Benchmarking

Digital Transformation: How to Measure the Success

If you are about to embark on the digital transformation of your company’s maintenance strategy or operations, then be prepared with the right KPIs. Many CIOs and project managers begin on a digital transformation journey without identifying what to measure. Thus, as many as 70% of digital transformations fail. That is why it is so essential for companies to come up with effective digital key performance indicators. In this article at Forbes, the author recommends you to track these KPIs to get a clearer picture of your digital ROI.

Ways to Measure Digital Transformation Evolution

Customer Retention Value

Retaining customers will help you generate revenue. Another important KPI is the cost of customer acquisition. Ensure that you are not spending more than what you are receiving.

The Number of Hours Saved

As your organization becomes more automated, it is crucial to measure progress and innovation, especially for digital transformation. Though it is difficult to quantify the number of hours saved, you must find a way to track it, measure it, and continuously improve it.

Revenue from Digital Investments

Introduce automation into the customer journey and track how many prospects interacted with the tools and compare how many became paid customers. Digital transformation helps you see how various tools support efforts to bring in more business or improve operational efficiency.

Employee Productivity

To determine whether the digital transformation is improving the productivity of the team, answer the following questions:

  • Is automation providing them with more time for strategic thinking?
  • Are employees able to optimize their hours?
  • Are they able to collaborate more efficiently than before?

Based on the answers, you must determine the overall employee performance, revenue generated per employee, and the number of automated tasks.

Core Value Metrics

Digital transformation is all about implementing sophisticated tools like AI and ML to automate processes. “And as you automate, you will want to hone in on core value metrics, not just the bottom line,” says the author. Besides, you must track efficiency metrics that feed into value.

Every business has a digital journey. Setting the right KPIs that align with business goals will radically improve and optimize many processes while maximizing an organization’s gains significantly. Read the full article by click on https://www.forbes.com/sites/forbestechcouncil/2020/06/25/14-important-kpis-to-help-you-track-your-digital-transformation/#4aa4334b9342.

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