Digital Competency Maturity Model 2.0 for Accounting Firms - Overview and Implementation

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The Digital Competency Maturity Model 2.0 (DCMM 2.0) is a framework designed to help professional accounting firms evaluate and enhance their digital competencies. Released as an upgrade to the previous version in 2017, DCMM 2.0 offers a structured approach for firms to assess their current level of digital maturity, identify areas for improvement, and create a roadmap for enhancing digital competency. The model includes a questionnaire covering various dimensions of digital maturity and provides practical tips for firms to progress towards higher levels of digital competency, emphasizing the adoption of advanced and emerging technologies. Firms can leverage DCMM 2.0 to stay ahead in the digital era, prepare for future regulatory changes, and optimize their use of digital tools and automation.

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Digital Competency Maturity Model -2 (DCMM-2.0) z CA Sanjay Jain Partner : J Jain & Company

zAgenda What is DCMM 2.0 How to Use DCMM ? Digital Tools

z DCMM 2.0 Lunch in the Year 2019 Short Video Presentation https://www.youtube.com/watch?v=57U0nFLvVqo&list=PPSV

z Background Digital Competency Maturity Model (DCMM) for Professional Accounting Firms Version-1.0 was released in 2017 Provide a set of minimum requirements which firm can evaluate on a self assessment basis. Build a strategy for up skilling , to leverage the opportunity which will unfold in digital era.

z DCMM 2.0 Vs DCMM 1.00 Discipline specific categorization based on the firm s profile for assessing its digital competency with respect to level of automation. New Section on Adoption of Advance and Emerging Technologies , which encourage firms to embrace emerging technologies and get ready for the future digital landscape. Includes details Implementation Guide to help accounting firms with practical tips on moving to the next level of digital Competency.

z DCMM 2.0 DCMM Version 2.0 comprises a questionnaire that enables firms to rate their current level of maturity on digital competency, identify areas where competencies are strong or lacking, and then develop a road map for achieving a higher level of maturity. DCMM Version 2.0 includes the following dimensions of digital maturity organized into sections

z Why DCMM CA Firms Digital Competency for level of Automation Get ready for future New Data Protection Bill IT Act 2000/2008 becoming new Law CA s must be conversant with Level -1 Firm at nascent stage need steps to upgrade Level-2 firms has made some progress in terms of adopting new technologies need to fine tune to reach 3 Level 3 firm has made significant adoption of digital technologies and to focus optimizing emerging technologies like AL and Block chain etc. Will be useful for Peer review DLH portal certificate.

z Overview of the DCMM 2: Section A: Level of Automation of Firm s Internal Processes Usage of IT by the firm for its own internal process i.e billing , documentation , client relation , staff management and attendance, cyber security. Section B: Availability of Qualified Resource Pool and Talent Development Relating to Digital Competencies. Attracting , retaining and developing staff with requisite qualification and skills.

z DCMM 2.0 Section C Discipline specific Categorisation C1 Audit C2 Tax and Compliances. C3 - Accounting and support function C4 - Other Management Consulting Services. Section D: Adaptation of Advanced and Emerging Technologies

z Assessment Results Level -1 Firm indicates that the firm is in very nascent stages of adopting digital technologies but will have to take immediate steps to upgrade its digital competency or will be left lagging behind. Level 2 Firm indicates that the firm has made some progress in terms of adopting digital technologies but will have to fine tune further to reach the highest level of digital competency. Level 3 Firm indicates firms which have made significant adoption of digital technologies and should focus on optimising it further to be in the forefront of use of emerging technologies like, Artificial Intelligence and Blockchain.

z Walk Through of Implementation Guide DCMM 2 includes implementation guides along with assistance in the form of Clues to improve Rating. Practical based questions Implementation clues helps /guide us how to improve Rating

z DCMM Road Map for Moving Up the next level of Maturity Step 1 Benchmarking Benchmarking the current maturity level of the firm by completing the DCMM, and documents list of specified aspects that the firm is currently lacking and which need to be initiated to move the next level of maturity model. Step 2 Planning Initiatives Convert the initiative to be taken into an actions plan with timeline Quarterly / Half yrly or yearly. Step-3 Identifying Resources and Execution Plan Step 4 Perform a peer review /review by external firm if necessary.

z Improving to Next Level Based on finding from benchmark Identify the results from DCMM 2 and identify for improvision , automation, and process improvement Refer implementation guide for improvements. Identify the requirements tools process and skills for reaching to next level Involvement of Partners/Proprietor is needed . Involve some of your team member who look into DCMM process .

z Priortizing Based on results , lots of things needs improvements and that needs to be prioritizing based on the need and available resources of the firms. Cost Benefits analysis Prioritizing based on urgencies and importances.

z Bandwith Assess the Firm s bandwidth based on the priorities and available resources including time Identifying Gap Firm prioritization in fixing IT resources required Vendor and Products pricing Time Involment

z Case Study M/s Case Study , a CA Firm done self evaluation of DCMM and identified following areas, which need improvements Section A: Non Availability of Corporate email ids. No Structure of Leaves management No centralized server system No Structure Backup System No time sheet system in place No Mobile Device Management policy No IT Policy

z Digital Tools to have Practice management Software , Thawk , ICAI Free software , IFIRM etc Documents Management System KDOC , Back up software , Communication Tools Like email drive sharing etc, Zoom , Team and many more.