The framework for assessing company’s digital transformation readiness

• process efficiency is measured: 1) close to real-time for operational management; and 2) for the needs of business intelligence;

• a system of metrics is described: what to measure, how to measure, whether it is normative and responsible;

• the coverage of measurement segments is defined: Operational efficiency, Finance, Legislation, Problem identification, and Consumer experience;

• the processes are decomposed into sub-processes and divided into actions and workflows concerning the company's divisions;

• organizational rules are established; processes are planned; process descriptions are approved;

• formal cross-functional process models are used;

• a system of indicators of cross-functional processes is built.

All listed aspects can be integrated into the following proposed readiness criteria:

• business processes standardization;

• business processes integration;

• automation of business processes;

• control of business processes.

The results of standards & practices analysis allow the DTRA framework to provide the requirement “The completeness of the criteria system” (requirement 1).

Results of stage 4. Verification of readiness criteria and characteristics

The objects of the research in case study 2 are engineering companies (C1-C9) that are currently implementing successful digital transformation projects. As it was mentioned above, mechanical engineering companies confirm the possibility of successful digital transformation in spite of strong technological gap.

C1. KAMAZ PJSC: one single production base incorporates the overall truck manufacturing cycle, beginning from design, manufacture, vehicle and component assembly, and ending up with the sales of finished products and service backup (https://kamaz.ru/).

C2. UEC-Saturn PJSC: engine-building company, specialized in research and development, production, marketing and sales, after-sale services of gas-turbine engines (and power plants/units) for aviation, power-generating and gas-pumping plants, ships, onshore, and off-shore industrial facilities (http://www.npo-saturn.ru).

C3. Novocherkassk Electric Locomotive Plant: the largest Russian manufacturer electric locomotives (https://www.nevz.com/).

C4. United shipbuilding Corporation: the largest shipbuilding company in Russia (https://www.aoosk.ru/).

C5. Moscow Machine-Building Plant “Vpered”: production of tail rotor blades and rotor blades for helicopters of Mi series (http://mmz-vpered.ru/).

C6. Machine-Building Factory of Podolsk JSC: designs, engineers and fabricates steam and hot-water boilers of various types for thermal power plants (http://www.po- dolskmash.ru/).

C7. PSJC “Sukhoi Company”: development, production, training of flight personnel, after-sales service for combat and civil aircrafts (https://www.sukhoi.org).

C8. Shvabe: development and serial production of optical and laser systems and complexes, modern optical materials and technologies, high technology medical equipment, aerospace monitoring and remote sensing systems of the Earth, scientific research instruments, energy-saving lighting equipment, nanomechanics (http://shvabe.com).

C9. KEMP JSC: production of machines and equipment for civil application: multifunctional frontal loaders, trailed and truck-mounted lifters, hydrostatic transmissions, and hydraulic platforms (http://www.kemz.org/).

The subject of research is the changes implemented in companies in the period preceding digital transformation. The aim of the analysis is to determine whether these changes confirm the selected at the previous stage criteria and characteristics.

The final list of criteria of a company's digital transformation readiness as the result of the verification and aggregation of initial list of readiness criteria obtained on the stage 3 (for each domain) is presented in Table 3. Example of characteristic of Systematic management domain is shown in Table 4.

Table 3. Criteria of the company's readiness for digital transformation

assessing digital transformation readiness

Table 4. Characteristics of the company's readiness for digital transformation

Fig. 5. The distribution of evidence by criterion

Figure 5 presents the distribution of pieces of evidence from the cases C1-C9 examined for all proposed readiness criteria. These results confirm the relevance of the selected criteria for assessing readiness. In all the cases examined, there is evidence of the proposed criteria. Therefore, the framework satisfies the system requirement “The relevance of the criteria” (requirement 3).

It should be noted that changes implemented in the company can lead to improving the characteristics related to different domains. This significantly complicates the structure of the framework for assessing companies' digital transformation readiness.

Conclusion

The key questions for companies that have only started transformations are how to start and what barriers prevent digital transformation. These questions concern the company's readiness for digital transformation, focusing on its capabilities and internal barriers.

The analysis of existing solutions for assessing readiness for digital transformation, proposed by consulting companies and the academic community, revealed an absence of consensus on criteria and characteristics of readiness, as well as justifications for proposed criteria and characteristics in most reviewed works. The lack of clarity creates a problem in choosing a readiness assessment tool that most closely matches needs. As a result, this slows down or prevents the formation of a digital transformation strategy. Moreover, as demonstrated by the survey, some considered criteria in existing frameworks are not always definitely interpreted by representatives of Russian companies. This complicates the use of these frameworks and reduces confidence in the results of an assessment.

These reasons have resulted in the development of a new readiness assessment framework that meets the following business requirements:

* taking into account characteristics of Russian companies as objects of digital transformation;

* understandability and validity of criteria and characteristics of readiness;

* transparency of the framework structure.

Implementation of these requirements permits positioning the framework as a con-venient and understandable tool for digital transformation readiness self-assessment by Russian companies.

In addition to business requirements during the research process, the following system requirements were formulated for the framework as a tool that ensures the reliability of the obtained estimates:

* completeness of criteria;

* a balanced distribution of criteria by domains;

* the relevance of the criteria.

In support of compliance with these requirements, an author's method of designing a framework was proposed. The method combines the analysis of practical cases of companies that successfully implement digital transformation projects and theoretical study of modern concepts and best management practices.

As a result of this method, the DTRA framework for assessing company readiness for digital transformation was developed, which includes criteria and characteristics grouped into the domains “Systematic management”, “Enterprise architecture”, “Using data”, “Maturity of business processes”, and “Corporate culture”. The criteria are universal, they do not depend on the type and scope of the company, its size, etc. However, industry peculiarities can be taken into account. For each enterprise, there are critical resources and success factors, which relate to specific domains. Such domains need to be investigated more deeply, by specifying, and decomposing characteristics.

The framework is intended for a qualitative assessment of readiness and the development of the company's management understanding of what may hinder the success of the digital transformation.

To enhance the validity of the findings, further research could include a broader case sample. To improve the applicability and practical contributions of this study, new research will focus on selecting metrics for readiness characteristics and developing evaluation algorithms. Another question that requires additional research is whether the proposed framework can be applied to companies in advanced economies -- the leaders of digital transformation.

This paper is an initial step towards creating a sophisticated model for assessing a company's digital transformation readiness, which includes criteria, characteristics, metrics, and evaluating algorithms.

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