What is Digital Maturity? – Definition
Digital maturity (Digital Maturity Level) is a multidimensional metric that measures a company’s progress on the path of digital transformation. It captures not only the use of technologies, but also the digital competence of employees, the adaptability of processes, and the strategic anchoring of digitalization.
Unlike a pure IT assessment, digital maturity considers the interplay of people, organization, and technology. A company with state-of-the-art IT but analog-thinking leadership has a lower maturity level than one that consistently works in a data-driven manner with simple technology.
For Austrian SMEs, maturity analysis is the ideal starting point for SME digitalization: it creates transparency about the current state and enables a prioritized, resource-efficient digitalization roadmap.
The 5 Levels of Digital Maturity
Most maturity models distinguish five development levels:
| Level | Designation | Characteristics |
|---|---|---|
| 1 | Initial / Ad-hoc | Digitalization sporadic, no strategy, isolated solutions |
| 2 | Managed | Individual processes digitalized, initial standards defined |
| 3 | Defined / Integrated | Company-wide digital strategy, networked systems |
| 4 | Quantitatively Managed | Data-driven decisions, AI deployment begins |
| 5 | Optimizing / Transforming | Continuous digital innovation, digital business models |
Important: A higher maturity level is not automatically better. What matters is that the maturity level fits the industry, company size, and strategic objectives. Not every SME needs to reach level 5—but every company should know where it stands and where it wants to go.
The 6 Dimensions of Digital Maturity
A comprehensive maturity model evaluates at least these six dimensions:
1. Strategy & Leadership: Is there a clear digital strategy? Is digital transformation a top management priority? Are digital initiatives aligned with the innovation strategy?
2. Culture & Competencies: How digitally affine is the workforce? Is there an innovation culture that encourages digital experimentation? Is there continuous investment in digital training?
3. Processes & Organization: How digitalized are core processes? Are agile methods being used? Is there an end-to-end value chain without media breaks?
4. Technology & Infrastructure: How modern and integrated is the IT landscape? Cloud readiness? Degree of automation? Cybersecurity level?
5. Data & Analytics: Is data systematically captured and utilized? Are there data-driven decision-making processes? Is AI being deployed? (AI strategy)
6. Customers & Ecosystem: How digital is the customer journey? Are there digital sales channels? How networked is the company with partners and suppliers?
Digital Maturity Assessment: How to Measure Your Maturity Level
A Digital Maturity Assessment typically follows this process:
- Self-assessment: Online questionnaire for executives and employees covering all six dimensions
- Interviews: In-depth discussions with key personnel from IT, functional departments, and management
- Process analysis: Evaluation of core processes regarding digitalization level and optimization potential
- Technology audit: Inventory of deployed systems, interfaces, and data management
- Benchmark: Comparison with industry average and best practices
- Maturity report: Visualization of results as a spider diagram with concrete recommendations for action
Programs such as KMU.DIGITAL support external guidance for maturity analyses—innovation consulting can assist with both the analysis and the derivation of measures.
Increasing Digital Maturity: Roadmap in 4 Phases
Phase 1 – Foundation (Level 1→2): Digitalize basic data, implement ERP/CRM, define cloud strategy, build digital core competencies
Phase 2 – Integration (Level 2→3): Network systems, digitalize end-to-end processes, design digital customer journey, formulate digital strategy
Phase 3 – Data-Driven (Level 3→4): Build data-driven decision-making culture, implement analytics, pilot initial AI applications
Phase 4 – Digital Innovation (Level 4→5): Develop digital business models, evaluate platform strategies, continuous digital business model innovation
A realistic, prioritized roadmap is crucial. Not everything at once—but consistently step by step. Change management accompanies the entire process.
Established Maturity Models in Comparison
- MIT Sloan Digital Maturity Model: 4 levels (Early, Developing, Maturing, Digitally Mature), focus on strategy and culture
- Deloitte Digital Maturity Model: 5 dimensions (Customer, Strategy, Technology, Operations, Organization), practice-oriented
- Industry 4.0 Readiness (VDMA/WKO): Specifically for manufacturing companies, 6 dimensions, focus on Industry 4.0
- EFQM Digital Transformation Framework: European model with focus on excellence and sustainable development
Digital Maturity in Austrian SMEs
Studies show that many Austrian SMEs have a digital maturity level of 1.5 to 2.5—between “Ad-hoc” and “Managed.” The main areas for action:
- Missing digital strategy: Digitalization is often project-driven rather than strategy-driven
- Data silos: Information is trapped in isolated systems (Excel, email, local databases)
- Competency gaps: Digital skills are lacking particularly in middle management and among skilled workers
- Underinvestment: IT budgets are below the European average
The good news: SMEs in particular can increase their maturity level quickly because decision-making paths are short and changes are not slowed by corporate structures. With the right innovation consulting and use of innovation funding, a jump of 1–2 levels within 12–18 months is realistic.
Determine Your Digital Maturity
Where does your company stand on its digital journey? We conduct a compact Digital Maturity Assessment with you and develop a prioritized digitalization roadmap.
Frequently Asked Questions About Digital Maturity
How long does a Digital Maturity Assessment take?
For an SME, a compact assessment typically takes 2–4 weeks: one week for the online self-assessment, one week for interviews and process analysis, and 1–2 weeks for evaluation and roadmap creation. Lean self-assessments (e.g., the WKO digital check) provide an initial baseline in 30 minutes—though less detailed.
What does a maturity analysis cost?
Costs vary depending on scope: A simple online self-check is often free (e.g., through WKO). A professional assessment by an innovation consultancy typically costs 3,000–8,000 € for SMEs. Through programs such as KMU.DIGITAL, up to 50% of consulting costs can be funded. Given the investments that a digitalization program entails, the assessment is a comparatively small but highly profitable investment.
Does every company need to reach the highest maturity level?
No. The target maturity level should be aligned with the industry, company strategy, and customer requirements. A craft business does not need to achieve the same digitalization level as a software company. What matters is that the maturity level is sufficient to remain competitive and meet customer expectations—and that a clear development path is defined.
What is the difference between digital maturity and digital transformation?
Digital maturity is a snapshot—it measures where a company stands today. Digital transformation is the process—the path a company takes to increase its maturity level. One could say: maturity is the map, digital transformation is the journey. Both concepts complement each other: without maturity analysis, there is no orientation; without a transformation process, the analysis remains inconsequential.