Your company has finally joined the digital transformation bandwagon. You are wondering if it was not too forward a step for your business. Everest Group’s recent assessment suggests that organizations that have initiated digital transformation are doing well. To measure benefits, they are using easily quantifiable metrics like reduction in process cycle time. These early adopters have also introduced some new measures like improvement in customer experience, response to new offerings, etc. In this article at Everest Group, Cecilia Edwards shares 5 tips on how you should set up the new metrics to measure success accurately.
Digital Transformation Measures
The new metrics are undeniably different from service level agreements (SLA) and key performance indicators (KPI). In IT industry, you must measure business ROIs with KPIs and SLAs. However, these metrics cannot extend their flexibility to digital transformation. In fact, they are quite ineffective when it comes to understanding what the digital customers vie for. So, if you want to measure digital transformation, use the following steps.
1. Set Distinct Business Goals
Set the metrics that will tell you exactly where you need upgrading. To enhance customer satisfaction, you must maintain the current level of experience. Identify the processes you can automate to lower variation in responses and human dependency. For personalized services, use of analytics and data collection of customer’s online behavior will improve search criteria and increase product sale.
2. Make Them Countable
Find a way to measure abstract metrics like customer experience. Sponsors want proofs to understand if the digital initiative is working in favor of the company. You can set up them up to find out the improvement taking place in the time taken to serve end users.
3. How Adopted Are You?
After implementing the technology, you should check how well you have adopted it. Every stakeholder must equally participate in the venture to make it a success. Conduct training sessions, set up a committee to address preliminary hiccups, and open a direct communication forum to reduce resistance from the workforce.
4. Begin Tracking Results
When you are sure that everyone is comfortable with the technology, start measuring with metrics that you recently introduced in the company culture. Bear in mind, you will see positive, quantifiable outcomes only when the adoption is complete.
5. Are You Getting What You Expected?
When you get the quantifiable results, analyze if they are favoring the expected areas of your business. As the digital transformation market is still volatile, it is difficult to keep a stable benchmarking system. Update your systems or processes to be up to speed with the market.
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