Study Shows That 7 Out of 10 People Are At The Lowest Level of Digital Maturity
A recent study by Bridges Consultancy has revealed that 7-out-of-10 people are still at the lowest level of digital maturity, a factor that explains why two-thirds of digital transformations are failing.The Digital Maturity Index Report 2022, an analytical report which identifies an individual’s digital maturity, has shown that the majority of respondents are still coming to terms with understanding digital technologies and methodologies, with 71 percent scoring at the lowest level of the Digital Maturity Index (DMI).
Singapore, 9th Dec 2022 – A recent study by Bridges Consultancy has revealed that 7-out-of-10 people are still at the lowest level of digital maturity, a factor that explains why two-thirds of digital transformations are failing.
The Digital Maturity Index Report 2022, an analytical report which identifies an individual’s digital maturity, has shown that the majority of respondents are still coming to terms with understanding digital technologies and methodologies, with 71 percent scoring at the lowest level of the Digital Maturity Index (DMI).
The DMI captures an individual’s (not organization’s) current level of readiness to take advantage of opportunities and create value through digital. The index rates respondents at one of three levels: Reacting (basic), Embedding (intermediate) and Strategizing (advanced).
As one of the world’s few indexes that measure an individual’s digital maturity, the DMI offers a reliable starting point for identifying individual digital gaps. To ensure reliability, the team utilised the Cronbach’s Alpha scale to test for internal consistency and received a strong score of .94. The DMI also had a test-retest reliability coefficient of .93, further indicating the instrument’s excellent reliability.
What the DMI revealed most significantly is that the majority of respondents are at the ‘Reacting’ level, which is the most basic level of digital maturity. At this level, individuals may still be learning the vocabulary, technologies, and methodologies pertinent to digital transformation.
This implies that people increasingly have the knowledge but not the skills for digital transformation and are not yet prepared to implement the digital technologies and methodologies needed in business today, a fact that could have a critical impact on how those businesses perform.
Asides from measuring what individuals know about digital transformation, the DMI also measures what they are capable of doing. The report revealed that most respondents are most capable with smartphone apps, showing an ability to effectively utilise dashboards, create digital visualisations and employ design thinking.
At the other end of the spectrum, the skill with the lowest score was digital nudging, which is an approach that uses digital means to encourage behavioural change. According to the results of the DMI, 52.2 percent of respondents showed a limited understanding while only 2.6 percent showed advanced knowledge.
“People are getting better at picking up the necessary knowledge, but they haven’t yet acquired the applied skills they need to unlock that knowledge and properly implement it,” states Professor Michael Netzley, Co-Author of the DMI Report 2022. “Individuals are struggling to move from acquiring the knowledge to actually embedding it into practice.”
This significant gap between knowledge and implementation is one of the most critical factors revealed by the DMI results and is referred to in the report as the ‘Digital Knowing-Doing Gap’. This gap indicates that individuals, and as a result, organizations, will continue struggling to move from adapting to embedding digital transformation unless they acquire the skills that will allow them to unleash the full value of their knowledge.
“One of the main reasons behind creating the DMI was to allow individuals to prudently plan a path forward, identify their development needs and take the necessary actions to improve their digital maturity,” says Robin Speculand, Co-Author of the DMI Report 2022. “Going through the DMI will allow them to measure and analyse their results, identify what actions need to be taken and then develop a plan that plots a course towards a successful implementation.”
By completing the Digital Maturity Index and establishing a baseline, individuals can now make informed decisions to map a path forward, identifying their development needs and taking the appropriate actions to improve their digital maturity.
About the Digital Maturity Index Report 2022
The Digital Maturity Index Report 2022 study sampled 1,463 individuals who completed the DMI. Respondents are mostly based in Asia Pacific. In addition:
- The sample reflects multiple industries including semiconductors, insurance, finance, environmental technologies, and healthcare.
- It reflects a range of organizational levels, mainly individual contributors, people managers and enterprise leaders, with ages ranging from 18 to 65.
- The database includes respondents from executive development programs as well as corporate and university programs.
About Professor Michael Netzley, Ph.D. (University of Minnesota)
Michael is the founder and CEO of Extend My Runway Pte Ltd (EMR), an AI-for-good start-up that nudges you toward better brain health and cognitive performance. He also serves as Affiliated Faculty and Executive Coach with IMD Business School in Singapore and previously spent 15 years on the faculty of Singapore Management University. Michael has consulted with EY’s People Advisory Services and Heidrick Leadership and in his various roles, Michael has enabled the learning journey of more than 15,000 executives. His work has been featured in the New York Times, MIT’s Technology Review, Dialogue Review, Channel News Asia, and Straits Times. A resident of Singapore, Michael is pursuing a second master’s degree in Applied Neuroscience from King’s College, London.
About Robin Speculand
Robin is a recognized pioneer and expert in strategy and digital implementation. He is driven to transform strategy implementation by inspiring global leaders to adopt a different mindset and approach. The founder of three companies, Robin is CEO of Bridges Business Consultancy Int and co-founder of the Strategy Implementation Institute and Digital Leadership Specialists. A TEDx presenter and Thinkers50 nominee, he is a facilitator for IMD, Duke CE, and SMU, and part of the Top 30 Global Gurus. As a best-selling author, he has written six books including his most recent, World’s Best Bank: A Strategic Guide to Digital Transformation, and Strategy Implementation Playbook: A Step-By-Step Guide
 Cronbach’s Alpha is a measure of internal consistency and is considered to be a measure of scale reliability – UCLA Advanced Research Computing
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