TM Forum Digital

Maturity &
Transformation
Fundamentals
Online
Student Notebook
© TM Forum
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Maturity & Transformation Fundamentals.
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Module 1: What is Digital?
What is Digital?
 Digital Origin & Dictionary Definition
▪ Origin: consensus is late 15th century,
1450 – 1500, from the Latin digitalis or
digitus (e.g. of the fingers, toe or digit)
so the definition has morphed
considerably since that time.
▪ Today: an adjective referring to signals
or data expressed as series of the
digits 0 and 1 so binary, but typically
represented by values of a physical
quantity such as voltage or magnetic
polarization.
▪ While technically accurate, today’s
definition doesn’t really address how
organizations become digital.
A More Relevant Definition
▪ Google “what is digital” and the
results aren’t consistent nor are they
current which highlights the lack of
clarity here.
▪ We are going to leverage a 2015
definition from McKinsey &
Company and while not perfect, it
does provide more precision:
 Creating value in customer experiences
 Creating value at new frontiers
 Creating foundational, organizational
and technological capabilities that
enable creating value in customer
experiences and at new frontiers

http://www.mckinsey.com/industries/high-
tech/our-insights/what-digital-really-means
Digital Characteristics
And beyond the definition, below are some attributes or characteristics of being
digital that should be noted and cultivated (the list is in alphabetical order):

▪ Be agile ▪ Don’t accept failure, but

▪ Be curious
▪ Be patient and proactive
▪ Be unreasonably aspirational /
possess “vision”
▪ Benchmark against best practices
as not everything comes from
under one roof
▪ Challenge everything (e.g. there
are no sacred cows)
▪ Collaborate and engage
accept that it is part of the
process as mistakes get
made and manage it
▪ Focus obsessively on the
customer and their
experience
▪ Increase the use of data in
your decision making
▪ Plan, don’t just react
▪ Etc. (highlights the dynamic
nature of this list)
People, Process & Technology (aka The Golden Triangle)

▪ For an organization to achieve some

level of digital maturity per the
definition of digital and the attributes /
characteristics, it requires a mix of:

 People

 Process

 Technology

▪ And for every organization it will be

different (if we knew the recipe for this
cocktail, we’d already be retired).
People, Process, Technology & Data
▪ Diamond
 People, Process,
Technology & ...
 Data
▪ Whereas Data used to be a
component of Process &
Technology, it’s now so
prevalent that it has to stand on
its own.
▪ More data was created in 2014
and 2015 than had been
created in the entire previous
history of the human race and
the pace is accelerating.
https://www.linkedin.com/pulse/people-process- https://www.forbes.com/sites/bernardmarr/2015/09/30/
technology-triangle-dead-has-evolved-diamond-wagner big-data-20-mind-boggling-facts-everyone-must-read/
What is Digital - Review

▪ Digital is necessary
▪ Digital is not 100% clear and
there isn’t a one size fits all map

▪ Requires a combination of:

 People
 Process
 Technology
 Data

▪ It’s a journey as much as a

destination
Module 2: Digital Transformation and
Why It Matters – Part I
Digital Transformation: Are you ready for exponential change?

Futurist, Gerd Leonhard

Digital Transformation Definition

Googling “Digital
Transformation”, “Digital” and
“Transformation” doesn’t
return a simple, yet thorough
definition. As a result, we will
take some interim steps to
build up to what we expect will
prove to be a relevant
definition.
Digitization

Digitization is creating a digital,

bits and bytes, version of analog
/ physical things such as paper
documents, microfilm images,
photographs, sounds and more.
It’s simply converting and / or
representing something non-
digital into a digital format which
then can be used by a
computing system for numerous
possible reasons.
Digitalization

Often used interchangeably with

digitization, Digit(al)ization
expands on it by enabling,
improving and / or transforming
business operations, business
functions, business models /
processes and / or activities by
leveraging digital technologies
and a broader use and context
of digitized data turned into
actionable knowledge with a
specific benefit in mind.
Digital Transformation

Digital Transformation is broader

than digitalization and is the
profound transformation of business
and organizational activities,
processes, competencies and
models to fully leverage the
changes and opportunities of a mix
of digital technologies and their
accelerating impact across society
in a strategic and prioritized way,
with present and future shifts in
mind.
Comparison
▪ Clear as mud, right?
▪ The key takeaways are:
 Digital Transformation is a
far more expansive
endeavor than either
Digitization or
Digit(al)ization.
 And this is what makes
Digital Transformation
significantly more
challenging because its
trying to move much larger
entities (e.g. organizations,
industries, countries,
society, etc.).
Module 2: Digital Transformation and
Why It Matters – Part II
Why Digital Transformation Matters - Missed Opportunities

▪ Overall telecom industry

revenue / profits growing,
but CSPs account for a
shrinking share of the overall
industry profit pool

 Content Creators /
Aggregators
 Content Distributors (Cable &
Satellite)
 Device Manufacturers
 Network Equipment
 Semiconductors
Why Digital Transformation Matters – Closing the Gap

Digital service enabler 2020 CSP

• CSP assets open to digital players • DSP and DSE capabilities
• Platform-based business model • Agile, Innovative, Transformed
• •
Digital services enablement

Ecosystem participation Cognitive capabilities to create

customer-defined experiences and
as-a-service” for ecosystem partners

Traditional CSP Digital service provider

• Traditional sources of revenue • Highly automated
(connectivity, voice/text, data) • Digital channels with customer-
• CSP-controlled customer interaction controlled interaction
• Rich customer experience

Digital services provisioning

Source: Outthinking Disruption in Communications, IBM Institute for Business Value

Some Keys to Succeeding with a Digital Transformation

James Bilefield of McKinsey & Company

Module 2: Digital Transformation and
Why It Matters – Part III
Why Digital Transformation Matters - Examples
▪ Alibaba
 Founded: 1999
 Revenue: $23B (2016)
 Stock Price: ~$179.5
(10/16/17)
 Market Cap: ~$454B
(10/16/17)
 Industries Disrupting:
• Distribution & Retail
• Payments
Why Digital Transformation Matters – Examples (cont.)
▪ Alphabet (aka Google)
 Founded: 1998
 Revenue: $90B (2016)
 Stock Price: ~$1009 (10/16/17)
 Market Cap: ~$693B (10/16/17)
& forecast as one of a few
companies to become 1st to pass
$1T(rillion) in market cap
 Industries Disrupting:
• Advertising
• Knowledge Sharing
Why Digital Transformation Matters – Examples (cont.)
▪ Amazon
 Founded: 1994
 Revenue: ~$136B (2016)
 Stock Price: ~$1006 (10/16/17)
 Market Cap: ~$483B (10/16/17) &
forecast as one of a few
companies to become 1st to pass
$1T(rillion) in market cap
 Industries disrupting:
• Retail & Distribution
• Information Technology via
Cloud Computing
Why Digital Transformation Matters – Examples (cont.)
▪ Apple
 Founded: 1976 (reborn 1997)
 Revenue: $215B (2016)
 Stock Price: ~$159.5 (10/16/17)
 Market Cap: ~$825B (10/16/17) &
forecast as one of a few companies
to become 1st to pass $1T(rillion) in
market cap
 Industries Disrupting:
• Communications / Mobile
• Music / Photography
• Computers (initially)
Why Digital Transformation Matters – Examples (cont.)
▪ Facebook
 Founded: 2004
 Revenue: ~$27.5B (2016)
 Stock Price: ~$174.5
(10/16/17)
 Market Cap: ~$506B
(10/16/17)
 Industries disrupting:
• Communications / Social
Media
• (Mobile) Advertising
Why Digital Transformation Matters – Examples (cont.)

▪ SoftBank
 Revenue: ~$82.75B (2016)
 Stock Price: ~$44.5 (10/16/17)
 Market Cap: ~$98.5B
(10/16/17)
 Industries disrupting:
• Telecommunications (e.g.
Arm Holdings, Brightstar &
Sprint)
• Internet (e.g. Alibaba &
Yahoo! Japan)
Why Digital Transformation Matters – Examples (cont.)
▪ Tencent
 Founded: 1998
 Revenue: ~$22B (2016)
 Stock Price: ~$45.5
(10/16/17)
 Market Cap: ~$420B
(10/16/17)
 Industries disrupting:
• eCommerce & Payments
• Gaming
• Messaging
Why Digital Transformation Matters – Examples (cont.)

▪ Tesla
 Founded: 2003
 Revenue: ~$7B (2016)
 Stock Price: ~$350 (10/16/17)
 Market Cap: ~$58B (10/16/17)
 Industries disrupting:
• Automotive
• Energy Production &
Storage
Module 2: Digital Transformation and
Why It Matters – Part IV
Commonalities
▪ What do these companies have in common?
 Youth:
• 5 / 8, Alibaba, Alphabet, Facebook, Tencent & Tesla, are < 20 years old
• 1, Amazon, is < 25 years old
• 2, Apple & SoftBank, are > 35 years old, but Apple’s second act is ~20 years old
since Steve Jobs rejoined the company in 1997 and SoftBank has really taken off
in the last decade given its portfolio of companies
 Iconic founders
 Each company has pioneered at least one new way of doing business so is very
much a digital disruptor
 Understanding “the best way to predict the future is to invent it”
 Timing and luck
Digital Disruption

The Innovator’s Dilemma

(aka self preservation)
Why Digital Transformation Matters

▪ Self preservation – we’re

competitive and nobody likes to
lose.

▪ The opportunity to influence and

shape where things are going.

▪ Just about everything and every

industry is being reshaped so to
the victors go the spoils.
Digital Transformation and Why It Matters Review

▪ Digitization, Digit(al)ization
and Digital Transformation

▪ Competitive Landscape
▪ Why It Matters
▪ It’s a journey as much as a
destination
Module 3: How Did We Get Here? – Part I
How Did We Get Here?

In the Beginning
(~300 BC to 1830s)
How Did We Get Here? (cont.)

Ada Lovelace
(Confidant of Charles Babbage)
How Did We Get Here? (cont.)

Modern Era
(Late 1800s to 1970s)
Module 3: How Did We Get Here? – Part II
How Did We Get Here? – Moore’s Law
▪ Moore’s Law is the observation that
the number of transistors in an
integrated circuit doubles.
▪ The observation is named after
Gordon Moore, co-founder of Intel
and Fairchild Semiconductor, whose
1965 paper described a doubling
every year in the number of
components per integrated circuit
(revised in 1975 to every two years).
▪ Moore's prediction has proved
accurate for several decades so has
been used by the semiconductor
industry to guide long-term planning.
How Did We Get Here? – Post Moore’s Law

1968: Intel (semiconductors) 1987: Huawei (networking &

telecom)

1990: ARM Holdings

(semiconductors) 1970: Xerox PARC (R&D)

1975: Microsoft (software) 1994: Amazon (eCommerce)

1998: Alphabet (search) 1976: Apple (computers)

1977 Oracle (database) 1999: Alibaba (eCommerce)

2003: Tesla (automotive) 1979: EMC (data storage)

1984: Cisco, Dell & Lenovo

(networking & computers) 2004: Facebook (social media)
Module 3: How Did We Get Here? – Part III
 How Did We Get Here? - Internet

▪ For the Internet to have emerged, the idea

of data communications needed to exist.
 1st 3rd of 1800s: development of the
telegraph
 Mid to late 1800s: development of the
telephone
 Early to mid 1900s:
• Fundamental theoretical work on data
transmission and information theory was
done (e.g. Ralph Hartley, Harry Nyquist,
Claude Shannon, etc.)
• Data transmissions were point to point
Manhattan circa 1890
How Did We Get Here? – Internet (cont.)

▪ 1957: Sputnick, all 23” in diameter, was

launched in 10 / 57 which kicked off the
Cold War as the US felt it was falling
behind in science and technology.
▪ Sputnick spurred the creation of
Advanced Research Projects Agency
(ARPA) in 2 / 58 with $520 million in
initial funding which in 2017 dollars is
$4.4 billion.
▪ J. C. R. Licklider (aka Lick) was hired
from Bolt Beranek and Newman (BBN)
in 1962 to run ARPA’s Information
Processing Techniques Office (IPTO)
which laid the foundation for the
Internet as we know it today.
How Did We Get Here? – Internet (cont.)

▪ In late 1962 and early 1963 while at

IPTO, “Lick” formulated the ideas behind
the “Intergalactic Computer Network” or
Advanced Research Projects Agency
Network (ARPANET) which became the
precursor to the Internet.
▪ “Lick” left ARPA to in 1964, but not
before he convinced his colleagues Ivan
Sutherland, Bob Taylor and Lawrence
Roberts of the importance of ARPANET.
▪ ARPANET was launched in late 1969
with the initial 4 nodes being at Stanford
(SRI), UCLA, UCSB and University of
Utah.
How Did We Get Here? – Internet (cont.)

ARPANET
1969 1970
How Did We Get Here? – Internet (cont.)
How data travels over the Net.
▪ Shortly after ARPANET’s launch, it
became apparent that there was a
need to address the different
network protocols with a single one.
▪ By 1973 the idea had emerged to
hide the differences between the
network protocols by using a
common “internetwork” protocol.
▪ The resulting specification, Internet
Transmission Control Program
(TCP), became the protocol on
which the Internet is based when
published in late 1974.
 How Did We Get Here? – Internet (cont.)

▪ Throughout the 70s and into the early 80s,

ARPANET was used solely by the military,
research institutions and universities due to
it being government funded (non
commercial use).
▪ In the early 80s the military use was
separated out while the National Science
Foundation (NSF), among others,
increased its use by creating NSFNET to
connect researchers to the nation’s 5
supercomputing centers as well as to
colleges and universities.
▪ The NSF funded National Center for
Atmospheric Research (NCAR) in CO was NSFNET Backbone
also included in the network.
Module 3: How Did We Get Here? – Part IV
How Did We Get Here? – Internet (cont.)
▪ Global Reach
 Asia: South Korea embraced TCP/IP
as early as 1982, Japan in 1984 and
Australia in the late 80s.
 Europe: The European Organization
for Nuclear Research (CERN) in
Geneva, Switzerland started to
embrace TCP/IP in the mid 80s even
though there was resistance in much
of Europe. The National Research
Institute for Mathematics and
Computer Science in Amsterdam,
Netherlands was next in the late 80s.
▪ As NSFNET grew, ARPANET was
decommissioned in 1990.
How Did We Get Here? – Internet (cont.)

▪ Up until the early 1990s, it was

clear the revolution had not
been broadcast.
▪ The concepts and ideas behind
the Internet had been nurtured
out of the public’s view for ~30
years as the people in the
know were mostly academics
and researchers as ARPANET,
NSFNET, etc. were research
tools.
▪ However, as we entered the
90s, this was about to change.
How Did We Get Here? – Internet & Commercialization

▪ In 1989 a CERN employee, Tim Berners-

Lee, created hypertext which led to the
World Wide Web (WWW) which is the
graphical portion of the Internet.
▪ In 1992 NSFNET was formally opened
up to commercial use by the Scientific
and Advanced Technology Act.
▪ Tim also released the first browser, but
the one to really catch on was NCSA
Mosaic in 1993 developed at the
University of Illinois Urbana-Champaign
which eventually became Netscape.
▪ First secure online transaction occurred
in 8 / 94 and the rest is history.
How Did We Get Here?

Gordon Moore
(in his own words)
How Did We Get Here? (cont.)

Internet
Module 4: Why Business Needs to be More
Proactive – Part I
Why Business Needs to be More Proactive
“Digital disruption is at the heart of
all the conversations I have with
CEOs today…consider the fact that
that new digital business models
are the principal reason why just
over half of the names of
companies on the Fortune 500 have
disappeared since the year 2000.”

Pierre Nanterme
CEO, Accenture
Davos 2016
Why Business Needs to be More Proactive (cont.)

1-30
Only These 60 Companies Were in the Fortune 500 in Both 1955 and 2016
3M
Campbell Soup Deere
Hershey Lockheed
Pfizer Martin
Abbott Laboratories
Caterpillar Dow Chemical
Honeywell International Marathon
Proctor OilGamble
and
Alcoa
CBS DuPont Foods
Hormel McGraw Hill (now S&P Global)
Raytheon
Archer Daniels Midland
Celanese ExxonMobil
IBM MonsantoAutomation
Rockwell
Ashland
Chevron Freeport-McMoRan
International Paper NavistarAir
Sealed
ATT
Coca-Cola Enterprises General
Johnson Electric
and Johnson NCR
Textron
Avon Products
ConocoPhillips General Dynamics
Kellogg Northrup
United Grumman
States Steel
Boeing Holdings
Crown General Mills
Kimberley-Clark Owens Technologies
United Corning
Borg Warner
Cummins General
Kraft Foods
Motors Owens-Illinois
Weyerhaeuser
Bristol-Myers Squibb
CVS Goodyear Tire and Rubber
Lear PepsiCo
Whirlpool
Why Business Needs to be More Proactive (cont.)

31-60
Only These 60 Companies Were in the Fortune 500 in Both 1955 and 2016
3M Deere Lockheed Martin
Abbott Laboratories Dow Chemical Marathon Oil
Alcoa DuPont McGraw Hill (now S&P Global)
Archer Daniels Midland ExxonMobil Monsanto
Ashland Freeport-McMoRan Navistar
ATT General Electric NCR
Avon Products General Dynamics Northrup Grumman
Boeing General Mills Owens Corning
Borg Warner General Motors Owens-Illinois
Bristol-Myers Squibb Goodyear Tire and Rubber PepsiCo
Why Business Needs to be More Proactive (cont.)
▪ Companies who have declared bankruptcy
as a result of digital competitors:
 B. Dalton Bookseller

Bankruptcy  Blockbuster
 Borders Books
Do not pass Go,
 Circuit City
do not collect $200  Radio Shack
 Sports Authority
 Tower Records
 Toys R Us
 Etc.
Why Business Needs to be More Proactive (cont.)

World’s largest World’s largest World’s largest World’s most

Taxi company Accommodation provider Phone companies Valuable retailer

Owns NO Owns NO Owns NO Owns NO

X
X

X
X Taxis
Real
estate
Telco
infra
Inventory

Most popular World’s fastest World’s largest World’s largest

Media owner Growing bank Movie house Software vendors
Owns NO Owns NO Owns NO Owns NO
X

X
X
X Actual
Content Cinemas Apps
money
Why Business Needs to be More Proactive (cont.)

Digital Disruption
(Sustaining vs. Disruptive Innovation)
Module 4: Why Business Needs to be More
Proactive – Part II
 A Case Study in Being Proactive
▪ In 1985 Intel reported earnings of $.01 /
share and in 1986 the company lost $173
million due to competition from Japan in its
core memory business which led to layoffs,
plant closings, salary cuts, etc.
▪ As CEO, Andy Grove, and Gordon Moore
(Moore’s Law), exited the memory
business which at that time represented
80%+ of their revenue to focus on
microprocessors where the market at the
time was soft.
▪ The move to microprocessors succeeded
and is the primary reason Intel is the
dominant semiconductor manufacturer with
$60B+ in revenue.
A Case Study in Being Proactive (cont.)

Healthy Paranoia
Module 4: Why Business Needs to be More
Proactive – Part III
A Case Study in Being Proactive (cont.)
▪ While Netflix disrupted Blockbuster and
other video chains with its movie by mail
and no late fees service, it also saw
weakness in its business model.
▪ Netflix grew concerned about being
disrupted by streaming so in 2011 it
started the migration to streaming and in
turn raised its prices which trimmed the
stock price by ~75% to < $10 / share.
▪ Today Netflix’s stock has rebounded to
~$190 / share, after a 7 for 1 stock split
in 2015, which is far higher than its 2011
low and it’s using its primary competitor,
Amazon, to deliver its streaming
services.
Why Business Needs to be More Proactive Review

▪ Reactive
 Less prepared for change
 Muddies the future direction
 Less flexibility
 Fear of the journey

▪ Proactive
 Better able to innovate and
transform
 Able to see the future more clearly
 More flexibility
 Embraces the journey
Module 5: Embarking Upon Your Digital
Transformation Program – Part I
Embarking Upon Your Digital Transformation Program
▪ Given its 2017 and you are in this
class, we’re going to assume your
organization:
 has some familiarity with the
concept of digital
transformation
 considers that it has started
the process of digitally
transforming itself
▪ If one or the other of the above,
or both, aren’t accurate, we’d like
get your feedback on why you
think this is currently the case.
Embarking Upon Your Digital Transformation Program (cont.)

▪ Assuming your organization has

started its digital transformation
process, approximately how long
has this been underway?
 <= 3 years?
 3 years < x <= 7 years?
 7 years < x <= 12 years?
 12 years < x <= 18 years?
 > 18 years?
Embarking Upon Your Digital Transformation Program (cont.)

▪ What was / were the primary

reason(s) your organization
embarked upon its digital
transformation?
 Proactive management
 Groundswell of support from
employees
 Seemed like the thing to do
 Competitive pressures
 Organization viability is
threatened
 ???
Embarking Upon Your Digital Transformation Program (cont.)
▪ If we were to ask how things
are going, how would you /
your organization respond?
 Everything is great
 Moving forward, but a few
bumps in the road
 This is harder than we
originally thought, but we’re
chipping away at it
 Struggling
 No comment
Embarking Upon Your Digital Transformation Program (cont.)
▪ Before your organization started
on its digital transformation, do
you remember if there was any
type of assessment done?
 Yes or no?
 All employees, majority of
employees or just a select few?
 Were the results made
available to everyone whether
they completed it or not?
 Were the results leveraged as
part of a planning process?
Embarking Upon Your Digital Transformation Program (cont.)
▪ In our experience, strategic
planning tends to get
underutilized when it comes to
digital transformation.
▪ If organizations undertake an
assessment before getting
started, more often than not it’s a
smaller group of employees who
are involved.
▪ As a result, it doesn’t capture the
organization’s complete “As Is”
state as effectively as it could
due to the sample size.
Module 5: Embarking Upon Your Digital
Transformation Program – Part II
Embarking Upon Your Digital Transformation Program (cont.)
▪ To get the best possible
handle on an organization’s
“As Is” state, the larger the
sample size the better.
▪ When a solid baseline can be
established, then the
organizations needs to define
what its desired, or “To Be”,
state should be.
▪ Once the “To-Be” state has
been defined then it’s a
roadmap exercise to lay out
the plan for to get from the “As
Is” to the “To Be” state.
Embarking Upon Your Digital Transformation Program (cont.)

Perspective
Embarking Upon Your Digital Transformation Program (cont.)

▪ Where does your organization

fall in the hierarchy and why do
you think this?

 Infrastructure model
 Operating model
 Business model
 Something else?
Embarking Upon Your Digital Transformation Program (cont.)

▪ Why do you think your

organization falls where it does
in the hierarchy?
 Technology driven initiative
 Marketing / sales led
initiative
 Driven from the CEO
 Employee led
 Other
Embarking Upon Your Digital Transformation Program (cont.)

▪ Given the current state of your

organization’s digital
transformation, do you think an
organizational wide assessment
focusing on where things are
would prove useful?

 If so, why?

 If not, why not?

Embarking Upon Your Digital Transformation Program Review

▪ Length of time your organization

has been focusing on its digital
transformation.
▪ What prompted your organization
to start its digital transformation?
▪ What’s the current state of your
organization’s digital
transformation and why?
▪ The value of an organizational
wide assessment.
▪ Which model: infrastructural,
operational or business?
Module 6: Why Digital Maturity Matters – Part I
Why Digital Maturity Matters

You’ve just spent $90K+ on a new

Tesla Model X and 2 different
people have asked you to take the
car for a test drive.

Which one would you feel more

comfortable with?
Why Digital Maturity Matters (cont.)

▪ Is there anyone who would

choose the young man looking at
his phone, and if so, why?
▪ Given all / almost all of you
choose the middle aged man, can
you elaborate why?
▪ Trust:
firm belief in the reliability, truth,
ability or strength of someone
or something
Why Digital Maturity Matters (cont.)

▪ If we view business as a game, and as

in any game, there are winners and
losers.
▪ In Module 2 we highlighted several
companies, such as Alibaba, Alphabet
(Google), Amazon, Apple, Facebook,
Softbank, Tencent, Tesla, etc. plus
others like Airbnb, Netflix, Uber, etc.,
that are the digital standard bearers.
▪ Each of these companies, plus many
others, are aggressively creating new,
and pursuing existing, market share and
profits and the bigger the better.
Why Digital Maturity Matters (cont.)
▪ To effectively compete, digital
maturity is an absolute necessity.
▪ However, a conundrum arises for
an established organization
because:
 while they are starting feel an
impact from these digitally mature
companies so feel the need to
respond
 they know that their ability to
actually catch up with and / or
surpass these digital leaders is
unlikely in the near term
▪ So how do they start to close the
digital maturity gap?
Why Digital Maturity Matters – What is Maturity?

▪ Referring back to Module 1, What

is Digital, we’re going to revisit our
definition for digital:
 Creating value in customer
experiences
 Creating value at new frontiers
 Creating foundational, organizational
and technological capabilities that
enable creating value in customer
experiences and value at new
frontiers
▪ Maturity: having completed natural
growth or development, the quality
or state of being mature or having
attained a desired or final state.
Module 6: Why Digital Maturity Matters – Part II
Why Digital Maturity Matters (cont.)
Googled “digital maturity” and very little definitive is returned (not sure why the
image below attributes its definition to Merriam-Webster as when entering “digital
maturity” “Words fail us” was returned - https://www.merriam-
webster.com/dictionary/digital%20maturity ).

dig i tal (a) ma tu ri ty (n)1

What is digital maturity? Digital maturity goes beyond technology* and is about how business
are adapting in a digital environment.

To wit: Are they fundamentally changing what they do and how they do
it in order to compete effectively?

*Any technology: mobile, social, cloud, analytics, Al, blockchain, etc.

Merriam-Webster

MIT Sloan Management Review, 7/13/17: http://sloanreview.mit.edu/article/infographic-what-is-digital-maturity/

Why Digital Maturity Matters (cont.)
16%

14% 14%

Only 25% of companies 13%

12%

would rate themselves 11%

as digitally mature:
8%

7%

3%

How digital is 2%

your organization? 1 2 3 4 5 6
7 8 9 10

SCALE OF 1-10
EARLY DEVELOPING MATURING

34% 41% 25%

Compared to the digital leaders, we believe companies might be overly optimistic in their self assessment.

MIT Sloan Management Review, 7/13/17: http://sloanreview.mit.edu/article/infographic-what-is-digital-maturity/

Why Digital Maturity Matters – Success Factors

Digitally maturing companies make

Digital core to their business.
Not sure how they came up
The role of digital business is: with their %s, 130% (34% +
TOP RESPONSE
30% + 66%), but the idea that
digital is at the core of the
business for maturing
organizations makes a great
deal of sense.

MIT Sloan Management Review, 7/13/17: http://sloanreview.mit.edu/article/infographic-what-is-digital-maturity/

Why Digital Maturity Matters – Success Factors (cont.)

Digitally maturing companies look

far ahead when setting strategy.

Digitally maturing companies are

twice as likely as early-stage
Companies to develop strategies with
time horizons of five years or more 2x

MIT Sloan Management Review, 7/13/17: http://sloanreview.mit.edu/article/infographic-what-is-digital-maturity/

Why Digital Maturity Matters – Success Factors (cont.)

Digitally maturing companies are better able

to scale their experiments enterprise-wide.

“When my organization implements digital

business initiatives, they tend to start as:”
Note: Charts do not total 100 percent due to N/A responses

MOSTLY SMALL
20% EXPERIMENTS
35%
41%
8% 45% 52% MOSTLY BIG
ENTERPRISE-WIDE
58% EFFORTS

11%
10% BOTH SMALL & BIG
ENTERPRISE-WIDE
EXPERIMENTS

Early Developing Maturing

MIT Sloan Management Review, 7/13/17: http://sloanreview.mit.edu/article/infographic-what-is-digital-maturity/

Why Digital Maturity Matters – Success Factors (cont.)
▪ Some Omissions

 Culture

 Customer

 Operations

 Technology
Why Digital Maturity Matters – How to Gain Digital Maturity

▪ To achieve / reach some

level of digital maturity, your
organization needs to start
down the path (and we’ll
assume every organization

Are you has taken some steps).

▪ Mistakes will be made along
Experienced? the way and while that’s part
of the process, work to
minimize, and preferably,
eliminate them.
▪ Repeat after me - it’s the
journey, not just the
destination.
Module 6: Why Digital Maturity Matters – Part III
Why Digital Maturity Matters - Review

▪ Module 1: What is Digital?

▪ Module 2: Digital
Transformation and Why It
Matters?
▪ Module 3: How Did We Get
Here?
▪ Module 4: Why Business
Needs to be More Proactive?
▪ Module 5: Embarking Upon
Your Digital Transformation
Program
Why Digital Maturity Matters Review

▪ Module 6: Why Digital Maturity

Matters?
 Trust is critical
 Digital maturity to this point is not
always clear (and we expect to deliver
more clarity in the next section)
 Don’t overestimate your capabilities
and be aware that competition comes
from everywhere
 It’s a journey so it takes time, but that
doesn’t mean you can’t accelerate the
process
Module 7: Introduction to the TM Forum Digital
Maturity Model (DMM) & The GC Index – Part I
TM Forum’s Digital Maturity Model (DMM)

In order to survive and thrive in the digital market, service providers are embarking on
complex and demanding digital transformation journeys. To be successful, these
transformation programs require much more than embracing new technologies and
ways to interact with our customers – they demand holistic transformation of the entire
business, fundamentally redefining how the business operates.

A maturity model is a business (e.g. survey) tool used to assess the current (As Is)
status of certain capabilities that exist within an organization and help them to be clear
where these need to transform or improve (To Be).

https://www.tmforum.org/dmm
TM Forum’s Digital Maturity Model (DMM) - Timeline
Realization DMM v1.0
of need for launch (web
a DMM TM Forum Action accessible)
from TM Live Asia Week in and Action
Forum 2016 in Lisbon, Week in
members Singapore Portugal Vancouver, BC

1st half
of 2016 Jul16 Dec16 Jan17 Feb17 May17 Sep17

DMM DMM DMM beta,

kickoff Action v.9, launch
meeting in Days in (iOS only) at
Vancouver, London, TM Forum
BC England Live! in Nice,
France
DMM Dimensions

▪ DMM Dimensions
 Culture, People &
Organization
 Customer
 Operations
 Strategy
 Technology
 And 28 sub dimensions and
179 criteria / questions
across the 5 dimensions
DMM Dimensions – Culture, People & Organization

▪ Culture, People &

Organization:

Defining and developing an

organizational culture with
governance and talent
processes to support
progress along the digital
maturity curve and the
flexibility to achieve its growth
and innovation objectives.
Module 7: Introduction to the TM Forum Digital
Maturity Model (DMM) & The GC Index – Part II
DMM Dimensions - Customer

▪ Customer:

Providing an experience where

customers view the organization
as their digital partner using their
preferred channels of interaction
to control their connected future
on and offline.
DMM Dimensions - Strategy

▪ Strategy:

Focuses on how the business

transforms or operates to
increase its competitive
advantage through digital
initiatives; it is embedded
within the overall business
strategy.
DMM Dimensions - Technology

▪ Technology:

Underpins the success of digital

strategy by helping to create,
process, store, secure and
exchange data to meet the
needs of customers at low cost
and low overheads.
DMM Dimensions Review

▪ DMM Defined

▪ DMM History
▪ 5 Dimensions (28 Sub
Dimensions and 179
Criteria / Questions)

▪ It’s a journey as much as a

destination
Module 7: Introduction to the TM Forum Digital
Maturity Model (DMM) & The GC Index – Part III
The GC Index®
▪ You work in a business that, in order
to compete and thrive, needs to
innovate and drive transformational
change.
▪ It needs to manage, effectively, the
constant tension between being
problem-centered and the aspiration
to be possibility-centered.
▪ The GC Index® is a framework and
language that helps teams and
organisations to understand how to
align their talents to transformational
change through applying the DMM.
The GC Index® – Transformational Change

NON-LINEAR AND
POSSIBILITY
CENTERED (e.g.
Game Changer)

LINEAR,
INCREMENTAL AND
PROBLEM-CENTERED
(e.g. Polisher)
The GC Index® - Outcomes
At the end of this course, you will have:
▪ An in-depth understanding of a framework,
The GC Index, that you can use to:
 Compose powerful DMM project teams
that can deliver business objectives
 Maximise the contribution of each team
member
▪ An in-depth understanding of your own
approach to leadership with a knowledge of
how to get the best from ‘Game Changing’
teams
▪ Insight into the way that leading brands are
using The GC Index to support the pursuit of
Digital Maturity objectives
The GC Index® Clients
The GC Index® - Outcomes
The GC Index® – Repertory Grid Analysis
ELEMENT JANE EMMA FRANK JUAN EMILY JULIE MICHEL ELEMENT

STRATEGIC 1 1 4 5 1 4 3 TACTICAL

RISK TAKER 1 1 4 5 2 5 2 CAUTIOUS

VIGOROUS 3 1 4 5 1 5 3 LOW ENERGY

NO SELF DOUBT 2 1 4 4 2 5 2 DOUBTING

DRIVE TO SUCCEED 2 1 3 4 1 4 3 LAID BACK

IMAGINATIVE 4 1 5 3 3 4 1 PRACTICAL

PERSISTENT 4 2 5 3 1 4 4 FLEXIBLE

BIG PICTURE 1 3 5 3 3 4 3 DETAILED

The GC Index® Core Constructs

▪ Great at articulating a ▪ An obsession for turning ideas into reality

vision
▪ Ambitious, an obsessive drive to succeed
▪ Big Picture, Strategic
Capabilities ▪ A compulsion to share the idea

▪ Creative and imaginative ▪ Intensity and vigour

idea generation
▪ An appetite for risk taking
Module 7: Introduction to the TM Forum Digital
Maturity Model (DMM) & The GC Index – Part IV
The GC Index® Roles
The GC Index® in Action
The GC Index® – Myth of the Hero Innovator
The GC Index® – Multi- Dimensional Leadership

THE
THE THE THE
GAME
STRATEGIST PLAY MAKER = CONTEMPORARY LEADER IMPLEMENTER = CREATIVE PROBLEM SOLVER
ORCHESTRATES
CHANGER BUILDS
MAPS THE
THE FUTURE TRANSFORMS THE FUTURE
FUTURE
THE FUTURE
Angela Merkel Henry Ford
THE
THE THE THE
GAME
STRATEGIST = VISIONARY LEADER PLAY MAKER IMPLEMENTER = LEADER AS COACH
CHANGER ORCHESTRATES BUILDS
MAPS THE
TRANSFORMS THE FUTURE THE FUTURE
FUTURE
THE FUTURE

Elon Musk Ghandi

THE THE THE THE

IMPLEMENTER POLISHER
STRATEGIST
MAPS THE BUILDS
= TRADITIONAL LEADER PLAY MAKER
ORCHESTRATES CREATES A FUTURE = INSPIRATIONAL LEADER
THE FUTURE THE FUTURE TO BE PROUD
FUTURE
OF
Ana Patricia Botin Anita Roddick
THE THE
THE THE
GAME POLISHER
PLAY MAKER = CHARISMATIC LEADER IMPLEMENTER = DRIVER
CHANGER ORCHESTRATES BUILDS CREATES A FUTURE
TRANSFORMS THE FUTURE THE FUTURE TO BE PROUD
THE FUTURE OF

Richard Branson Martin Luther King

THE THE THE
GAME THE
POLISHER POLISHER
CHANGER CREATES A FUTURE = INVENTIVE LEADER STRATEGIST CREATES A FUTURE = ASPIRATIONAL LEADER
MAPS THE
TRANSFORMS TO BE PROUD TO BE PROUD
FUTURE
THE FUTURE OF OF
Coco Channel Eva Peron
Module 8: Preparing For and Taking the DMM
Survey – Part I
 Preparing to Take the DMM
▪ Given we’ve arrived at this section
of the course, the assumption is
your organization is considering or
has decided to pursue the DMM
assessment. If so, who in your
organization was responsible for
committing to DMM?
 CEO
 CXO (e.g. CMO, CFO, etc.)
 CIO
▪ If none of the above, who and
why?
Preparing to Take the DMM (cont.)

Possibly influenced by who your DMM sponsor is, CEO, CXO, CIO or someone
else, there are 3 different paths for starting the assessment process.

https://www.tmforum.org/digital-maturity-model-metrics/
 Recommended DMM Participation
▪ Again, depending upon who your
DMM sponsor is, we’d like to suggest
3 levels of participation:
 Full (5% or more of employees
completing all 5 dimensions): with the
backing of the CEO or possibly a CXO
 Medium (1% or more of employees
completing at least 3 dimensions): with
the backing of the CEO, a CXO and
possibly the CIO
 Light (50+ employees completing at
least 3 dimensions): backing of the CIO
and / or someone at a divisional level
Recommended DMM Communication Process
▪ To get the ball rolling, the DMM has to be
introduced by the sponsor, CEO, CXO, CIO or
other, to the immediate stakeholders.
▪ Email is likely the best way to introduce this to
everyone, but it should reference either an
upcoming face to face meeting(s) or webinar(s)
where more information will be provided.
▪ The initial face to face meeting(s), or webinar(s),
should last at least 1.5 hours and prepare people
for how to complete the survey as well as who to
seek help from if questions arise.
▪ Survey should open to stakeholders within a
week after the last meeting / webinar.
Module 8: Preparing For and Taking the DMM
Survey – Part II
 Taking the Survey
▪ So now that the participating
employees from your organization
have been prepped to take the
DMM assessment, its time to get
started with the survey.
▪ People currently have two
choices for how they can
approach this:
 DMM web accessible app at the
following URL:
https://dmm.tmforum.org
 Downloading the iOS app,
https://itunes.apple.com/gb/app/di
gital-maturity-
model/id1233670771?mt=8
 Taking the Survey – Landing Screen

▪ Landing Screen:

 Welcomes people to the

DMM and offers them
guidance on what to
expect from participating
in the assessment.
 The launching point to
“Take Survey” which starts
someone on the
assessment.
Taking the Survey – Dashboard
▪ Dashboard:

 Arrive here after

clicking “Take Survey”.
 Survey Completion
Status tracks your
progress in completing
the survey.
 Partial screen capture
as it doesn’t show all 5
dimensions, it’s just
showing Customer and
Strategy.
 Taking the Survey – Dashboard (cont.)
▪ Dashboard (cont.):
 Shows the remaining
dimensions, Technology,
Operations and Culture.
 If you’ve been assigned all
5 dimensions, easiest to
start with Customer in the
upper left hand corner.
 If you have been assigned
< 5 dimensions, just start
with the one closest to the
top of the page and work
through them in order.
Taking the Survey – Dimension > Sub Dimension
▪ Taking the Survey:

 Each person taking the survey

has the ability to select whether
they are responsible for a
particular sub dimension or not.
 Each criteria / question has 3
parts:
• Importance
• As Is Capability
• To Be Capability
Recommended DMM Processes - Review
▪ DMM Sponsor

▪ How to Use the DMM Model

▪ Participation Level
▪ Communication
▪ Determining Which Format
(Web or iOS)

▪ Getting Your Credentials and

Logging In

▪ Taking the Survey & Status