77 building blocks of digital transformation: the digital capability model

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Management capabilities are the technical foundations on which the front-
office, middle-office and back-office capabilities are built.
Digital Alignment is a set of capabilities used to develop and execute digital
plans that are aligned to corporate and business unit strategies. Digital
capabilities are developed based on the digital plans and maintained through
the Digital Development & Operations capability. These two mega

capabilities are discussed at the end of the Digital Capability Model.
In the final part of this book, the digital capability planning methodology is
introduced. This brief methodology can be employed to make the best use of
the Digital Capability Model when digital plans need to be established to
improve digital capabilities.
Machine Learning is mentioned a few times in this book, but not established
as a standalone capability of The Digital Capability Model for a reason.
Machine Learning-based AI is instead discussed briefly in the epilogue.
A Mega Capability and a Capability
Every mega capability in the Digital Capability Model has its constituent
capabilities. In this book, a mega capability is introduced first and its
constituent capabilities are subsequently explained.
When a capability is introduced, the definition of the capability is described,
followed by the maturity levels and examples of indicators of the capability
levels. The definition of a capability also includes key concepts that
complement the definition and assist with determining the maturity level of
the capability.
Maturity Levels of a Capability
While a capability of the Digital Capability Model can be assessed in terms
of its level of maturity, a maturity level of a mega capability is calculated by
combining the maturity levels of the capabilities that belong to the mega
The results of the assessment of the maturity levels are used to establish a
digital strategy and plans to improve overall levels of digital capabilities of an
organization. This will be discussed further in a later part of this book.
Below are the overall definitions and indicators of a maturity level of each
digital capability, and capability-specific indicators of a maturity level are
described in the following chapters. Please note that the maturity indicator
examples included in this book should be considered ‘signs’ of the maturity
level rather than absolute criteria, as every organization has unique digital
operations that cannot be generalized.

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