Top 5 digital transformation frameworks in 2020 (2022)

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Top 5 digital transformation frameworks in 2020

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Reviewed: The top 5 digital transformation frameworks in 2020

We review 👍👎 digital transformation frameworks from the world’s top digital transformation consulting companies. PwC, McKinsey, Accenture, EY, Gartner, CapGemini, MIT, Cognizant, Altimeter, Ionology.

In this article, we provide you a directory listing of digital transformation frameworks and what makes each framework🌟🌟🌟 special. We will evaluate each framework based on its own merits in a moment. However, to get started, we have a few general comments about what makes one framework better than another.

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Top 5 digital transformation frameworks in 2020 (1)

What are hallmarks of a top digital transformation framework?

Digital transformation frameworks, like any kind of framework, give decision-makers a starting point. Frameworks offer checklists of what needs to get done, and sequence to order what needs doing. However, frameworks shouldn’t be prescriptive. Instead, the authors of the framework should invite the user to hack and mod their DX framework, to suit circumstances.

Digital transformation frameworks show people at different levels of the organization how to cooperate 👏 to make digital change possible.

see the big picture, ideal for executives

drill-down to a set of tasks and sequences

transform front and back-of-office

customize to suit circumstance

HOW WE REVIEWED EACH FRAMEWORK

Each review is based on what is published in the public domain. While most authors gave some explanation, there was little published in the way of how to apply the framework. Therefore, our reviews are first impressions at best. A personal demonstration of each framework by the author would reveal more detail and give a more accurate review.

We have based our reviews upon these four dimensions. We believe a DX framework should allow you to:

customer-centricity

opportunity and constraints

company culture

simplicity

We valued customer-centric. We believe the customer must be the reason for digital change. We value opportunities and constraints. Many frameworks address opportunity, however organizations big and small face constraints. We value company culture.

Lastly, we value simplicity. We appreciate a personal demonstration would improve the reviews of each framework. However, the framework should be simple to apply.

(Video) 5 Most Important Elements of Digital Transformation

FRAMEWORKS WHICH DIDN'T MAKE TOP 5

Accenture’s digital business strategy framework seems to have the right ingredients. Information, applications, operations, and platforms are placed at the bottom where you would expect to find them. Accenture places vision at the top. Vision or beliefs are key to addressing the culture of the organization.

Criticism: where do I start? It didn’t seem intuitive.

KPMG has identified six dimensions of i4.0, as part of its DX framework. At a glance, it looks solid. One of the pieces of the framework offers a digital smorgasbord which was a little worrying. There was no mention of customers which frightened me.

Overall KPMG doesn’t seem to bring anything new to the table, except perhaps a better visualize transformation compared to others.

A few frameworks we’d like to review, but were not able to, due to lack of information. Altimeter, Ionology, Deloitte and EY all offer digital transformation frameworks, which I am sure, if demonstrated personally, could be reviewed.

TOP 5 DIGITAL TRANSFORMATION FRAMEWORKS

We scored frameworks against each value and came up with a total score out of five. A high score is five. A low score is one. Tied equally in the first place are MIT, CapGemini, and DXC with respective scores of 3.5 out of 5.

It is hard to beat either of these three frameworks. All three scored 3.5 overall and also scored 5/5 for customer-centricity. Sources claim MIT and CapGemini were responsible for writing the first digital transformation framework. CapGemini had a rock-solid approach to company culture and MIT’s simplicity of six building blocks was hard to beat.

DXC Technologies is the new kid on the block. The digital native underdog stands to challenge the status quo.

The second position was taken by McKinsey’s work of art called the 4Ds. The 4Ds ranked high for customer-centricity. In third place is Gartner with its digital transformation framework. Overall Gartner’s digital transformation ranked highest for company culture.

Let’s begin with fifth place and work our way to the top of the leaderboard.

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5. PwC digital transformation framework

PwC tells us digital change should be rooted in “Industry 4.0”. Industry 4.0 refers to the fourth industrial revolution.

The outer ring labeled data and analytics is clever. This framework will provide more accurate intel for business leaders to make decisions in stages 1-3.

Digitisation of product and service offerings (stage 2) is clear. CapGemini’s DX framework encourages organizations to go beyond digital wrapping traditional products, and instead build new products that are digitally native.

The framework places Industry v4.0 at the heart of digital change. Shouldn’t the customer be here?

The DX framework names types of technology — smart sensors and 3D printing. Naming technology creates a few problems. The framework dates quickly. Technology changes and technology today is redundant tomorrow.

It can create a digital smorgasbord. Business leaders are encouraged to pick what looks tasty and add it to their plate. This kind of thinking is why organizations deploy digital kiosks unnecessarily. Steve Jobs said:

you need to think about customer experience and work backward to the technology.

The framework does not reference company culture. It recognizes opportunities but what about organizational constraints?

4. Cognizant digital transformation framework

Cognizant has found four common elements that apply to most companies making digital change in both the B2C and B2B markets.

Where PwC’s digital transformation model made a vague reference to a customer, Cognizant has an entire piece devoted to digitizing the customer experience. This piece includes customer insights, an aspect covered by MIT’s five building blocks to digital transformation.

In making digital change, Cognizant’s DX framework recognizes new pricing models are important. The framework is relatively easy-to-use.

(Video) Digital Transformation Framework

Unfortunately, I had mostly criticism for this framework. Parked under ‘customer’ is digital marketing. Digital marketing is not strictly speaking part of digital transformation, nor does it necessarily help customers. Most customers will tell you, they hate advertising.

I was surprised the digitization of the organization did not include a piece on culture.

The framework mentions tapping into partner ecosystems. This business concept was relevant 30 years ago. It is common sense.

3. Gartner digital transformation framework

Gartner wrote a six-step digital transformation framework, enabling CIOs and other business leaders to build a successful digital enterprise.

Gartner, like Accenture, put shared beliefs first. They call stage one of their DX framework ‘shared understanding’.

Step 2 of the Gartner digital transformation framework suggests putting in place the right leadership. This decision is backed by research that suggests skill gaps are one reason why digital change fails.

Shared understanding or shared belief is essential. Technology transformation is useless unless people transform. The staff needs to understand and share the same belief as the CEO about why digital change makes sense. It is inside-out.

Step 3 is powerful. While other DX frameworks touch on shared beliefs and culture, Gartner goes further suggesting the organization be supported by a digital excellence team. Think of these people as coaches and mentors.

Gartner’s DX framework does not appear to address the customer, to the degree that McKinsey’s framework does. While it’s prudent to address leadership before making change, this concept has been around a long time and is broader.

2. McKinsey digital transformation framework

McKinsey has a proprietary DX framework called the 4Ds. According to the McKinsey framework, the 4D’s of digital transformation are Discovery, Design, Deliver, and De-risk.

McKinsey 4Ds are on fire. It is the first DX framework I have reviewed where the customer is first, again and again. McKinsey put the customer first in the Discovery phase — looking at customer behavior trends.

In the second phase — Design — the customer gets another hug. This time McKinsey talks specifically about designing and building customer journeys. Customer journeys are an important driver of customer experience. Customer journeys form one of the blocks in McKinsey’s six building blocks for creating a high performing digital enterprise. DXC’s DX framework uses customer journeys to identify new opportunities.

The last phase encourages the organization to reinvest profits made from quick wins to de-risk the business against change fatigue. This scenario is highly likely and I have personally used this approach to help businesses. PwC encourages organizations to create a budget for a pilot project and then scale up funding.

McKinsey’s model expects an enterprise organization to behave like a startup. A startup and enterprise organization are diametrically opposed. More on this subject at the end of the review.

1. CapGemini digital transformation framework

CapGemini’s DX framework digitally transforms three key areas of an enterprise: customer experience, operational processes, and business models. Within each of the three pillars, different elements are changing. These nine elements form a set of building blocks for digital transformation.

I think CapGemini’s digital transformation framework rocks. It is one of the better ones. While you may not like the font and the monochromatic color palette, you have got to love their three stages.

Stage one customer experience. This is about understanding the customer and thinking about new kinds of customer journeys – precisely the ingredients prescribed by McKinsey.

I think CapGemini has got the right sequence which will lead to what McKinsey calls quick wins. Start with the customer experience and move to greater issues of complexity.

Like Accenture, CapGemini places digital technology at the bottom suggesting it supports rather than leads. If we cast stage 1 as front-of-office, then stage two is back-of-office. This is the operational changes required to deliver the value propositions. CapGemini DX framework is not the only framework that addresses value propositions. Value propositions get a mention in EYs framework. MIT’s DX framework calls value propositions ‘offers’.

(Video) THE DIGITAL TRANSFORMATION (The Role of Adaptable Digital Transformation Framework)

The fonts and color? Seriously, there is a lot of 7-point type and the application of ‘what’ and ‘how’ is not obvious.

1. MIT digital transformation framework

MITs framework was easy to review thanks to the anecdotal information provided by Jeanne Ross. The DX frameworks we addressed in this review are akin to a flow chart. MIT’s five building blocks to digital transformation framework is more like a stack of building blocks.

There is a lot of emphasis on customers. Like PwCs data and analytics core competency ring, MIT points organizations to develop a reservoir of intelligence 🤔 about both customer problems and solutions.

The accountability block tries to break down organizational barriers as a means of transforming. Create a startup culture where it is possible to make mistakes and still succeed.

I liked this sentence from Ross:

Companies need to adopt a new framework of accountability organized around components rather than functions, product lines, or geographies.

This is about aligning the entire business around the customer.

MIT’s five building blocks to digital transformation framework begins with operations, not customers. One block is devoted to what is called the external developer platform. The external developer platform is a marketplace. The idea of not building everything and sourcing externally is not a new idea. Business advisors since the 1970s have been telling business leaders to focus on core competencies.

1. DXC Technology digital transformation framework

In the digital world according to DXC, the consumer is in charge and will define your next move. Asymmetric competition from unexpected sources will be the norm. Winners maintain control while they minimize their asset base.

Like MIT and CapGemini, DXC’s digital transformation framework puts customers first.

DXC really knows how to put the customer first. Their Digital Customer Experience piece is comprehensive. Like CapGemini and McKinsey, they touch upon customer journeys and take it one step further.

DXC claims these journeys need to be ‘intelligent’, ‘digital-first’ and ‘omni-channel’. Their Business Model Innovation is very cool. It helps anticipate asymmetric competition. Asymmetric competition is stuff like how Apple could start by offering Apple Pay, and then launch a digital bank.

Like MIT and Cognizant, this DX framework gives basic business advice. Keep what you manage to a minimum. Focus on core competency and outsource what you can. This is common sense and distracts us from what is important.

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Closing remarks

Many of the frameworks we uncovered are steeped in years of academic research. Frameworks developed by PwC, McKinseys and Ionology alike. However, be warned. Other DX frameworks are akin to the thinking of a three-year-old. Seriously, these frameworks are appalling. They are generic project management workflows, that you and I could apply to home gardening. Or building the kid’s cubby house. Or installing a new toilet (flush now).

While digital transformation frameworks from MIT, CapGemini, and DXC Technologies stand out, you won’t be taking these frameworks 😂 home. There are no user guides in the public domain, so you will have to become a paying customer first.

Even with the help of consultants and a few hundred thousand dollars, don’t expect to roll out these 👎 frameworks quickly. They are not simple and require a lot of customization.

I would like to offer an alternative digital transformation framework called the 4Qs.

Between late 2019 to mid-2020, we conducted over 100 interviews with digital transformation consultants. During each interview, the consultants were shown how to apply the 4Qs to digital transformation and asked to a complete survey.

Here are some of the 👍 results of the survey.

65% said they would implement the 4Qs in their business

65% reported the 4Qs framework easy to use

50% believe the 4Qs would improve sales by 20-30%

(Video) The RIGHT WAY to successful digital transformation strategy (a PROVEN framework from the REAL WORLD)
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FAQs

What are the 5 domains of digital transformation? ›

Customers, Competition, Data, Innovation, Value.

What is the latest digital transformation? ›

7 Digital-Transformation Trends to Watch
  • Blockchain. Blockchain has been around for years and is already used in different industries outside finance industries. ...
  • Data protection and security. ...
  • Hybrid workplace. ...
  • Artificial Intelligence (AI) ...
  • Automation. ...
  • 5G. ...
  • Digital banking.
8 Apr 2022

What is framework for digital transformation? ›

A digital transformation framework is the blueprint for how an organisation moves through a period of significant change because of the current evolving business conditions. The framework is a tool, used across an organisation, that guides all levels of the organisation through the journey.

What is digital transformation examples? ›

Some digital transformation examples include implementing tangible, customer-centric digital tools like mobile applications or websites that improve the customer journey. And others involve machine learning algorithms that transform a traditional business into a digital business.

What are the five domains of DX for each How do digital technologies transform the business model and business process es? ›

He stated five vital domains of digital transformation plan which is: customer, competition, data, innovation, and value. Even though these essentials are well-defined, the transformation isn't simple.

What are the key trends in digital transformation in 2022? ›

Distributed cloud will be an emerging digital transformation trend in 2022 as more and more businesses move to the cloud. The distributed cloud gives businesses the power to connect data and applications across multiple locations, allowing for faster innovation and better resiliency.

What are the 3 approaches of digital transformation? ›

Types of Digital Transformation
  • Process Transformation. Companies can revise internal processes to lower costs, improve quality and reduce cycle times. ...
  • Business Model Transformation. ...
  • Domain Transformation. ...
  • Cultural/Organizational Transformation.
20 Jan 2022

What are the top 5 digital transformation trends? ›

The new trends in digital transformation include hybrid work, intelligent search, AIOps and machine learning, customer data platforms (CDPs), and integrated Agile, DevOps, and ITSM platforms.

Why is McKinsey digital transformation? ›

From building new digital businesses and helping organizations to modernize their technology, to transforming companies through data, analytics, and artificial intelligence, McKinsey Digital “delivers high-value end-to-end business transformation” and is “a good fit for companies seeking world-class strategy, ...

Why is a digital transformation framework important? ›

Digital transformation frameworks are essential for today's businesses because it provides a strategy to help companies survive disruption by adapting to current technologies. Disruption refers to the rise of external developments that risk changing the way industries work.

What is digital business framework? ›

The SAP “Digital Business Framework” is based on a unified, intelligent data platform. It provides an expandable foundation that business innovation can build on. Its “Digital Core” is a hub that links various applications, systems, and business processes.

What is a digital transformation roadmap? ›

A Digital Transformation Roadmap is a set of steps that organizations can follow to achieve short-term and long-term business goals with the use of digital technology. The roadmap begins by understanding business needs and finding gaps in the existing system to build a strategy that avoids these gaps.

What is the best example of digital transformation? ›

A great example of digital transformation is UPS. The American shipping and supply chain management company used digital tools to synchronize its operations and logistics strategy to better meet customer demand.

How did Pfizer plan to transform digitally? ›

In 2019, Pfizer embarked on a digital transformation—leveraging new ways of working and harnessing novel digital, data, and technology solutions to enhance every aspect of our business from speeding up the discovery and development of medicines and vaccines to how we enhance patient and customer experiences to improve ...

What is B2B digital transformation? ›

B2B digital transformations are unique from B2C transformations because they often include reorganizing the selling channels. Instead of going through middle-men, some B2B companies choose to restructure to sell directly to the customer through e-commerce channels.

What is digital transformation Gartner? ›

Digital transformation can refer to anything from IT modernization (for example, cloud computing), to digital optimization, to the invention of new digital business models. The term is widely used in public-sector organizations to refer to modest initiatives such as putting services online or legacy modernization.

What are the five elements of digital information technologies? ›

5 Components of Information Systems
  • Computer hardware. This is the physical technology that works with information. ...
  • Computer software. The hardware needs to know what to do, and that is the role of software. ...
  • Telecommunications. ...
  • Databases and data warehouses. ...
  • Human resources and procedures.

Why do digital transformations fail Gartner? ›

According to Gartner, “Through 2025, 80% of organizations seeking to scale digital business will fail because they do not take a modern approach to data and analytics governance.”* While the global health crisis has certainly accelerated organizations' focus on digital transformation, many continue to face roadblocks ...

What is the future of digital? ›

The future of Digital Transformation consists of some crucial aspects. The access to remote operations is expected to be enhanced. The concept of employee well being is expected to become an organisational priority. Digital twin computing capacity may enable predictive analytics.

What are the digital pillars in digital strategy framework? ›

The framework outlines the four pillars of digital transformation we see today: IT uplift, digitizing operations, digital marketing, and digital businesses. All four are part of most companies digital transformation journey.

What are 6 pillars of smart operations? ›

The six pillars of digital transformation are experiences, people, change, innovation, leadership, and culture. Let's take a look at each pillar and to understand the backbone of the digital transformation.

What is the key to successful digital transformation? ›

The GetSmarter survey finds that the two most crucial ingredients for digital transformation success are strong leadership and effective change management. Collectively, they ensure that all the employees are inspired, motivated, and aligned to their business's plan for digital transformation.

What are the 4 types of digital business models? ›

Different kinds of digital business models
  • Free-Model (Ad-supported Model) ...
  • Freemium Model. ...
  • On-Demand Model. ...
  • E-Commerce Model. ...
  • Marketplace Model (Peer-to-peer, two-sided marketplace) ...
  • Ecosystem Model. ...
  • Access-Over-Ownership Model / Sharing Model. ...
  • Experience Model.
20 Apr 2021

Is ERP digital transformation? ›

ERP is essentially the platform on which the digital transformation initiative is launched. Digital transformation is reimagining the human experience. It is remaking how people live, work, play, and connect.

What is the difference between digitalization and digital transformation? ›

Digitalisation is what happens when you apply technology to improve a process that was otherwise done manually. In essence digital transformation is actually a business transformation.

What are the stages of digital transformation? ›

The Six Stages of Digital Transformation
  • Business as Usual.
  • Present and Active.
  • Formalized.
  • Strategic.
  • Converged.
  • Innovative and Adaptive.

What are the different types of digital transformation? ›

There are four different types of digital transformation, including process transformation, business model transformation, domain transformation, and cultural/organizational transformation.

What are the steps to digital transformation? ›

How can I get started on digital transformation?
  1. Step 1: Determine the meaning of digital transformation to your organization. ...
  2. Step 2: Assess your current capabilities. ...
  3. Step 3: Get the right buy-in. ...
  4. Step 4: Create a digital transformation strategy. ...
  5. Step 5: Ensure you have the right skills in place.
18 May 2022

What are the six pillars of smart operations? ›

The six pillars of digital transformation are experiences, people, change, innovation, leadership, and culture. Let's take a look at each pillar and to understand the backbone of the digital transformation.

What is a digital transformation roadmap? ›

A Digital Transformation Roadmap is a set of steps that organizations can follow to achieve short-term and long-term business goals with the use of digital technology. The roadmap begins by understanding business needs and finding gaps in the existing system to build a strategy that avoids these gaps.

Why is McKinsey digital transformation? ›

From building new digital businesses and helping organizations to modernize their technology, to transforming companies through data, analytics, and artificial intelligence, McKinsey Digital “delivers high-value end-to-end business transformation” and is “a good fit for companies seeking world-class strategy, ...

What is the most important phase in digital transformation? ›

The most important moment in a digital transformation is at the very start, where decision making is nimble and it's easiest to affect valuable change.

How many stages are there in digital strategy? ›

Four Stages of Competence in Digital Strategy.

What makes a transformation successful? ›

Transformation is not about short-term cures, but long-term healing. Without ignoring short-term challenges, a successful transformation anticipates how to clear bigger-picture barriers and hurdles, how to achieve solutions that build sustainable advantage, while building momentum from the outset.

What are the 4 types of digital business models? ›

Different kinds of digital business models
  • Free-Model (Ad-supported Model) ...
  • Freemium Model. ...
  • On-Demand Model. ...
  • E-Commerce Model. ...
  • Marketplace Model (Peer-to-peer, two-sided marketplace) ...
  • Ecosystem Model. ...
  • Access-Over-Ownership Model / Sharing Model. ...
  • Experience Model.
20 Apr 2021

Is ERP digital transformation? ›

ERP is essentially the platform on which the digital transformation initiative is launched. Digital transformation is reimagining the human experience. It is remaking how people live, work, play, and connect.

What is B2B digital transformation? ›

B2B digital transformations are unique from B2C transformations because they often include reorganizing the selling channels. Instead of going through middle-men, some B2B companies choose to restructure to sell directly to the customer through e-commerce channels.

Videos

1. Top 5 BPM Trends That Will Impact Your Digital Transformation!
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2. Digital Transformation Overview & Framework
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3. The Context for a Digital Transformation Framework | McKinsey & Company
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4. Digital Transformation Framework
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5. What is Digital Transformation? Here is everything you need to know.
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6. 4 REASONS I SOLD EVERYTHING ?!?!?!?! (not about the market!)
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