Review questions
Subject 1 Summary: From Understanding Transformation to a Target State
Subject 1 begins with a simple idea: digital transformation is not a new label for buying technology. Digitisation converts analogue information into digital form; digitalisation uses digital technology and data to change an activity or process; automation executes a defined step automatically when its rules are understood; digital transformation connects value, processes, capabilities, data, governance, and adoption in coordinated change. An automated step can therefore be useful without being transformation, and keeping a human step may be better when judgment or complex exceptions are involved.
The next move is from technology to value. Distinguish the output—what was delivered—from adoption—whether it was used—outcome—what changed in performance or experience—benefit—why that change matters—and a guardrail—what must not deteriorate. Account counts or a portal launch may be useful measures, but they do not establish that service time fell or quality improved. An observed time difference also does not automatically become “financial savings” or proof of causation. A useful value hypothesis states who should benefit, the baseline and target, the time horizon, how change will be measured, which guardrail is monitored, and which facts are still unknown.
Current-state assessment then provides the evidence base. Do not start with a maturity score and search for a story to explain it. Start with a clear question and scope, then combine evidence. Interviews reveal perceptions and possible causes; observation shows actual work; logs provide volumes and times; documents show formal rules; samples test data and output quality. Practical dimensions may include strategy and value, process and stakeholders, data, technology and integration, people and capabilities, governance and decision rights, and risk and resilience. If a rating is used, it summarizes defined criteria and evidence; it is not a general percentage of maturity. Where evidence is insufficient, “undetermined” is more truthful than an invented number.
Evidence becomes useful when it is expressed as a gap. A workable gap statement describes the evidence-supported current state, the target state, the likely impact, and the unresolved decision question. This prevents a jump from an observation such as “35% of cases are re-entered” to an unsupported conclusion such as “we need a new platform.” Re-entry might result from conflicting data definitions, misunderstood exceptions, missing integration, or an outdated policy, so the cause remains a hypothesis until enough evidence is collected.
Finally, the team forms a target state. A good vision describes the change in value, work, data, capabilities, and decisions without locking the organization into a specific product. Principles such as simplifying before automating, capturing data once and reusing it responsibly, providing an assisted path, making accountability clear, measuring adoption and benefit, and testing at limited scale when uncertainty is high help teams make consistent choices. The operating model then translates the vision into six connected layers: process, roles and structure, skills and capabilities, data, platforms and integration, and governance and measurement.
The four lessons form one sequence: distinguish types of digital change so technology is not confused with transformation; define value and stakeholders so the team knows what is worth changing; assess the current state with evidence so gaps become visible; and define vision, principles, and an operating model so the direction of change is clear. What has not yet been done is choose and sequence the initiatives. That is the next subject: use the gaps and target state to generate alternatives, then build a portfolio and roadmap that considers value, feasibility, risk, and dependencies.
Review questions
Test your understanding with these questions. Marking and saved results are available with a free account.
Create a free account to mark your answers and save your progress.