What digital transformation means in practice
A company's digital transformation often starts with the question of which software to buy. That is understandable, but usually the wrong starting point. A new system on poorly organised processes and data only speeds up existing problems: errors appear faster, and manual reconciliation just moves from one spreadsheet to another.
Digitalising a company in practice means connecting processes, data, systems and people so that the organisation works differently. A customer order travels from sales to the warehouse and the invoice without re-keying. Management sees the same numbers as the departments, because they come from the same source. Repetitive tasks run automatically, and employees spend their time on exceptions and customers. Technology is a tool here, and the measure of success is business results: shorter processing time, fewer errors, better decisions and lower risk of downtime.
That is why digital transformation is not a project of the IT department but a programme led by management. IT provides architecture, integrations and security, while the business units are responsible for processes, data and the actual use of solutions. Before you decide where to invest, you need an honest picture of your starting point. That is what the digital maturity assessment on this page is for.
The five-level model of digital maturity
Maturity models place organisations by how systematically they use digital capabilities. The five levels in the tool follow the established logic of maturity models: from individuals solving problems as they arise to an organisation that improves in a planned and measurable way.
| Level | Characteristics | Typical sign | Main challenge |
|---|---|---|---|
| 1 Initial | Digitalisation is ad hoc and depends on individuals | Key data lives in spreadsheets and mailboxes | Assigning responsibility and priorities |
| 2 Developing | Individual departments are digitalised but poorly connected | Manual data transfers between systems | A shared picture and a single source of truth |
| 3 Defined | Strategy, key processes and leading systems are defined | The ERP covers most processes, integrations are partial | Even digitalisation and data quality |
| 4 Managed | Digitalisation is planned and benefits are measured | Dashboards with shared indicator definitions | Automation and advanced analytics |
| 5 Optimised | Continuous improvement based on data | Employees themselves propose and introduce improvements | Keeping up the pace and managing technical debt |
A higher level is not an end in itself. For many organisations a sensible goal is a stable level three or four in the areas that are key to their business. More important than the average is evenness: an organisation is usually only slightly more mature than its weakest area, so the tool caps the overall level at no more than one level above the weakest dimension.
The six dimensions of digital maturity
The digital maturity assessment in the tool checks six dimensions, each with three questions.
- Strategy and leadership. Whether the digital strategy is linked to business goals, who is responsible for digital initiatives and whether development has its own budget, separate from maintenance.
- Processes. Whether key processes are digital from start to finish, how much routine work is automated and how dependent you are on paper, Excel and email.
- Data and decision-making. Whether you have a single source of truth for customers, products and suppliers, how management reports are produced and whether you trust the data.
- Systems and integrations. How the ERP, CRM and other systems cover the business, whether they are connected through documented interfaces (APIs) and how much outdated systems hold you back. When choosing or replacing a business system, the ERP selection checklist helps.
- Infrastructure and security. Whether the infrastructure is planned, whether you are prepared for an outage and data loss, and whether the level of security meets the requirements the NIS2 Directive places on entities in scope. You can check this in more detail with cyber attack readiness.
- People and culture. Employees' digital skills, the way change is introduced and the digital experience of customers and employees.
The dimensions depend on each other. Advanced analytics does not work without well-managed master data, automation does not work without integrations, and no solution brings benefits if people do not use it. If you are thinking about artificial intelligence, data and strategy are decisive, so after this assessment also check your AI readiness.
Typical obstacles to digital transformation
Digitalisation projects rarely stall because of technology. More often they stop at organisational questions.
- No owner. If digital transformation has no responsible person at leadership level, priorities are set by whoever is loudest, and projects compete for the same people.
- Technology before process. Buying a solution before it is clear which process it should support and how leads to extensive customisation or to a solution nobody uses.
- Disorganised data. Duplicate and incomplete master data is one of the most common causes of delays when introducing new systems and of distrust in reports.
- Technical debt. Outdated systems that only one person can maintain slow down every change and increase security risk.
- Too little time from key users. The people who know the processes best are also the most overloaded. Without them the solution does not reflect the actual work.
- Too many simultaneous initiatives. Ten concurrent projects with scattered resources usually deliver less than three completed ones.
A plan for the first 90 days after the assessment
A maturity assessment is useful only if decisions follow it. The plan below turns the result into a workable programme without immediately starting a large project.
| Period | Key activities | Result |
|---|---|---|
| Days 1–30: baseline | Assessment with management and heads of key areas, aligning views, inventory of processes, systems and data flows | A shared picture of the situation and a list of gaps |
| Days 31–60: priorities | Selecting three to five initiatives by business value and risk, appointing owners, defining indicators and budget | A confirmed portfolio of initiatives with owners |
| Days 61–90: first results | Delivering one or two quick wins (for example automating a frequent task, a dashboard for management) and designing larger projects | Visible progress and a plan for next year |
When choosing priorities, first close the gaps that pose a risk to the business, for example untested backups or a system without vendor support. To judge how much downtime you can afford, use the RPO and RTO calculator. Only then take on initiatives that bring new value.
It helps if several people complete the assessment independently, for example the managing director, the head of finance, the head of production or operations and the head of IT. Differences in answers are often more telling than the result itself, because they show where management sees the situation differently from those who work with the systems every day.
Funding digitalisation
For digital transformation projects, EU and national programmes occasionally offer grants or favourable financing, for example from national recovery and resilience plans or cohesion programmes. Calls differ in who can apply, eligible costs, the co-financing share and deadlines, so check them before planning an investment.
An incentive should not determine the content of the project. Design it so that it makes sense even without one, with a clear business goal, indicators and a documented baseline. The maturity assessment and the 90-day plan are a useful basis here, because calls often require a description of the starting situation and the expected effects.
How to measure progress
The maturity level changes slowly, so it is not enough for day-to-day management. Alongside the annual repeat of the assessment, track the indicators you defined for individual initiatives:
- Processes: processing time from order to invoice, share of manual interventions, number of errors and complaints.
- Data: share of duplicate or incomplete master records, time to prepare monthly reports.
- Systems: number of manual data transfers between systems, share of systems with vendor support.
- Infrastructure and security: success and duration of restore tests, multi-factor authentication coverage.
- People: actual use of new solutions, satisfaction of users and customers.
Measure baseline values before an initiative starts, otherwise you will not be able to prove progress. Keep the indicators few and understandable to management: better five that you really track than thirty in a report nobody reads.
Humanfrog helps organisations from assessing the starting point and strategy to optimising processes, integrating ERP systems, developing custom solutions and reliable infrastructure. To check the result of the assessment and turn it into a plan for your organisation, talk to us.
