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Digital Transformation Success: Why Measuring Key KPIs Matter

Digital Transformation Success: Why Measuring Key KPIs Matter
Digital Transformation

Digital Transformation Success: Why Measuring Key KPIs Matter

According to a Forbes report, executives say the top benefits of digital transformation are improved operational efficiency (40%), faster time to market (36%) and the ability to meet customer expectations (35%). As all these factors contribute to better RoI, executives focus on investing in digital transformations. 

But how do you measure the success of digital transformation initiatives? As digital transitions are long haul, attaining immediate outcomes is impossible and analyzing the performance and progress of the initiatives matters. If you’re a C-level executive looking for a solution to this persistent problem, this post is exclusively for you. 

There are too many things to measure and focusing only on the realistic KPIs will help you understand the progress and success of the initiatives planned. 

A common mistake most executives make when measuring success is overlooking the critical parameters: of the many, ensuring why your business needs digital transformation is quintessential. Without a need for digital transformation, there is no point in carrying out such an expensive and time-consuming program. 

Next comes the measuring part. 

No companies can have the same ways of measuring success and the metrics differ between organizations. KPIs are mostly organization-specific and one list will not work for another company. 

Here are some of the ways you can set up KPIs for measuring your digital business transformation success. 

Find out where you are now. 

This is an important KPI and without a baseline, you can’t compare success. Many companies overlook this step and find it extremely difficult to realize the success rate. Baseline metrics are important KPI as they help you visualize the progress of the transition. 

Have a clear objective of where you want to go.

Having a clear objective of where you want to go will help track the progress and analyze whether the entire program is inclining towards it. With no goals in mind, carrying out a digital transition could hurt your business rather than helping. 

Guide to Digital Transformation Success(whitepaper) (1)

 

Have a definite digital transformation strategy 

Developing a well-defined digital transformation strategy is important as there might be several roadblocks that might derail the program. Digital transitions involve a lot of things including stakeholders of your company. So make sure you’ve the right strategy in place to achieve better results. Partnering with the right digital transformation experts is recommended by many as it reduces the onus on the CEO’s shoulder. 

Determine what needs to be measured.

As discussed above, this can be tricky as KPIs vary among companies. 

Below are some of the KPI that can be measured during your digital transformation implementations. 

Digital advantage

The ultimate idea behind digital transitions is extracting the maximum benefits out of digital solutions and this makes this as an important KPI. You can measure the below parameters to check the progress. 

  • Improved branding
  • Digital maturity among every stakeholder
  • Revenue attained through digital channels
  • Involvement of all departments for digital initiatives

Customer experience

A major benefit of running a digital program is to improve customer experience. Ensuring whether your customers are using the channels effectively is a critical metric. You can measure the below parameters to check the progress. 

  • Customer acquisition rate
  • Customer touchpoints
  • Customer engagement
  • Faster time to market
  • Customer behavior study

Return on Investment

Any business investment always focuses on RoI. Digital transformation involves a lot of money and years to implement. So, analyzing the progress at every point is a must to ensure your RoI is increasing. 

  • Revenue from new solutions/products released
  • Revenue from new digital implementations
  • Revenue new digital products in the market
  • Revenue from new strategy and business models

 Measuring all these KPIs would help your business understand the project’s progress and success at every point. Keeping the KPIs simple will help leaders track the digital transformation success seamlessly and effectively.