Digitally mature companies are achieving breakthrough performance. Is your company keeping pace? BCG’s Digital Acceleration Index helps companies assess their digital maturity, build a foundation for their digital transformation, and embark on the journey to become bionic.
Digital maturity—a measure of an organization’s ability to create value through digital—is a key predictor of success for companies launching a digital transformation. Businesses with high levels of digital maturity have a competitive advantage along multiple performance indicators, including revenue growth, time to market, cost efficiency, product quality, and customer satisfaction. Businesses with low levels of digital maturity struggle to achieve these benefits. Given digital’s continued contribution to company performance, the gap between digital leaders and laggards will likely grow.
BCG’s Digital Acceleration Index (DAI) is a powerful diagnostic tool that lets companies conduct a digital capability assessment and compare their digital performance with peers, the industry average, best-in-class digital leaders, and everyone in between. It also assesses their readiness to become a bionic company—that is, to blend new technologies with human capabilities to power growth, innovation, efficiency, and resilience.
Companies leverage DAI in two ways:
At the beginning of a digital transformation, companies use DAI to benchmark their digital maturity in 36 categories, such as customer journeys, digital supply chain, and marketing personalization. This early benchmarking becomes exponentially more valuable over the course of a digital transformation as companies track digital growth to identify where they’re gaining traction and where they’re falling behind.
Companies also use DAI, in combination with deep-dive assessments, to benchmark their broad capabilities, such as new digital growth, go-to-market capabilities, and future-ready tech functions. By focusing on the capabilities that boost digital maturity, companies can improve competitive advantage along multiple performance indicators, such as time to market, cost efficiency, product quality, and customer satisfaction.
The DAI database includes digital maturity data from more than 8,000 companies. It delivers the data leaders need to define a unique and achievable digital ambition, develop an integrated digital strategy roadmap, and build a reliable foundation from which to launch their digital transformation.
The scope of DAI is unparalleled. BCG’s digital maturity framework has already been used by top-level executives and digital experts across all industries and geographies. In addition to companies, governments have used it to assess their entire economies in order to prioritize sector programs and develop digital centers of excellence.
BCG also offers a DAI app that lets companies instantly access data, track progress in real time, and visualize clear correlations between digital maturity and financial outcomes. The data is continuously refreshed, and more than 50% of the data points are younger than 18 months.
Digital champions are expanding their lead by investing in technology and IT, building their talent base, and pushing digital projects to scale.
BCG surveyed 1,800 companies in Europe, Asia, and the US to evaluate their digital maturity across more than 35 dimensions of digital transformation.
Although the performance gap is widening between digital champions and laggards, companies can take steps to boost their digital maturity. BCG’s Digital Acceleration Index allows companies to up their digital game in the most efficient way possible.
BCG’s Digital Acceleration Index helps private equity firms evaluate their portfolio companies’ digital maturity and launch the right digital initiatives to boost companies’ value creation.
See which industries have a digital performance edge—and which don’t—in this infographic.
Digitization is creating a divide in the corporate landscape worldwide. Digital laggards face a profound threat unless they close the gap with digital champions.
Digital champions outperform laggards by boosting performance in three key ways: they invest at least 5% of operating expenses in digital, assign more than 10% of the workforce to digital roles, and embed digital capabilities in the business.