(Editors’ note: This is the third of a five-part series of articles about the journey to creating an end-to-end business network that enables demand-driven supply capabilities.)
How do companies manage the arduous journey of end-to-end digital transformation, while keeping the business operating?
For leading organizations, the answer is adoption of the five-stage maturity and capability model, originally developed at AMR Research and continuing to be researched by Gartner.
The five-stage framework is used by leaders to diagnose the state of current business and supply-chain capabilities (including work practices, processes, people, and technologies); plan transformative change, and report progress to the larger business.
The maturity model codifies the steps that a company needs to take to evolve from a linear and reactive supply chain to the advanced orchestration of key capabilities (described as “Stage 5+”). In that final stage, the supply chain becomes part of an extended partner network, as in the case of the end-to-end life sciences and healthcare ecosystem.
The five-stage model is an extremely useful tool for leading and managing change, if deployed systematically. It provides a framework to:
Describe pertinent industry trends in a staged manner,
Describe, assess, and diagnose the state of a business’s capabilities,
Provide a roadmap to plot the journey to a specific industry or business vision,
Answer specific questions based on best and practices, metrics, and benchmarks in the current stage of a company’s capabilities,
Identify specific challenges within the current stage of capability,
Articulate practices that represent “what good looks like,” as well as identify potential pitfalls and constraints,
Outline and benchmark best practices and opportunities for organizations (for example, within the life sciences networked ecosystem),
Track the status of, and make recommendations on, the company’s stage of capability,
Support decision-making and project prioritization as the company evolves the technology and digital-transformation roadmap, and
Support the organization’s evolution, talent pool, and operating model as the journey to a networked partner ecosystem progresses.
The model is a change-management framework for developing leadership and business practices, as companies mature from linear point-to-point businesses to multidimensional network platforms of players. It offers a valuable roadmap for coalescing people, process and technology elements into a digitally based supply-chain networked ecosystem.
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