Digital Maturity Index

What is the Digital Maturity Index?

The industry 4.0 digital transformation is here and the manufacturing industry will never be the same. To compete in the ever-changing market, manufacturing companies have no choice but to digitalize their operations. Onboarding new technologies is a big step and some manufacturers are more open to it and more prepared than others. The Digital Maturity Index (DMI) is a standardized method of measuring a company’s readiness to take on digital transformation. 

Why is the Digital Maturity Index Important to Manufacturers?

As the manufacturing industry as a whole is transitioning to digital manufacturing, it is important for individual companies to know where they stand in the process and what steps they need to take to be part of the smart manufacturing digital transformation. This means assessing the company’s general attitudes towards change as well as what capabilities already exist within the company and what has yet to be learned. 

A manufacturing company’s digital maturity score highlights any existing strengths they can leverage and which weaknesses they must overcome in order to take full advantage of an industry 4.0 digital transformation. A full understanding of the digital maturity framework can help a manufacturing company plan for its transition to digital manufacturing in a more organized and efficient way. 

What are the Elements of the Digital Maturity Framework?

Different models may use slightly different elements, but the original digital transformation maturity model is based on 6 “dynamics” that are analyzed in order to determine where a company lies on the Digital Maturity Index. The 6 dynamics are:

• Digital Strategy – A plan for where the company wants to go and how it plans to get there using technology.
• Digital Workplace – How employees engage with technology in the workplace.
• Digital Offering – How technology is used to create value in the products and services that the company offers.
• Customer Intimacy – How strong relationships are between the company and its customers.
• Operating Model – The company structure and its effectiveness in using existing resources to create value.
• Technology – The way technology is currently used in the company. 

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What are the Stages of Digital Maturity? 

While different models may vary slightly in their definitions, the generally accepted stages of digital maturity are:

• Traditional – Use mostly legacy systems and not much technology. Little desire to effect change in the business.
• Emerging – Slowly embracing new technologies in a reactive way (i.e. when problems arise they may be addressed using technology, but no proactive changes are made).
• Engaged – Elements of digital manufacturing begin to take hold in certain departments, but there is no unified digital strategy company-wide.
• Competitive – A strategy is in place and the digital transformation is underway. Plans are still needed for future growth.
• Maturing – Reached the pinnacle of the smart manufacturing digital transformation with a fully digitized system in place. More easily able to respond to market trends and become an industry leader.