense to start with a Minimal...

The progression through Associate Consultant, Consultant, Senior Consultant, and Principal Consultant may mean someone has been a consultant for a long time. The progression of job titles may be because the consultant has developed as a professional. It may be because...

Consider ditching the weekly Project Status Report (PSR) meeting with the live Project Status dashboard. Consider replacing Risk registers and risk review meetings with dynamic Risk dashboards. Let the owners of risk call for meetings when and if required. Consider...

As leaders, we tend to do too much! We tell the team what to do, how to work which each other, and things to avoid. It may be because we know too much while working in the organisation for a long time. The Project team can be relatively new. But don't forget that the...

You may know someone whose house is a perfect mess all the time. However, to them, everything is normal. You may also see a few desks full of coffee mugs, paper, and junk in your office. However, the people who use the desks may be perfectly harmonious with clutter....

We often stress too much about the stress. We need to stress ourselves and others to achieve bigger things. We must sweat, persevere, and sacrifice to attain higher goals. When we are on our toes, we develop much faster as individuals and organisations. Stress is not...

Humans are a source of enormous energy. When we group and represent an organisation, we become an energy house. We may utilise our energy constructively or destructively. Where the majority of our energy will go depends on organisational culture, leadership, vision,...

Hiring an expert/consultant can be expensive. Therefore, many SMEs often try to avoid hiring them. They try to source resources in-house or other alternate ways. So, why do we need an expert? Here is a list of a few reasons: Experts help businesses to avoid making...

Making decisions is hard! When we make decisions, we own consequences too. If the outcomes of our choices are unpleasant, no one else is to blame. We are on the hook. So, to get off the hook, we often get others to make decisions for us. Should I buy new pair of...

When you are in pain, you may need help from others. However, others may know about your pain too. This can be an opportunity for others to sell to you. Unfortunately, many who lack integrity may use this opportunity to sell and exploit you further because you are in...

In the last few posts, we are grinding on innovation. So in this post, I am addressing the question – how to start innovating? So, what must businesses do to start innovating? In the last post, we covered that innovation starts by asking questions and challenging the...

We all talk about innovation. But how does innovation starts? What triggers us to innovate? There may not be one particular trigger. However, one of the most common and profound triggers is ‘the question’. The questions like: Why does the customer have to wait? Why do...

When you hear the word innovation, what comes to your mind? You may think about new or emerging technology. For example, Blockchain, Crypto, IoT, AI, and Robotics. Other things that come to your mind may be a lot of capital investment projects. It may sound too much....

We all are busy doing productive or unproductive work. We like to follow easy steps to achieve the outcome as soon as possible, with minimum effort, cost, and risk. A Business owner may not be interested in tax calculations. However, he may love to know all about tax...

It is excellent to stick to the agenda and tightly run meetings. However, we must allow freedom of new thoughts, ideas, and questions. These are all the byproducts of discussion. These topics may not directly relate to the meeting agenda but are essential to note. The...

We may have no idea about art, but we may not hesitate to tell an artist where to improve. We can have strong opinions about the look and feel of the software but no clue about user experience. Yet, we tell designers how to design all the time! As...

He made me cry! She gets on my nerves! The team is useless! My manager doesn’t have a clue what he is doing! My employees make me mad when they continue to work from home! We make such complaints all day. Although we may not say it out loud, and tell such narratives...

Give the best employees the convoluted software systems and see their motivation dissipating into thin air. Give average employees modern business systems and see their productivity skyrocket. No one likes to find information. We like the information to be available...

We buy for different reasons. There is nothing good or bad with our buying habits, but few practices are better than others. Let us look at the following three types of buyers: Demand-specific buyer: This buyer goes to the market to satisfy the demand. For example, if...

The Project team expects you to make all the major project decisions as a Sponsor. It may be a default position and expectations, but you have a conscious choice. You can choose to be a decision maker or decision facilitator. There is a big difference between them. As...

As a business executive, you are responsible for making major business decisions. The challenge is making decisions in an area where you may not have the required domain knowledge. Often one such area is Information Systems. The entire business and organisation suffer...

Forming a Project team is one of the most crucial tasks for the Project's success. However, it is a challenging task to get the best people to work on your Project. Why? Because, firstly, they are already in demand. Secondly, there are in scarcity. Thirdly, the best...

"What Got You Here Won't Get You There" is one of the great books by Marshall Goldsmith. The central theme is that the tools and habits that have helped us to achieve what we have now may not help to get to the next stage in life. Hence, we must find new tools,...

The Project teams juggle multiple balls (tasks). They often wear multiple hats and pretend that they have got things under control. To demonstrate this, they must have a few balls with them. There should not be anyone waiting for a ball from them. Hence, it is common...

Human potential is the most underutilised resource. The existing structure of the division of labour makes it even worse. In the workforce, everyone is bound to have a job profile. The expectation is for the employees to operate within the parameters of their job...

It may sound strange, but it is true! Technology projects revolve around the Sponsor's focus point! The Project team, vendors, and Business executives ensure to keep the Sponsor in confidence. Ultimately, as a Sponsor, you are accountable for the project. You are the...

Project delivery teams love to standardise things, so it is easy to rinse and repeat! In the Project execution, the repeatable steps are easy to replicate and automate. Further, it increases the efficiency and profitability of the delivery teams. Standardising project...

Observing yourself is a fascinating thing to do. While parking my car in the city, when I see too many parking spots, I often catch myself taking my time deciding where to park. When there are too many choices, I take my time to select the best one. So, no other car...

Life has gifted us with expectations. We expect things to happen in specific ways. We assume that if we do the right thing, life will return good to us. We plan and think that we have things under control. Then, life does what it has always done! We get bitter...

It is a fascinating question: From where to start the digital transformation journey? There is no one answer to this question. You could say start by refining Business Strategy and goals or, Develop an Enterprise or Business Architecture or, Documenting current...

Let me ask you: Are your requirements futureproof? I know it is a tricky question to answer. How can anyone predict the future? But, we must have a vision for the future. When you buy a new house to live in, you may not know your exact requirements. However, you may...

Have you ever considered the following questions before implementing the ERP? Enterprise Architecture (EA) is not a discipline of producing nice drawings. Instead, EA practice is meant to answer these fundamental questions before embarking on the ERP journey. This is...

Before we start any physical development, we prepare architectural drawings for the building. Before developing software, the engineers create prototypes, wireframes, and technical architecture. Before developing any complex machines, engineers spend massive effort on...

Since morning, I have pondered the various facets of this question: What is listening? Here are a few leading thoughts: Many of us assume that listening is - not speaking. So, if we are not talking in the conversation, we are listening to the other person. However,...

In general, as customers, we hold a position of power. The service providers are meant to provide the best possible service, customer care and warranty. Therefore, when we speak, we are meant to be heard. We possess the position of power (either direct or subtle). The...

You may hear this common complaint from the Business Analyst or Consultants: But you do not provide clear requirements! Or The customer does not understand the requirements! Or You keep changing your mind about the requirements! It is one of the common complaints from...

When we get too busy with our lives, after a while, there is an epiphany moment. We realise that our house is a mess. There is too much stuff; things are unorganised and intertwined to present themselves as a perfect mess! The whole experience can be pretty...

What if my project is on track, but I am implementing the wrong software product? How about I am overeating because my fitness app reports I can intake more calories? How about I decide to watch TV rather than go for a walk, as my smart watch tells me I have enough...

There is a big misunderstanding about the role of ERP and CRM vendors. The common assumption is that ERP and CRM vendors are responsible for implementing their products based on your specific needs. If you assume that the vendors will offer a turnkey solution by...

Uneducated buyers lose the most in the marketplace. Seriously, it is not the seller's job to educate buyers if their offering is fit for purpose. The buyer must take the initiative and understand the problem, pain points, and how the proposed solution will fix the...

Any good host would create an environment to make their guests comfortable. The sensible host even alters the environment (lighting, food, music) that suits the guest’s preferences. Similarly, we must develop the habitat of animals and birds before bringing them to...

While preparing for advanced mathematic exams, I used to ditch a few unimportant topics, first. After all average student like me will not win by preparing everything. Similarly, when we go to the gym, we ditch a few exercises that do not assist us in meeting our end...

We hear a lot about greatness. Great products, people, experiences, and services. Then, there are more inspirational quotes like ‘Good is the enemy of great.’ We hear about greatness from the motivational speaker too! In addition, salespeople often refer to greatness...

What is the relationship between Digital Transformation and Digital Capability?

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