--- title: Digital Maturity Index (DMI) · VitaminaWeb description: Regularly tracking your company’s digital maturity index (DMI) is important for identifying opportunities. source: https://vitaminaweb.digital/en/blog/digital-maturity-index-dmi lang: en --- ![Digital Maturity Index (DMI)](https://vitaminaweb.digital/storage/blog/bnO4y0ARoi37SOU6ffZgW2mmPdXTmCiUE8CKhsSv.webp) After all, what is the Digital Maturity Index (DMI)? This index aims to indicate a company’s level of maturity in the digital transformation landscape. In addition, regularly tracking a company’s digital maturity index (DMI) is important for identifying opportunities and understanding the company’s position within its industry. To calculate the maturity index, I conducted extensive research into methodologies used by research groups, major consulting firms and universities. Virtually all of these studies are available for free online and are referenced in this article. To organize the way the DMI is measured, I used a well-known strategic planning tool created by professors Kaplan and Norton: the *Balanced Scorecard*. Download the [digital maturity index calculation spreadsheet](https://lp.vitaminaweb.com.br/maturidade-digital) and see where you stand. ## How was the index calculation framework organized? Five areas were defined to organize the indexes: - Culture: the extent to which a culture of innovation and digital transformation is embedded in the company. - Organization: how the organization incorporates digital and innovation initiatives into its day-to-day operations. - Technology: how prepared the technology department is to meet digital demands. - Insights: how data is measured and used. - Digital Environment: the state of the company’s digital environment, including channels, processes and tools. Based on these five areas, items were created to measure the level of applicability of each one. Each item has a specific weight, defined based on lessons learned over my 17 years of experience in digital environments and working with organizations of all sizes. ## How were the weights for calculating the DMI defined? To calculate the weights, I created an applicability scale: - 0, Completely disagree, with a multiplier of 0; - 1, Partially disagree, with a multiplier of 0.33; - 2, Partially agree, with a multiplier of 0.66; - 3, Completely agree, with a multiplier of 1; The sum of all the weights is 100 points. The digital maturity level is determined based on the percentage achieved, using the stages defined in a Boston Consulting Group (BCG) study: - 0 to 29 points, Nascent; - 30 to 65 points, Emerging; - 66 to 80 points, Connected; - 81 to 100 points, Multimoment; ## Is the digital maturity index directly linked to how much companies innovate? When we look at how companies progress through the stages of digital maturity, we see that the stronger a company’s culture of innovation, the more likely it is to find the best tools to create competitive advantages in the digital environment, boost results and connect with its consumers. One way to support the DMI is to also measure innovation using input and output metrics. Input metrics, also known as activity metrics, indicate the actions taken to develop innovative solutions, such as: - Investment in research and development; - Number of ideas generated; - Number of ideas selected from those generated; Output metrics, also known as impact metrics, show the actual results of the ideas and initiatives measured by input metrics. Examples include the following metrics suggested by Fred Santoro, AWS Head of Startups: - ISR (*Innovation Success Rate*) = Total Successful Projects / Total Projects Explored. EII (*Efficiency of Innovation Investment*) = Total Projects Explored / Total Investments - *Innovation Magnitude* = Total Gains Achieved / Total Successful Projects - NPS (*Net Promoter Score*) = Measure the satisfaction of everyone involved in the project (e.g., customers, employees, partners, suppliers, shareholders, investors) Since every company has its own context, it is recommended that you create your own indicators, as they will reflect your specific objectives and strategies. Innovation must deliver value to the company’s customers. If that is the foundation for everything you create, your company is on the right track. ## Digital Maturity Index Calculation Spreadsheet [Want to calculate your company’s Digital Maturity Index? Click here to download the spreadsheet.](https://lp.vitaminaweb.com.br/maturidade-digital) Alternatively, VitaminaWeb offers in-company training on digital trends, tailored to each company. 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