Lecture Notes in Networks and Systems 549

Cengiz Kahraman
Elif Haktanır Editors

Intelligent
Systems
in Digital
Transformation
Theory and Applications
Lecture Notes in Networks and Systems

Volume 549

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Cengiz Kahraman · Elif Haktanır
Editors

Intelligent Systems in Digital

Transformation
Theory and Applications
Editors
Cengiz Kahraman Elif Haktanır
Department of Industrial Engineering Department of Industrial Engineering
Istanbul Technical University Bahcesehir University
Maçka, Turkey Besiktas, Istanbul, Turkey

ISSN 2367-3370 ISSN 2367-3389 (electronic)

Lecture Notes in Networks and Systems
ISBN 978-3-031-16597-9 ISBN 978-3-031-16598-6 (eBook)
https://doi.org/10.1007/978-3-031-16598-6

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Contents

Literature Review on Digital Transformation

A State of the Art Literature Review on Digital Transformation . . . . . . . . 3
Elif Haktanır, Cengiz Kahraman, Sezi Çevik Onar, Başar Öztayşi,
and Selçuk Çebi
Similarities and Differences Between Digital Transformation
Maturity Models: A Literature Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Paulo Carrijo, Bráulio Alturas, and Isabel Pedrosa

Safety and Security

Intelligent Digital Transformation in Modern Socio-Technical
Systems – A Sustainable Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Adam Jabłoński and Marek Jabłoński

Intelligent Digital Transformation

Intelligent Digital Transformation Strategy Management:
Development of a Measurement Framework . . . . . . . . . . . . . . . . . . . . . . . . . 77
Umut Şener, Ebru Gökalp, and P. Erhan Eren

Automotive
Digital Transformation in Automotive Sector . . . . . . . . . . . . . . . . . . . . . . . . . 97
Elif Haktanır, Cengiz Kahraman, Selçuk Çebi, İrem Otay,
and Eda Boltürk

Energy
Digital Transformation and Prosumers Activities in the Energy
Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Piotr F. Borowski

ix
x Contents

Digital Transformation Success Factors Evaluation in Energy

Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
Burak Berkay Havle and Mehtap Dursun

Smart Manufacturing
Education as a Promoter of Digital Transformation
in the Manufacturing Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Ari Pikkarainen and Maarit Tihinen
Standardization in Smart Manufacturing: Evaluation
from a Supply-Side Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
Yulia Turovets and Konstantin Vishnevskiy

White Goods
Redesign, Smart and Digital Enablement of Sales and Operations
Planning Processes: A Study of White Goods Manufacturing . . . . . . . . . . 221
Burak Kandemir, Eren Özceylan, and Mehmet Tanyaş

Health
Cybersecurity Framework Prioritization for Healthcare
Organizations Using a Novel Interval-Valued Pythagorean Fuzzy
CRITIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
Hatice Camgöz Akdağ and Akın Menekşe
Multi-layered InterCriteria Analysis as a Digital Tool for Studying
the Dependencies of Some Key Indicators of Mortality During
the Pandemic in the European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
Velichka Traneva and Stoyan Tranev
Development of Intelligent Healthcare Sytems Through Digital
Transformation and Operations Research Modeling . . . . . . . . . . . . . . . . . . 295
Gozdem Dural-Selcuk

Banking
Imperatives, Trends and Dynamics of Digital Transformation
as Banks Adopt Technology and Intelligent Systems . . . . . . . . . . . . . . . . . . 323
Swayambhu Dutta, Himadri Sikhar Pramanik, Sayantan Datta,
and Manish Kirtania

Tourism
Digital Transformation in Tourism: An Intelligent Information
System Proposition for Hotel Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . 351
Tutku Tuncalı Yaman and Hülya Başeğmez
Contents xi

Insurance and Finance

Digital Workplace Transformation and Innovation in the Financial
Service Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375
Jasmina Selimovic, Amila Pilav-Velic, and Lamija Krndzija
Digital and Customizable Insurance: Empirical Findings
and Validation of Behavioral Patterns, Influential Factors,
and Decision-Making Framework of Baltic Insurance Consumers
in Digital Platforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397
Gedas Baranauskas

Education
Digital Transformation in Higher Education: Intelligence
in Systems and Business Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429
Albert Rof, Andrea Bikfalvi, and Pilar Marques
Digital Transformation in Education: Relevant Paradigms
and Theories of Teaching and Learning in the Industry 4.0 . . . . . . . . . . . . 453
David Mhlanga
Digitalization Maturity Model Development for Higher Education . . . . . 471
Nursel Buse Ulufer, İkra Tuba Dolgun, Şevval Birinci, Atalay Işık,
Semiha Bal, Gül T. Temur, and Alper Camcı

Smart Cities
Smart City and Smart Communities: Emerging Conditions
for Digital Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491
Aleksey N. Raskhodchikov and Maria Pilgun
Digital Transformation for Intelligent Road Condition Assessment . . . . . 511
Sicen Guo, Yue Bai, Mohammud Junaid Bocus, and Rui Fan

Transportation
Digital Maturity Assessment of Ship Management Companies
Towards Organizational Intelligence: Blue Digital Focus . . . . . . . . . . . . . . 537
Kadir Cicek, Metin Celik, and S. M. Esad Demirci
Digital Transportation Maturity Measurement . . . . . . . . . . . . . . . . . . . . . . . 561
Bilge Varol, Gulfem Er, and Gül Tekin Temur
Transport Digitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 579
G. V. Kuznetsova and G. V. Podbiralina
xii Contents

Future of Digital Transformation

Future of Digital Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 611
Elif Haktanır, Cengiz Kahraman, Şükran Şeker, and Onur Doğan
Transportation
Digital Maturity Assessment of Ship
Management Companies Towards
Organizational Intelligence: Blue Digital
Focus

Kadir Cicek, Metin Celik, and S. M. Esad Demirci

Abstract Digital maturity assessment is one of the pioneering studies of digital

transformation. It is a stepwise approach to support the organizational awareness to
establish the link between technology and business in different levels. It is a step-by-
step approach to support organizational awareness and even achieve organizational
intelligence in order to establish the link between technology and business. This
chapter develops a novel self-assessment methodology, namely Blue Digital Focus,
to conduct digital maturity analysis of ship management companies. The assess-
ment involves seven dimensions such as strategy, organization, customer, technology,
operations, innovations, process improvement. The implementation phase of Blue
Digital Focus is conducted with an illustrative case study to demonstrate the model.
Completing the assessment, a comprehensive analysis and reporting, including matu-
rity scores, rankings, recommendations, is conducted. The proposed approach is
recognized as useful tool both to ship managers and to maritime researchers inter-
ested in understanding the digital readiness level in practice. Blue Digital Focus has
great potential to investigate the future needs of key maritime stakeholders responding
to priorities of smart, green and sustainable transportation system. A further study
through an interactive platform supported with digitalization survey visits is planned.

K. Cicek
Marine Engineering Department, Maritime Faculty, Istanbul Technical University, Tuzla,
34940 Istanbul, Turkey
M. Celik
Basic Science Department, Maritime Faculty, Istanbul Technical University, Tuzla,
34940 Istanbul, Turkey
S. M. E. Demirci (B)
Maritime Transportation Engineering, Istanbul Technical University, Tuzla, Istanbul, Turkey
e-mail: [email protected]
Maritime Vocational School, Sakarya University of Applied Sciences, Sakarya, Turkey
K. Cicek · M. Celik · S. M. E. Demirci
Blueanalytica Maritime R&D and Information Technologies Inc., Teknopark, Istanbul, Turkey

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 537
C. Kahraman and E. Haktanır (eds.), Intelligent Systems in Digital Transformation,
Lecture Notes in Networks and Systems 549,
https://doi.org/10.1007/978-3-031-16598-6_23
538 K. Cicek et al.

Keywords Maritime · Ship management · Digital transformation · Digital

maturity · Organizational intelligence

1 Introduction

Maritime transport systems are responsible for the transport approximately 90%
of the international trade in goods. The recent statistical reports, published by key
authorities such as International Chamber of Shipping (ICS) and The United Nations
Conference on Trade and Development (UNCTAD), highlight the vital importance
of shipping to the global economy [1]. On the other hand, digitalization, accelerated
with COVID-19 pandemic, is a new paradigm to shape the future of key maritime
organizations [2]. In fact, advancements in digital technologies advance the abilities
to collect, store and process large amounts of data. So, digitalizing the maritime
transportation processes would bring wide-ranging economic benefits, contribute
to a stronger, more resilient supply chain and help to improve the organizational
intelligence of ship management companies. The organizational intelligence can be
defined as the ability of the organizations to acquire, create, and apply and transfer
knowledge between individuals in their businesses. With the help of the data tech-
nologies, employees can be able to access and use the entirety of the organization’s
knowledge. That is why, nowadays digital transformation turns into a crucial issue
not only a stronger, more resilient supply chain but also an improved organizational
intelligence in maritime industry.
Despite the rapid spread and uptake of digital technologies, the challenges with
skills shortages, system interoperability, and cybersecurity significantly stem digital
transformation processes in maritime environment. Considering the mentioned chal-
lenges, it seems a growing interest in future skill development along with the digi-
talization in shipping [3]. On the other hand, unprecedented world events enforce
maritime organizations to strengthen the maritime supply chain resiliency through
adopting digital technologies. This challenge is become a significant competitive
factor for the relevant parties. By these reasons, it is observed that the number of
studies at academic, entrepreneurship and industrial level has been promoting [4–6].
Maritime security/safety enhancement, reducing environmental damage, fuel effi-
ciency, information integration, traceability and transparency are considered as the
potential needs and motivation behind the digital transformation (DX) [7].
In this circumstance, maritime organizations concentrate on adoption digital tech-
nologies into their core operations in order to prepare themselves for the unforeseen
disruptions.
Among the maritime stakeholders, especially the ongoing efforts and pursuits of
ship management companies in digital transformation have been stand out in the
market [8]. Additionally, international authorities have addressed the digitalization
as a key milestone for the intelligent and resilient maritime organization in future
perspective.
Digital Maturity Assessment of Ship Management Companies … 539

This book chapter proposes a novel self-assessment methodology, namely Blue

Digital Focus, to conduct digital maturity analysis of ship management company
organizations. The assessment involves seven dimensions such as strategy, organiza-
tion, customer, technology, operations, innovations, process improvement. The main
aim in producing the chapter is to promote the initial phase of digital transformation
program specified to maritime organizations, particular to ship management compa-
nies. The objectives of the chapter are given as follows: i) investigating the existing
digital maturity models, ii) understanding the core dimensions, maturity levels and
enablers, iii) developing a self-assessment mechanism, iv) demonstrating the digital
maturity assessment in ship management companies. Considering the fourth indus-
trial revolution trends, the originality of this chapter is to design and develop a
maritime-centered digital maturity assessment tool.
The organization of the chapter is given as follows: The chapter plainly begins
with short keynotes on maritime digitalization. Then, a literature review is conducted
on digital maturity assessment approaches applied in different industries to identify
the critical issues to be improved. Particular to maritime, Blue Digital Focus is
introduced, as a new digital maturity assessment methodology. Subsequently, the
analysis and reporting section of the Blue Digital Focus is demonstrated. The last
chapter gives a few concluding remarks and further research agenda.

2 Literature Review on Digital Maturity Assessment

Digital maturity assessment is a stepwise approach to support the organizational

awareness in digital transformation in order to establish the link between technology
and business in different levels (i.e. strategic, tactical, etc.). With the increasing
interest in digitalization, the maturity assessment studies cited in the literature
have upgraded to a reasonable number. Among them, Maturity Model for Digital
Strategy Assessment (MMDSA), offering KPI oriented digital strategy monitoring
tool, stands out as an effective approach [9]. To achieve a successful transforma-
tion, understanding the transformational goals and enablers, as key elements, is
so critical. For instance, transformation capability of a production company highly
depends upon the strategy management, value management, risk management, busi-
ness process management, IT management, organizational change management,
training management, program and project management, meta management [10].
Digital investigators are mainly referring capability maturity models (CMMs),
originally initiated to systematically monitoring of contracted software project [11].
Because it has a holistic structure, the use of the CMM concept has become quite
common in various fields. Referring CMMs, there are numerous models are devel-
oped and cited in literature. Just to name a few, Digital Investigation Capability Matu-
rity Model (DI-CMM), Process and enterprise maturity model (PEMM), Business
process maturity model (BPMM), Capability maturity model integration (CMMI),
etc. can be addressed.
540 K. Cicek et al.

In the first round of review, it was determined that the good practice of BPM is
being carried out in higher education institutions [12]. In manufacturing industry,
Digital Readiness Assessment Maturity (DREAMY) is recognized as a very strong
tool. It is developed based on CMMI framework applied to key processes cate-
gorized under design, engineering, production management, quality management,
maintenance management, and logistics management [13]. As an alternative to
DREAMY from future perspective, smart manufacturing readiness level (SMSRL),
and manufacturing operations management capability maturity model (MOM/CMM)
was studied to extend maturity tools in smart manufacturing era [14]. It is stated
that a comprehensive investigation through smart products/services, smart business,
strategy and organization are required to conduct maturity assessments in retail
industry [15]. With the increasing digitalization trends globally, maturity assess-
ment approaches in the literature are diversifying. Briefly, the following models can
be addressed; Industry 4.0 Maturity Model, IMPULS Industrie 4.0 Readiness Model,
Three-Stage Maturity Model in SMEs, Maturity and Readiness Model for Industry
4.0 Strategy, Maturity Model for Digitalization, Industrie 4.0 Maturity Index, Digital
Enterprise Model, etc. [16]. On the other hand, prestigious management and consul-
tancy companies (i.e. Deloitte, TM Forum etc.) have closely interested in delivering
practical assessment tools. Digital Maturity Model (DMM) of Deloitte, with high
visibility in the market, is becoming widespread. There are publicly available reports,
keynoted the digitalization success levels of different industrial disciplines, written
by the mentioned global companies [17, 18]. It is seen that the reports derived by
the worldwide consultancy companies have a high utility to practically produce
digital transformation solutions through the various organizations. In the literature,
very recent applications of digital maturity can be found in hospital organizations
[19], banking [20], airport [21], education enterprise [22], retail companies [23],
small and medium-sized enterprises, [24], workforce management [25], etc. Consid-
ering the applications in different disciples, benchmarking of digital maturity models
according to the dimension component is so important [26, 27].
In the last phase of the review, the digital maturity assessment studies along with
the maritime industry are considered. Despite the recent attempts at maritime digi-
tization, a dissertation on a comprehensive review of digital maturity models for
maritime companies [28] has addressed only one research paper [29] in this area.
The mentioned study is relevant to publish a digital readiness index utilized in smart
port development [29]. When the review progressed on this subject, it was deter-
mined that industrial initiatives were more advanced when compared to academic
studies. As a very distinctive tool, Maritime Digitalization Playbook (MDP) has been
offered to maritime organizations with a close collaboration between the Maritime
and Port Authority of Singapore (MPA) and Singapore Shipping Association (SSA).
MDP promotes a systematic approach to organize and execute the digital transfor-
mation plans that have followed up by maritime organizations of Singapore [30].
Especially in the early stage of digitalization initiatives, significant contributions
from this application are expected in regional manner.
Digital Maturity Assessment of Ship Management Companies … 541

Reviewing the existing models in literature and industrial level, the additional
critics on the maturity levels definitions and dimension structures will be a good refer-
ence to extend new practices. In this manner, the structural frameworks (i.e. dimen-
sions) of academic and industry-origin models were benchmarked. For example,
dimensions of DREAMY are organization, technology, monitoring and control,
process while digital-oriented, integrated and interoperability, defined, managed,
initial are the defined as maturity levels. IMPULS is constructed based on six
levels such as outsider, beginner, intermediate, experienced, expert, and performer
whereas strategy and organization, smart products, smart operations, smart factory,
employees, and data-driven services are the dimensions. The Deloitte-DMM of
provides a holistic view of digital maturity across the organization based on 5 dimen-
sions: customer, strategy, technology, operations organization & culture. The assess-
ment results reveal three-stages action map including imagine, deliver, run. As a
result of these comparisons, the importance of configuring the interfaces to be used
in digital maturity analysis has been understood.
When the review is completed, it is clearly stated that the number of digital matu-
rity analysis approaches and applications in different industries has been increasing
in recent years. In the meantime, digital maturity assessment studies specific to
maritime field are very limited. This chapter particularly fulfils the gap on awareness
of ship management companies in the subject of digital maturity.

3 Blue Digital Focus Framework

3.1 Framework

Blue Digital Focus is a digital maturity self-assessment tool through ship manage-
ment companies. The tool evaluates digital maturity of ship management companies
across seven clearly defined dimensions. The dimensions are strategy, organization,
customer, technology, operations, innovations, process improvement. In Fig. 1, the
conceptual framework of Blue Digital Focus is provided.
Compared to current digital maturity approaches, Blue Digital Focus is more
customized and tailor-made approach. It was designed by taking the organizational
structures of modern ship management company into account. It will reveal the
transformation roadmap for the operational elements that are anticipated to be needed
especially in the early stages of the transformation process.
The application of Blue Digital Focus is conducted in two phases; Module#0 Exec-
utive Development Phase, Module#1 Managerial Development Phase. In executive
level, the self-assessment seeks for the response to strategy, organization, customer,
technology, operations, innovations. The managerial level investigates the process
improvement potential of ship management companies. Figure 2 schematizes the
application phases of Blue Digital Focus.
542 K. Cicek et al.

Fig. 1 Conceptual framework of blue digital focus Source Figure produced by authors

Fig. 2 Application phase of blue digital focus Source Figure produced by authors
Digital Maturity Assessment of Ship Management Companies … 543

3.2 Strategy

To remain competitive in their industries and to take necessary actions through the
digital transformation, as a primary step, business leaders and managers must formu-
late and execute digital strategies that drive better operational performance [31]. In
this sense, this dimension represents vision, governance, planning, and management
processes that will support the implementation of the digital strategy [32]. With the
formulation and execution of the digital strategy, business leaders and managers
specify their path through the digital transformation process and through naviga-
tion in this path, they can gather results from the integration and the use of digital
technology with a broader impact on companies [33].

3.3 Organization

To stay competitive, companies need to change and adapt their technology, their
systems, their traditional ways of working, their approaches to solutions and as an
overall their organizations [34] to navigate into digital transformation. In other words,
the digitalization in the business processes, it radically enforces the redesigning of the
organizations as well. So, the organization dimension focuses on identifying changes
in communications, culture, structure, training, and knowledge management that will
help the companies to become a more credible digital transformation player [32].

3.4 Customer

Customer experience is an essential factor in business that plays a vital role in digital
transformation. Therefore, it is quite important to understand the needs of expecta-
tions of the customer from the perspective of digital transformation. So, this dimen-
sion focuses on the issues related with the enhancing customer experience, improving
customer engagement, analyzing customer behavior, and build a digital trust with
customer [35].

3.5 Technology

Digital transformation involves using digital technologies to redesign a process to

become more effective, to create value and new services for the stakeholders. Digital
transformation can involve many different technologies such as artificial intelligence,
machine learning, augmented reality, virtual reality, block chain, drones, internet of
things, robotics, 3-D printing, mobile applications, cloud technologies, etc. In such
544 K. Cicek et al.

a diverse technology landscape, this dimension representing the capabilities that

enable effective technology planning, deployment, and integration to support the
digital business [32].

3.6 Operations

Digital transformation helps companies to improve nearly every operation in the

value chain, from customer and supplier relationships to marketing to products and
services with the aim of enhancing the operational flexibility in the digital era. Within
this scope, this dimension focuses on the capabilities of the companies that support
the productivity, service management, and flexibility [32]. Increased maturity within
this dimension demonstrates a more digitized, automated, and flexible operation.

3.7 Innovation

Digital innovation is the use of digital technology and applications to improve busi-
ness processes and workforce performance, improve customer experience, and intro-
duce new products or business models. So, innovation dimension represents the
capabilities of the companies that enable more flexible, agile and adaptable ways of
working [32].
The digital maturity of each dimension, strategy, organization, customer, tech-
nology, operations, innovations, are assessed across six levels (level#0, level#1,
level#2, level#3, level#4, level#5), as presented in Fig. 3, considering the suitable
existing and targeted options. In level#0, the option is selected as “NOT DEFINED”
if the maritime organization has not taken any actions for digital transformation
in the relevant dimension [32]. In level#1, the option is selected as “INITIATED”
if the maritime organization has decided to move toward a digital business and
is taking initial steps in that direction [32]. In level#2, the option is selected as
“ENABLING” if the maritime organization is implementing initiatives within the
dimension that will form the foundation of its digital business [32]. In level#3,
the option is selected as “INTEGRATING” if the maritime organization’s initia-
tives are being integrated across the organization to support end-to-end capabilities
[32]. In level#4, the option is selected as “OPTIMIZING” if the maritime organiza-
tion’s digital initiatives within the dimension are being fine-tuned and used to further
increase overall performance [32]. In level#5, the option is selected as “PIONEER-
ING” if the maritime organization is advancing the state of the practice within the
dimension [32].
Digital Maturity Assessment of Ship Management Companies … 545

Fig. 3 Evaluation and action framework of process improvement dimension Source Figure
produced by authors

3.8 Process Improvement

This dimension is focused on investigating the digital maturity levels of key processes
regarding with crewing & training management, technical management, operational
management and HSQE management in ship management companies. It is asked to
respond to 30 processes executed by ship management company representatives.
Under crewing & training management, the following processes are consid-
ered: crew evaluation and selection, crew familiarization and wellbeing monitoring,
crew scheduling, competency monitoring and improvement, training planning and
delivery, operational crew reliability assessment. On the other hand, safety and envi-
ronmental performance trend analysis, emergency preparedness level prediction,
remote failure diagnostics support, docking planning, marine service performance
monitoring, maintenance planning and management, continuous fleet reliability anal-
ysis are the selected processes under technical management dimension. The oper-
ational management deals with the key process such as remote navigational safety
support, real-time monitoring of critical operations, ship operating cost analysis, fuel
consumption monitoring, EU MRV / IMO DCS reporting, bunker planning, voyage
546 K. Cicek et al.

reporting and analysis, ship routing and speed optimization. HSQE management
includes SMS documentation, inspection and audit (PSC, SIRE, etc.) report analysis,
safety culture improvement, hazard identification and risk assessment, accident, near
miss and nonconformity records analysis, safety management system effectiveness
review, regulatory & third-party requirements compliance analysis, KPIs manage-
ment, management of change implementation. Table 1 lists the classification of key
processes on which maturity assessment is conducted.
The processes are assessed considering the suitable existing and targeted options
to describe the level of digitalization in process management.
In level#0, the option is selected as “Process is NOT DEFINED” if the conditions
meet i) The process is not defined, ii) the process is not controlled at all.
In level#1, the option is selected as “Process is proceeding in INITIAL digital
maturity level.” if the conditions meet i) The process is poorly controlled, ii) Process
management is reactive, iii) Process management is not supported with the basic
organizational and technological tools to ensure repeatability, usability, extensibility
of the utilized solutions.
In level#2, the option is selected as “Process is proceeding in MANAGED digital
maturity level.” if the conditions meet i) The process is partially planned and imple-
mented, ii) Process management is weak due to lacks in the organization, iii) Process
management is weak due to the lack of information technologies, iv) The methods
are usually developed by the experience of the maritime executives of the company.
In level#3, the option is selected as “Process is proceeding in DEFINED digital
maturity level.” if the conditions meet i) The process demonstrates and disseminates
good practices, ii) The process supports the planning of effective management proce-
dures, iii) Process management is limited by some minor restrictions on integration,
iv) The process implementations reveal the need for interoperability.
In level#4, the option is selected as “Process is proceeding in INTEGRATED
digital maturity level.” if the conditions meet i) The process is consistently planned
and implemented, ii) Process management is substantially based on the informa-
tion exchange, iii) The enhancement of process is mostly supported with integrated
digital tools, iv) The process simultaneously follows-up third-party requirements to
deliver continuous transparent solutions, v) The solutions are fully meet the maritime
stakeholders’ expectations.
In level#5, the option is selected as “Process is proceeding in DIGITAL-
ORIENTED digital maturity level” if the conditions meet i) Process is structured
based on a solid technology infrastructure, ii) Process supports high level of inte-
gration and interoperability, iii) Process management enables speed, robustness and
security in information exchange, iv) The process is executed in collaboration among
the departments to achieve effective decision-making with group consensus, v) The
enhancement of process is mostly supported with an advance predictive model
to shape policies, culture, strategies, technologies in accordance with the future
maritime trends.
Figure 3 addresses the evaluation and action framework utilized in process
improvement dimension of Blue Digital Focus self-assessment program.
Digital Maturity Assessment of Ship Management Companies … 547

Table 1 Classification of key processes

Crewing & Training
Crew evaluation and selection
Crew familiarization and wellbeing monitoring
Crew scheduling
Competency monitoring and improvement
Training planning and delivery
Operational crew reliability assessment
Technical
Safety and environmental performance trend analysis
Emergency preparedness level prediction
Remote failure diagnostics support
Docking planning
Marine service performance monitoring
Maintenance planning and management
Continuous fleet reliability analysis
Operational
Remote navigational safety support
Real-time monitoring of critical operations
Ship operating cost analysis
Fuel consumption monitoring
EU MRV / IMO DCS reporting
Bunker planning
Voyage reporting and analysis
Ship routing and speed optimization
HSQE
SMS documentation
Inspection and audit (PSC, SIRE, etc.) report analysis
Safety culture improvement
Hazard identification and risk assessment
Accident, near miss and nonconformity records analysis
Safety management system effectiveness review
Regulatory & third-party requirements compliance analysis
KPIs management
Management of change implementation
548 K. Cicek et al.

After conducting a self-assessment in process improvement dimension, the ship

management company organizations ranked and clustered in different digital matu-
rity levels such as initiated, developing, defined, integrated and optimized. The Blue
Digital Focus recommended strategies in five different segments; i) Building aware-
ness, ii) Implementing best practices, iii) Standardization and continuous improve-
ment, iv) Integration and alignment, v) Continuous innovation. Then, managerial
development phase is completed.

4 Illustrative Analysis and Reporting

The developed digital maturity assessment model: “Blue Digital Focus” is presented
to the use of the ship management companies by developing a web-based interface.
To illustrate the model, a sample database for 50 ship management companies, given
in Table 2, is studied. Followingly, to demonstrate digital capabilities of the ship
management companies, we conduct analysis and reporting respect to the digital
maturity self-assessment results.
Str.: Strategy, Org.: Organization, Cust.: Customer, Tec.: Technology, Opr.: Oper-
ation, Inn.: Innovation, CTM: Crew & Training Management, TM: Technology
Management, OM: Operational Management, HM: HSQE Management.
The defined maturity level for each dimension help the ship management compa-
nies to identify their existing position in digital transformation and helps to define
deficiencies in an area that may adversely affect the overall effectiveness of trans-
formation efforts. Additionally, the defined target maturity level for each dimension
guides the ship management companies to define appropriate actions and initiatives
in each dimension to establish a recommended path towards improvement. Also,
among the results obtained with self-assessment, the digital maturity levels of all
processes in process improvement dimension are also analyzed. To illustrate the
analysis, Fig. 4 illustrates a sample strengths and weaknesses of ship management
company in process improvement dimension while Fig. 5 shows existing and target
situations.
After the company-based analysis, the distribution of the companies was made
according to their maturity levels for each digital maturity dimension. In Fig. 6, the
distribution of the companies in strategy dimension is presented. As seen from Fig. 6,
6 of the companies participating in the maturity assessment do not have a strategy
related to digital transformation. On the other hand, the remaining 44 companies
have a digital transformation strategy at different levels.
Digital Maturity Assessment of Ship Management Companies … 549

Table 2 Sample database of 50 ship management companies

Company Str. Org. Cus. Tec. Ope. Inn. CTM TM OM HM
C1 4 2 3 3 3 3 3 3 3 2
C2 2 1 2 2 1 0 2 2 3 0
C3 1 2 2 3 2 2 2 2 2 1
C4 0 1 1 1 1 0 1 1 1 2
C5 2 1 2 2 2 2 1 1 2 2
C6 1 2 1 3 2 2 2 2 2 3
C7 1 1 0 1 2 1 1 1 0 1
C8 2 2 1 2 2 2 2 2 3 2
C9 4 4 4 4 4 3 4 5 4 4
C10 0 0 2 2 1 2 0 2 1 2
C11 0 0 2 0 0 0 1 1 1 0
C12 1 1 1 1 2 1 1 0 1 0
C13 3 2 2 3 3 3 3 2 3 3
C14 3 3 3 3 2 2 2 2 3 2
C15 2 2 1 2 1 1 0 0 2 0
C16 3 4 3 4 3 3 4 4 4 4
C17 2 2 1 3 3 2 2 2 3 2
C18 3 3 3 3 3 3 4 4 3 3
C19 2 3 2 3 3 3 2 2 3 2
C20 0 1 2 2 1 2 0 0 1 2
C21 1 1 1 2 2 0 0 2 3 2
C22 1 2 2 3 3 2 2 2 3 2
C23 3 3 1 3 2 1 2 2 2 3
C24 2 2 1 1 1 1 1 1 0 1
C25 4 3 4 3 3 2 3 3 3 3
C26 2 2 0 0 1 2 1 0 2 1
C27 3 2 2 3 2 3 3 3 3 3
C28 2 3 3 3 3 2 3 3 3 2
C29 2 3 2 2 3 1 2 2 2 0
C30 1 1 0 1 2 1 1 1 1 1
C31 2 2 2 3 3 2 3 3 3 3
C32 1 2 1 2 2 0 0 1 0 1
C33 1 1 0 0 2 1 0 1 2 1
C34 3 3 4 4 4 4 4 4 4 4
C35 4 4 3 4 4 3 4 4 4 4
C36 0 0 1 1 0 2 0 2 1 0
(continued)
550 K. Cicek et al.

Table 2 (continued)
Company Str. Org. Cus. Tec. Ope. Inn. CTM TM OM HM
C37 3 2 3 3 2 2 3 3 3 2
C38 2 2 2 2 2 1 3 1 3 2
C39 4 3 3 4 3 2 3 4 3 3
C40 1 1 2 2 1 1 1 1 1 2
C41 3 3 3 4 3 2 2 3 3 3
C42 3 4 4 4 5 4 4 5 5 5
C43 2 1 1 1 1 1 1 0 2 1
C44 1 2 2 3 2 2 2 2 2 0
C45 2 3 2 3 3 2 2 3 3 3
C46 1 1 1 1 2 1 2 1 2 0
C47 0 1 2 2 0 2 0 2 1 1
C48 2 1 2 1 1 0 1 2 2 2
C49 2 2 1 1 1 1 2 1 1 1
C50 2 2 2 3 1 0 1 1 2 1

Fig. 4 Strengths and weaknesses of ship management company in process improvement dimension
Source Figure produced by authors

As seen from Fig. 7, in Organization dimension, while only 3 of the companies

do not have any action, 14 companies have digital maturity at the initiated level, 18
companies at the enabling level, 11 companies at the integrated level and 4 companies
at the optimizing level.
Digital Maturity Assessment of Ship Management Companies … 551

Strategy
5
HSQE Management 4.5 Organisation
4
3.5
3
2.5
Operational 2
1.5 Customer
Management 1
0.5
0
Technical
Technology
Management

Crewing & Training

Operations
Management
Innovations

EXISTING TARGET

Fig. 5 Maturity levels of the dimensions for ship management company-1 Source Figure produced
by authors

18 17

16

14
12
12
10
10

8
6
6 5

2
0
0
NOT DEFINED INITIATED ENABLING INTEGRATING OPTIMIZING PIONEERING

Fig. 6 Distribution of the ship management companies in the Strategy dimension Source Figure
produced by authors

According to the Fig. 8, it can be said that the distribution in the customer
dimension is very similar to the distribution in the organization dimension.
In the technology dimension, it is seen from Fig. 9 that the digital maturity level
of the ship management companies is higher than the other dimensions and 18 ship
management companies are at the integrating level.
552 K. Cicek et al.

20
18
18

16
14
14

12 11

10

6
4
4 3

2
0
0
NOT DEFINED INITIATED ENABLING INTEGRATING OPTIMIZING PIONEERING

Fig. 7 Distribution of the ship management companies in the Organization dimension Source
Figure produced by authors

20 19

18

16
14
14

12

10 9

6
4 4
4

2
0
0
NOT DEFINED INITIATED ENABLING INTEGRATING OPTIMIZING PIONEERING

Fig. 8 Distribution of the ship management companies in the Customer dimension Source Figure
produced by authors

As seen from Fig. 10, unlike other dimensions, it is seen that the digital maturity
level is at the highest level in the operations dimension of 1 company. On the other
hand, 3 of the companies do not have any action in terms of operations.
In Fig. 11, in the innovation dimension, it is seen that 7 of the ship management
companies don’t have any action, 13 of the ship management companies at initiated
level, 20 of the ship management companies at enabling level, 8 of the companies at
integrating level and 2 of the companies at optimizing level.
Digital Maturity Assessment of Ship Management Companies … 553

20
18
18

16

14
12
12
10
10

8 7

4 3

2
0
0
NOT DEFINED INITIATED ENABLING INTEGRATING OPTIMIZING PIONEERING

Fig. 9 Distribution of the ship management companies in the Technology dimension Source Figure
produced by authors

18 17

16
14
14
12
12

10

4 3 3

2 1

0
NOT DEFINED INITIATED ENABLING INTEGRATING OPTIMIZING PIONEERING

Fig. 10 Distribution of the ship management companies in the Operations dimension Source Figure
produced by authors

As of digital maturity level in process improvement, while general overview of

the ship management companies displays relatively low and similar distribution in
HSQE, Crew & Training, and technical management, have higher level in operational
management.
As seen in Fig. 12, 8 of the companies has no action in order to improve process
of Crew & Training Management. 12, 15, 9, and 6 of the companies are at initial,
managed, defined, and integrated level, respectively. Besides, no company is in level
of digital-oriented.
554 K. Cicek et al.

25

20
20

15 13

10 8
7

5
2
0
0
NOT DEFINED INITIATED ENABLING INTEGRATING OPTIMIZING PIONEERING

Fig. 11 Distribution of the ship management companies in the Innovation dimension Source Figure
produced by authors

16 15

14
12
12

10 9
8
8
6
6

2
0
0
NOT DEFINED INITIAL MANAGED DEFINED INTEGRATED DIGITAL-ORIENTED

Fig. 12 Distribution of the ship management companies in the crewing & training management
dimension Source Figure produced by authors

Maturity level of the 2 companies in Technical Management, as seen in the Fig. 13,
is at digital-oriented level. 5 of the companies is at integrated level, 8 of defined, 17
of managed, 13 of initial, and 5 of not defined levels.
As per operational management level of the companies presented in Fig. 14,
most of companies, except 3 of them, have been attempt to improve own operational
process. 10 of the ship management companies are at initial level, 13 of the companies
are at managed level, 19 of the companies are at defined level, 4 of the companies
are at integrated level, and one of them is at digital-oriented level.
Digital Maturity Assessment of Ship Management Companies … 555

18 17

16

14 13

12

10
8
8

6 5 5

4
2
2

0
NOT DEFINED INITIAL MANAGED DEFINED INTEGRATED DIGITAL-ORIENTED

Fig. 13 Distribution of the ship management companies in the technical management dimension
Source Figure produced by authors

Operational Management
20 19

18
16
14 13

12
10
10
8
6
4
4 3

2 1

0
NOT DEFINED INITIAL MANAGED DEFINED INTEGRATED DIGITAL-ORIENTED

Fig. 14 Distribution of the ship management companies in the operational management dimension
Source Figure produced by authors

In the Fig. 15, maturity level of the companies in HSQE management dimension,
one of the companies has been reached to digital-oriented level, whereas 8 of the
companies remain the lowest level. The other 11, 16, and 10 companies are in the
level of initial, managed, and defined, respectively.
After examining the distribution of companies according to each digital maturity
dimension, the digital maturity scores of the companies were calculated and presented
in Fig. 16. As can be seen from the related figure, the score of the company with the
lowest digital maturity score was calculated as 0.5, while the score of the company
with the highest digital maturity score was calculated as 4.3.
556 K. Cicek et al.

HSQE Management
18
16
16

14

12 11
10
10
8
8

6
4
4

2 1

0
NOT DEFINED INITIAL MANAGED DEFINED INTEGRATED DIGITAL-ORIENTED

Fig. 15 Distribution of the ship management companies in the HSQE management dimension
Source Figure produced by authors

4.3
4.0
3.8
3.8
4

3.6
3.2
3.2
3.1
2.9
2.9

3
2.7
2.7
2.7
2.6
2.6
2.6
2.5
2.5
2.2
2.2
2.2
2.0
2.0
2.0
1.9
1.9
1.8

2
1.7
1.5
1.5
1.4
1.4
1.3
1.3
1.2
1.2
1.1
1.1
1.1
1.1
1.1
1.1
1.0
1.0
0.9
0.9
0.9
0.9

1
0.7
0.5

Fig. 16 Digital maturity scores of ship management companies

Finally, the overall averages of the companies in each dimension were examined
and presented in Fig. 17. As a result of the examination, it is seen that the ship
management companies got the lowest score with 1.700 points in the innovation
dimension. Afterwards, they got the second lowest score in the crewing & training
management dimension with 1.860 points. On the other hand, ship management
companies had the highest score in the technology dimension with 2.320 points.
Companies got the second highest score in the operational management dimension
with 2.280 points.
Digital Maturity Assessment of Ship Management Companies … 557

HSQE Management 1.880

Operational Management 2.280

Technical Management 2.020

Crewing & Training Management 1.860

Innovations 1.700

Operations 2.100

Technology 2.320

Customer 1.900

Organisation 1.980

Strategy 1.920

0.000 0.500 1.000 1.500 2.000 2.500

Fig. 17 Average digital maturity scores in dimensions

5 Conclusion and Discussion

The increase in digital transformation needs in the maritime industry is remark-

able. In this process, shipping companies play the leading role as key stakeholders.
Besides shore-based organizational development with excellent communications
among divisions, process improvement is considered as an important element of
digitalization. At this insight, a digital maturity assessment is the first stage work of
digital transformation identifying existing situations and prerequisites of the targeted
achievements.
This chapter offers Blue Digital Focus to conduct digital maturity analysis of ship
management companies. It follows a self-assessment approach in both executive
and managerial phases. The first phase has a holistic structure and is applicable to
other maritime organizations as well. It investigates the organizations along with the
strategy, organization, customer, technology, operations, innovations dimensions. On
the other hand, the managerial development phase of Blue Digital Focus concentrates
on the key processes so that the approach is customized. In this cycle, the processes
under the responsibility of core divisions such as crewing & training, technical,
operational, and HSQE are involved. Then, an illustrative case study is conducted
on a randomly assigned sample database to test and demonstrate the model.
The illustrative results obtained with the implementation of the digital maturity
assessment model proposed in the study by ship management companies contain
valuable information. So much so that, the results obtained reveal the strengths and
weaknesses of companies in each digital maturity dimension. In this way, the compa-
nies can experience which digital maturity dimension/s they need to take special
actions. In addition, when the average digital maturity scores of the companies for
each digital dimension are examined, it is possible to see the actions that should
558 K. Cicek et al.

be taken in the sector. According to the the average values, it can be said that ship
management companies have weaknesses in innovation dimension and therefore
they are insufficient in providing digital services that can produce benefits for their
customers and interested parties. On the other hand, ship management companies
have a higher average value in technology than other dimensions. Although ship
management companies, which have an average value in technology dimension, use
technology successfully in the management of business processes, they need to think
more about developing services that their customers can benefit from.
Consequently, Blue Digital Focus supports awareness and accelerates the strate-
gies throughout digital transformation of ship management companies. The tailor-
made assessment structure enables an accurate data collection from responders
to publish reliable results. Considering the digital maturity levels predictions (i.e.
initiated, developing, defined, integrated, optimized), the strategies on awareness,
best practices, standardization, continuous improvement, integration, innovation are
recommended. The utility of follow-up actions, progressed by relevant managers,
promotes the digitalization potential of ship management companies. In addition,
self-assessment practice is also expected to contribute managerial development in
the companies. Indeed, this study will also bring a new understanding to the terms
of C-level executives in ship management companies in future perspective.
Furthermore, there is a need for additional efforts on increasing the visibility of
Blue Digital Focus. An interactive platform supported with company-based digital-
ization survey visits will be useful. Future studies might include the use of statistical
learning analysis in digital maturity reporting in case the collected data reaches a
sufficient level.

Acknowledgements This book chapter is produced from an initial phase of research project
entitled “STB 073033-Blue Digital Focus (2021–2022)” which has been executed by Blueana-
lytica Maritime R&D and Information Technologies Inc. at Teknopark Istanbul Cube Incubation
Center. The authors acknowledge to the Turkish Chamber of Shipping for their industrial leadership,
collaboration and financial support.

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