Converting capabilities into performance

Organizational view of Digital Transformation takes into account the goals and objectives of the organization and adapts technology accordingly. The Instrumental Purpose of Digital Transformation for an organization is search and development of high performance digital capabilities (refer What is a digital capability?). The digital capabilities desirable for any organization differs as per the industry the organization operates in or need dependent.

Following in the journey a typical organization undergoes during Digital Transformation:

Digital Capability (from lower order to higher order) --> Organization Capability --> Performance.

This journey depends on two factors

First is the ability of organization to execute hierarchy of capabilities. However, the requirement of executing this hierarchy of capabilities depends on the environmental complexity the organization operates in. Organizations operating in more complex environments require higher knowledge management capability (realized operational absorptive capacity or ROAC).

Second is the Integrated Information Technology Systems (IS Design). Research states that organizations whose business-IT alignment was better could convert their IS capability into operational capabilities much better.

PS: These are my notes from the Advanced Digital Transformation Specialization