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DIGITAL TRANSFORMATION INDEX BASED ON THE DIGITAL MATURITY MODEL: CASE STUDY OF CROATIA

In the paper, the author defines a digital transformation index based on the digital maturity model and looks into the state of digital transformation in several large companies in Croatia. The digital transformation index sets strategic priorities and develops comprehensive action plans in line with the company's overall strategic objectives, depending on the degree of business stakeholders' involvement, new technology and initiative usage, business model innovation, the culture of sharing, as well as agility and openness in business. In the digital maturity model, special emphasis is given to the degree of introduction of cryptocurrencies and crypto domains in business. The digital transformation index indicates the degree of disruptive innovation which, in such circumstances, arises from the level of companies' digital transformation. Digital technologies are a part of digital economy, and through various system improvements – from incremental to radical – they transform the business processes, products and services of all market entities. Levels of mobile technology development, social networks, cloud computing, processing of large amounts of diverse data, use of sensors and the Internet of things, innovative business models, artificial intelligence, virtual and augmented reality, cryptocurrency and crypto domains in selected companies and the achieved degree of business digitalisation and digital content exchange in Croatia are all explored in the paper. It is proposed in the conclusion that it is only the organizations with high levels of digital transformation, which have successfully implemented the processes of digital business transformation, that create the necessary competitive market differences and, as pioneers of these changes, pose a threat to traditionally oriented organizations. The research has shown that organizations with new business models based on digitisation and digitalisation of business are ready for the coming disruptions and will remain leaders of market change.

digital transformation, digitisation, digitalisation, digital transformation index, digital maturity model

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