25% of mid- and large organizations will successfully target new ways of working in 80% of their initiatives. No idea what capabilities or practices are needed, don’t know where to begin or prepare for digitalization

Digital readiness assessment:

• Analyze internal and external environment, how it will change
• Assess organization’s current position, capabilities, resources
• Provides a baseline for how to achieve the vision
• Outcome: prioritized strategic objectives (based on organizational vision); future state

Key activities:

• Evaluate current capabilities
• Gap analysis
• Output
• Risk and challenges

1. Evaluate current capabilities

Evaluate (use internal or external assessors) performance in:

• Strategy and digital positioning: is there a digital transformation vision ? Is it shared ?
• Value streams, practices, processes: what is the maturity and impact to the digital business ?
• Information and technology: is automation used ? Are digital technologies exploited to benefit customer and organization ?
• Organizational development and learning: what are recruiting/hiring practices ? Are growth opportunities available ?
• Risk management: is business/digital risk and opportunities understood and balanced ?
• Innovation: is innovation valued and integrated across the organization ?

Gap analysis:

• Finds organizational strengths and weaknesses
• Defines actionable, practical improvements for the short-, mid-, and long-term

Contains:

• Organization’s objectives (future state)
• Current state for each objective
• Description of needs to achieve future state (capabilities, resources, partners…)
• Actions to close the gap

Output:

• Cultural readiness (openness to change, innovative culture etc.)
• Skills assessment for implementing and using digital technology
• Level of innovation, or openness to innovation
• Current levels of automation
• Extent to which value streams have been defined and are ready to be automated
• Nature of products and services provided (to what extent is it possible to move them into a digital operating model ?)
• Customer personas and profiles
• Leadership style
• Controls and governance

Risks and challenges of the digital readiness assessment:

• Overly complex assessments: presented as scientifically accurate but, in reality, are subjective and based on personal opinion
• Too simple: only investigate a few individuals with limited questions
• Don’t include risk in the assessment: risk assessment is too general; risks that are unique to digital initiatives aren’t included; consider stakeholder understanding of the risk of transforming
• Don’t include comprehensive practices: too much of a focus on architecture (use of cloud, what tools are used…); need to understand technology but also the management of technology
• Strategy and leadership are not properly assessed: Leadership understanding of the digital landscape isn’t included or leadership role in transformation

Go back to ITIL 4 Strategic Leader Certification Course: Creating a Digital Strategy to finish this chapter or to the main page ITIL 4 Strategic Leader Certification Course.