Digital Competencies Gap Analysis (1).pdf

Digital Competencies Gap Analysis

1. TecdeMonterreyX LDA03 - Leadership in the Digital
Age
Individual practice with peer evaluation
Digital Competencies Gap Analysis

Introduction
Our company is a 300-employee company specializing in industrial equipment production. While the
company has begun digitizing parts of its operations (like inventory and finance), most core functions still
rely on manual or semi-automated systems. With a vision to become a smart factory within 5 years, the
company is investing in cloud services, IoT, and data analytics but faces significant workforce upskilling
challenges.
The process will outline the steps involved in evaluating the current competencies, identifying future
requirements, assessing the gaps, and suggesting actionable recommendations for the development of
necessary competencies. This document also emphasizes the importance of digital competencies for
fostering innovation, enhancing productivity, improving collaboration, and achieving long-term
sustainability.
Objective
The objective of this analysis is to identify the current and future state of digital competencies in the
organization and develop a set of instructions to bridge the competency gaps necessary to facilitate digital
transformation. This analysis will serve as a guide for developing the required digital skills within the
workforce and ensuring that all team members are equipped with the necessary knowledge and tools to
thrive in a digital-first environment.
Creation of the Digital Competencies Gap Analysis
1.​Defining the Digital Competencies​

○​Outlining the specific digital competencies required for the organization’s transformation.
Digital competencies can vary depending on the organization’s goals, industry, and
technology adoption stage. Common competencies include: Data literacy, Cybersecurity
awareness, Cloud computing knowledge, Digital collaboration tools proficiency, AI and
machine learning awareness, Problem-solving in a digital environment, Digital project

2. management, Agility and adaptability in digital systems, Digital communication and
leadership skills, Knowledge of emerging technologies (e.g., IoT, blockchain)​
, Technical coding or programming skills, Digital marketing skills.​
2.​Conduction of a Gap Analysis
# Digital
Competency
Current State Desired Future
State
Gap
Identified
Development
Recommendations
1 Data Literacy Basic use of
Excel for
reporting; no
advanced
analytics skills.
Proficiency in data
interpretation,
visualization, and
business
intelligence tools
(Power BI,
Tableau).
High Implement a
company-wide data
literacy program; begin
with Excel → Power BI
transition training.
2 Cybersecurity
Awareness
Only IT staff
have
cybersecurity
training;
frequent
phishing
incidents.
All employees
understand secure
password practices,
phishing
awareness, and
data protection
regulations.
Moderate Run mandatory
cybersecurity
workshops and
quarterly phishing
simulations.
3 Cloud Computing
Knowledge
IT department
uses cloud
storage (e.g.,
Google Drive);
others
unfamiliar.
Company-wide
familiarity with
cloud platforms like
AWS, Azure, and
cloud-based
collaboration.
High Deliver role-based
cloud training
modules; use internal
champions to mentor
others.
4 Digital
Collaboration
Tools
Teams use
email and basic
chat tools;
limited use of
MS Teams or
Slack.
Mastery of
Teams/Slack,
shared documents,
video meetings,
and asynchronous
communication.
Moderate Formalize digital tool
training; establish
“digital collaboration
norms” across
departments.

3. 5 AI & Machine
Learning
Awareness
Limited to R&D;
rest of staff
unaware of AI
use cases.
Company-wide
awareness of AI’s
value in
manufacturing,
supply chain, and
customer service.
High Host monthly “AI in
Industry” webinars;
build AI literacy
resources with use
cases.
6 Digital
Problem-Solving
Employees
struggle to
troubleshoot
digital tools; rely
on IT.
Ability to
independently
troubleshoot and
seek solutions
using knowledge
bases/forums.
Moderate Launch an internal
“Digital Help Hub”;
promote self-service
and peer-to-peer
troubleshooting.
7 Digital Project
Management
Projects
managed
manually
(paper,
spreadsheets);
no digital tools.
Familiarity with
tools like Jira,
Trello, Asana for
transparent project
tracking.
High Train project leads in
digital PM tools; pilot
projects using Asana
with coaching support.
8 Agility &
Adaptability
Resistance to
change; digital
initiatives often
delayed.
Employees are
open to
experimentation
and iterative
improvement
cycles.
High Initiate “Digital Change
Agent” program;
create a culture of
experimentation and
rapid prototyping.
9 Digital
Communication &
Leadership
Leaders
communicate
via memos; little
digital
engagement.
Leaders actively
engage using
digital platforms
(video updates,
internal blogs).
Moderate Provide digital
leadership coaching;
introduce transparent
internal comms
strategies.
10 Emerging Tech
Knowledge (IoT,
Knowledge
limited to CTO
Broader
understanding of
emerging tech and
High Organize quarterly
“Tech Exploration”

4. Blockchain,
AR/VR)
and a few
engineers.
its relevance to
company growth.
days and encourage
self-paced e-learning.
11 Programming &
Automation Skills
10% of staff
have basic
scripting or
coding skills.
Broader exposure
to automation tools
(e.g., Power
Automate, Python
scripting for
processes).
High Offer beginner courses
in Python, Power
Automate; introduce
citizen developer
initiatives.
3.​Action Plan for Bridging the Gaps​

○​This may include:​

■​Developing tailored training programs or e-learning platforms for employees.​

■​Hiring or upskilling employees in specific digital areas where expertise is lacking.​

■​Introducing digital leadership programs to foster leadership in the digital age.​

■​Implementing mentorship programs to help employees learn from those with
more experience in digital technologies.​

■​Encouraging cross-functional collaboration to develop a holistic understanding of
digital transformation.​

■​Using digital tools for continuous improvement and feedback loops to ensure
progress.​

4.​Creation of a Timeline for Implementation​

■​Break down the plan into phases (short-term, medium-term, and long-term
objectives).​

■​Set milestones to track the progress and impact of the initiatives.​

5.​Monitoring and Evaluating Progress​

○​Regularly assess the progress made toward closing the competency gaps.​

■​Use key performance indicators (KPIs) such as employee engagement,
completion rates of training programs, and improved productivity to measure
success.​

5. ■​Conduct feedback surveys and performance reviews to determine if the
competency development initiatives are effective.​

■​Adjust the plan as necessary to address any unforeseen challenges or emerging
needs.​

Benefits of Possessing Digital Competencies in the
Organization
The benefits of developing strong digital competencies in the organization are manifold and can drive
organizational growth, innovation, and efficiency. These benefits include:
1.​Enhanced Productivity​
Employees who possess the necessary digital competencies can leverage technology to
automate repetitive tasks, streamline workflows, and improve collaboration. This results in time
and cost savings, ultimately increasing overall productivity.​

2.​Improved Decision-Making​
Digital competencies, such as data literacy and analytics skills, empower employees to analyze
and interpret data effectively. This enables more informed decision-making and helps leaders to
make better strategic choices based on real-time information.​

3.​Increased Innovation​
Organizations with a digitally competent workforce are better equipped to innovate and adopt
new technologies that enhance business processes. Digital competencies in areas like AI,
machine learning, and cloud computing enable the development of new products, services, and
business models.​

4.​Adaptation to Change​
Digital competencies foster a culture of adaptability and resilience in the face of technological
change. Organizations with employees who are comfortable using digital tools and platforms can
more quickly adjust to changing market demands and technological advancements.​

5.​Attracting Top Talent​
A company that invests in its employees' digital development is seen as a leader in innovation
and technology. This reputation helps attract top talent who want to work in a forward-thinking,
tech-driven environment, thereby strengthening the company’s competitive edge.​

6.​Better Customer Experience​
Employees with strong digital competencies can utilize advanced tools and platforms to deliver a
superior customer experience. For example, digital marketing skills, data analytics, and customer
relationship management (CRM) systems can enhance the personalization of services and
improve client satisfaction.​

7.​Future-Proofing the Organization​
Possessing digital competencies ensures that the organization remains competitive and relevant

6. in an increasingly digital world. By upskilling employees and staying ahead of technological
trends, the organization can anticipate and respond to disruptions before they impact the
business.​

Conclusion
Digital transformation is not just about implementing new technology; it is about ensuring that people have
the necessary skills and competencies to lead and navigate this transformation. The gap analysis process
allows organizations to understand their current digital competency level, identify areas for growth, and
develop a roadmap for enhancing the digital skills of their workforce. By focusing on developing the right
digital competencies, organizations can unlock a multitude of benefits that foster innovation, improve
performance, and future-proof the business against disruptions.