Managing the Company's Digital Capability: A Case for Operational Excellence

Abstract

The framework for assessing the company's digital capability includes six key areas that can be individually evaluated to consider the overall maturity of a company's digital capability. According to this framework key areas are innovation capability, transformation capability and IT excellence as digital transformation enablers and customer centricity, effective knowledge worker and operational excellence as digital transformation goals. The focus of this research is the area of operational excellence. The purpose of the paper is to assess how the manufacturing company manages the digital transformation of the operational excellence. In the paper, the digital capability maturity model (DCMM) and its corresponding business transformation management methodology (BTM²) are used for this assessment. The BTM2 includes nine management disciplines and each of them is individually evaluated for the case of the operational excellence. These are the following disciplines: strategy management, value management, risk management, business process management, IT management, change management, training management, project management and meta management. According to the obtained assessment results the maturity of management disciplines for the case of operational excellence within the examined company is mostly reactive (maturity level 2). In order to improve the digital transformation of the company's operational excellence, it is necessary to define digital use cases based on the new technologies and map them to the existing maturity model of operational excellence of the company. It is necessary to consider the requirements of stakeholders regarding the benefits and risks of new digital technologies to improve the operational excellence of the company. Accordingly, the company should to define a new strategic plan and align it with the new IT strategy. For this purpose, COBIT 5 framework is used in the paper. The contribution of this research is in the proposed and described three-step approach to managing the operational excellence of companies and improving the level of digital capabilities of companies.