When we track clients through their agile and digital delivery excellence transformations, there is repeated question "What separates top-performing teams from those that are just starting out?" With this question in mind, the teams were segmented into quartiles based on their performance and outcome scores and examined how the maturity of their capabilities and behaviors compared. Their answers provided insight into which capabilities teams should mature over time to move up the stairway to digital excellence to improve performance.

What we have seen in the data is consistent with our client experience: you can't do everything at once and attempting to skip "steps" won't get you to best-in-class performance. Some organizations will sequence their "stairs" a bit differently depending on their initial state and organizational priorities, but the sequencing in the Picture 1 represents a logical progression that has worked for leading organizations. Organizations that aspire to reach the top stair may see not only improved effectiveness, productivity, and quality but also major improvements in speed, indicating that the company has provided value faster to customers—the true focus of delivery excellence.

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Digital transformation is not just about technology, but about transforming the entire business and the companies need to focus on three key areas: customer experience, operational processes, and business models. Companies need to align their digital strategy with their overall business strategy, and that the two should not be treated as separate entities.

Companies need to start at the foundation stage, which involves building a strong digital foundation by establishing a clear vision and strategy, investing in the right technology and talent, and creating a culture of innovation. The foundation stage is critical as it sets the stage for the rest of the journey.

The next stage is efficiency, which involves using digital technologies to improve operational processes and drive efficiency. This includes using automation and analytics to streamline processes, reducing costs, and improving productivity. The authors argue that companies should focus on optimizing their existing processes before moving on to more innovative initiatives.

The third stage is innovation, which involves using digital technologies to create new products, services, and business models. This includes experimenting with new technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) to create new revenue streams and improve customer experience. Companies should focus on creating a culture of innovation and experimentation to drive success in this stage.

The final stage is transformation, which involves completely transforming the business model to become a fully digital organization. This includes rethinking the entire value chain, from product development to customer service, and leveraging digital technologies to create new business models. Companies that successfully reach this stage will be able to achieve sustainable competitive advantage in the digital age.

Overall, we think that "stairway to digital excellence" framework provides a useful guide for companies looking to improve their digital capabilities. By focusing on the key areas of customer experience, operational processes, and business models, and following the four stages of the framework, companies can successfully navigate the complex journey of digital transformation and achieve sustainable competitive advantage in the digital age