How To Measure Digital Transformation: A Guide For Business Decision Makers

Digitalization or digital transformation doesn’t happen overnight and is a continuous process. But when one attains some of it the prospects of the business enlarge by multi-fold and outputs are easily heightened.

It is important to measure digital transformation progress because 70% of digital transformations either fail or do not fully achieve their intended goals. After all, the digitalization is not done effectively. It is necessary to measure digital transformation to take the right course correction regularly and improve the success rate.

While conventional metrics of revenue, expenses, and consumer satisfaction should all be ranked, businesses should move beyond these quarterly revenues, perimeter guidance and short-term tactical focus. Additionally, to functioning differently, it turns out that digitally determined organisations also use different metrics than their less digitally recognised counterparts. According to various survey reports, many of the digitally distressed haven’t appropriately shifted the way to measure additional success. Alternatively, they often rely entirely on traditional business success metrics, to the elimination of new digital transformation-related metrics that have the capability to deliver more insight to company leadership.

The Board of directors typically seek benefits, costs, and prospects of following a digital transformation plan, or of not doing anything at all. To do this they require a set of key performance indicators (KPIs) to scale digital transformation progress.

To estimate the achievement of a digital transformation strategy, the long-term plan needs to be divided into short projects with distinct KPIs. Usually, traditional indicators of revenue, costs and customer satisfaction are taken into account. However, much more is required. Very broadly these can be additional KPIs to contemplate: