Stages in Digital Business Transformation: Results of an Empirical Maturity Study

Managers and decision makers need to transform their organizational routines and structures to meet the challenges of the digital age. Even though organizational change is by no means a new topic, many companies struggle to recognize and make sense of the often very disruptive changes affecting all industries. In order to foster an understanding of the phenomenon and the development of a digital transformation strategy, this research derives typical stages in a digital business transformation process from empirical data. The nine dimensions of the digital maturity model (DMM) provide a more profound understanding of the relevant levers for managing digital transformation. The DMM was implemented together with a survey of 547 individuals from 417 organizations in Switzerland and Germany. Based on the survey data, we used the Rasch-algorithm and cluster analysis to derive five maturity stages. The findings show that while digital affinity and experimenting with digital technology are already prevalent in companies, a strategically planned transformation and usage of advanced data analytics in business processes are less common. The results from this study yield insights into how activities in digital business transformation are currently tackled and prioritized and thus contribute to the body of knowledge about organizational transformation.