Charting Digital Evolution- Identifying Areas for Advancement in Organizational Digital Maturity
The digital maturity phenomenon has emerged along with the emergence of the digital economy and industry. The phenomenon refers to integrating an organization’s human capital and operations into digital processes. Businesses are increasingly applying modern technologies in their operations to achieve internal goals and bolster efficiency. Digital maturity, like digital transformation, is gaining popularity among modern organizations like Amazon. Notably, there is a positive correlation between digital maturity and the application of AI. AI adoption helps businesses collect data and leverage the data in decision-making.
Analysis
Core Areas to Advance Digital Maturity for Amazon
One of the business areas Amazon can leverage to advance digital maturity is operations. A digitally mature organization should apply analytic tools and automation to improve operations. For instance, a logistics company can leverage machine learning with the objective of optimizing delivery routes and order processing times (Grover & Damle, 2020). Amazon will achieve business efficiency once it adopts these measures.
Customer service is the other critical area of digital maturity for a digital retailer like Amazon. Customer services focus on creating customized customer experiences, building trust, enhancing customer satisfaction, customer engagement, and customer behavior analysis (Grover & Damle, 2020). Establishing customer loyalty by improving customer experiences will make customers see the organization as their digital accomplice and do more business.
Further, technology and innovation are the other components of digital maturity that will go a long way to improve Amazon’s business efficiency. A digitally mature organization should foster a culture of experimentation and innovation on new business models (Grover & Damle, 2020). The end goal is to adopt models that meet customer needs at minimal expenses. Some of the sub-dimensions in this area may include data and analytics, network security, and applications, among others.
Steps Amazon may take to Improve Digital Maturity
The first step that Amazon may implement to advance digital maturity is creating a one-stop shop. A one-stop shop is achievable by leveraging customer data to create a customized shopping experience tailored for specific customers. Also, improving technology and innovation to create a diverse customer experience amounts to digital maturity. Customers may shop for their vintage record player, food supplies, and books through a single order with diversification.
Additionally, the company may use artificial intelligence and machine learning to improve operations. AI leverages previous customer data to predict future shopping trends (Cognizant Reports, 2019). Consequently, Amazon should use AI’s predictive modeling to predict future customer shopping trends. The company will then stock the necessary supplies to avoid shortages or delayed orders. For instance, using AI, Amazon may predict how many iPhones will likely be ordered in Africa through the platform and make them available in their stores to facilitate quick delivery.
Benefits and Challenges Associated with Progressing along the Digital Maturity Curve
The benefits associated with progressing along the digital maturity curve include operational efficiency. Once a firm automates and integrates operations, it leads to streamlined operations, reduced manual errors, and efficiency (Cognizant Reports, 2019). Subsequently, this will reduce the business cost and ensure faster workflow. Progressing along the digital maturity also facilitates innovation agility, helping businesses to adapt to the ever-changing business environment.
On the flip side, adopting digital maturity may also pose some challenges. One of the prominent challenges associated with digitization is internal resistance. An organization’s human capital feels that AI adoption and operations automation may replace them or alter their work roles. Also, the overwhelming upfront costs required to implement some digitization efforts may discourage firms that do not possess significant capital endowments.
Addressing Employees who are Unable to Keep Up with Changes
One of the hindrances to change adoption is the lack of rewards and incentives for adjusted functions. Empirical research shows that millennials are likely to commit to change if they feel part of an organization and are motivated in one way or another (Gupta, 2018). Incentivizing employees breeds intrinsic motivation and incentivizes them to be committed to change. Organizational leaders should also deliver a compelling adoption narrative to avoid resistance (Gupta, 2018). Clarifying the need for digital transformation alongside vision and goal-setting builds a sense of purpose among employees who cannot keep up with changes.
Conclusion
In summary, progression toward digital maturity in the digital era is inevitable; hence, organizations need to adopt digital maturity to improve efficiency. Critical digital progression areas include operations, customer experience, technology, and innovation. Notably, the progression toward digital maturity encompasses benefits and challenges. Some of the benefits include operational efficiency and innovation agility. However, the process may encounter challenges such as high upfront costs and employee resistance.
References
Cognizant Reports. (2019, October). Investing in AI: Moving Along the Digital Maturity Curve. https://www.cognizant.com/en_us/insights/documents/investing-in-ai-moving-along-the-digital-maturity-curve-codex5050.pdf
Grover, B., & Damle, M. (2020). Comparison of select digital maturity models for digital transformation dynamics. PalArch’s Journal of Archaeology of Egypt/Egyptology, 17(6), 4836-4856.
Gupta, S. (2018). Organizational Barriers to Digital Transformation (Dissertation). https://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-230615
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Question 
In Week 2, we considered the levels of digital maturity (early, developing, and maturing). Given Figure 1 in the above article, describe some of the 13 areas your organization (or an organization with which you are familiar) could use to advance its digital maturity.
Charting Digital Evolution- Identifying Areas for Advancement in Organizational Digital Maturity
In your response, be sure to answer the following:
What areas could your organization use to advance your digital maturity? (Identify at least three areas.)
What steps do you think the organization will need to take in order to advance their digital maturity in these areas?
What are some of the benefits and challenges associated with progressing along the digital maturity curve?
How should the organization address employees who are unable to keep up with the changes?
Organize your paper into sections using the following headers: