Chapter 1: Technology Maturity Assessment

Understanding your organization's technological capabilities and alignment with strategy.



What is a Technology Maturity Assessment?

Technology maturity refers to the sophistication of a firm's technological capabilities. A business is defined as technologically mature not by the newness of the tech it owns but rather by how effectively it integrates and uses available tech to pursue its strategic goals. Hence, a small optometrist firm that automates appointment reminder texts could be considered technologically mature. The same cannot be said for a large mining corporation that lets equipment data slip through the cracks (regardless of how many robot dogs it buys from Boston Dynamics).

Assessing whether a company is technologically mature boils down to one question: Is the firm using the technologies at its disposal to the fullest potential? The assessment should consider the company's internal capabilities, like its existing data and software, and external technologies that fit its goals and budget. Critically, the assessment must not be restricted to shiny, cutting-edge products; sometimes, it only takes a few lines of code.

The overarching goal of conducting a Technology Maturity Assessment (TMA) is to pinpoint opportunities for enhancement and innovation. Is it time for new software or a new hire? Could the firm address its or its customers' issues by repurposing existing capabilities? Understanding where you currently stand and identifying avenues for advancement is the foundation for nurturing sustainable, long-term growth.

At the very least, a thorough assessment should reveal areas where a company falls behind its competitors. Moreover, it should detect waste (e.g., from staff spending time on tasks that technologies can do in seconds[1] and from expensive technologies that sit and gather dust.) This being the case, evaluating technology maturity is crucial for growth and survival [2][3], even in turbulent times[4].

Key Areas of Assessment

Four key elements constitute technology maturity:
  1. Data Management: Practices of data collection, storage, usage, and governance.
  2. Hardware: Physical devices like computers and servers.
  3. Software: Systems and applications that tell devices what to do.
  4. IT Support: Processes of providing technical assistance and maintenance.
Figure 1 The four areas are interrelated and interdependent. For instance, if a key piece of software requires input data to be formatted in a particular way (e.g., DD/MM/YYYY instead of MM/DD/YYYY), data management practices must be tailored accordingly. Similarly, a firm's hardware must meet its data storage needs (e.g., internal servers to store confidential data.) Correspondingly, each of the four elements must work on its own and in tandem with the other parts. Only by achieving synergy can a company streamline daily operations and harness opportunities for innovation.

Challenges

The first challenge of assessing a company's technological maturity is choosing the right metrics to evaluate each of the four key areas and their synergies. The next hurdle is collecting accurate and comprehensive information about the company's technological capabilities. This step can be especially difficult for managers who are less familiar with technology or in larger companies where insights get trapped in different departments. At this stage, it is crucial to encourage employees to embrace change, break down knowledge silos, and come forward about existing issues (without fearing reprimand).

Throughout the process, managers must resist simply cataloging the company's datasets and software licenses. Each asset should be evaluated in terms of efficiency and synergy with other resources. Finally, managers must move past simple observations and translate their findings into a strategic plan that fits the company's goals and budget.

Implementing the strategic technology plan brings its own set of challenges. Getting started can be daunting, especially when it comes to identifying the right solution and assembling the right team. Selecting a vendor or partner that aligns with the company's needs, budget, and data governance standards adds another layer of complexity. During implementation, the company might face issues like interoperability - new technologies not integrating well with existing systems. Lastly, managers might face resistance from staff or, even more critically, customers. Anticipating and preparing for these growing pains is crucial for a smooth transition.

Benefits

Although challenging, a technology maturity assessment is essential for determining which technology initiatives deserve priority and investment. The evaluation offers valuable insights into a company's technological strengths, weaknesses, competitive standing, readiness for new technologies, and underutilized assets. With this information, managers can craft strategic plans that address gaps and leverage existing strengths to seize opportunities and mitigate threats. Ultimately, an assessment is the first step for an organization that seeks to equip itself with technological capabilities that are strategic and grounded in its unique circumstances (instead of hype).