IT Metrics

Digital KPIs: Ways to Define and Measure Success

Digital transformation is a challenging initiative. Though many organizations pursue large-scale change efforts, less than 30% succeed. As many as 70% of digital transformation efforts fail. Therefore, organizations must come up with effective digital transformation KPIs. In this article at MIT Sloan, Brian Eastwood explains the importance of KPIs in digital transformation efforts.

Benefits of KPIs in Digital Transformation

KPIs can drive business strategy and provide a competitive edge. “Better data, combined with better analytics capabilities, should allow enterprises to explore better, and faster, decision-making,” says Eastwood. KPIs in digital transformation efforts augments human decision-making and helps leaders make informed decisions.

Digital Transformation Metrics

Scope of Transformation

Determine what you are aiming to achieve through digital transformation. Analyze if you can reach the global user base. Some metrics examples include organic user acquisition, number of unique visitors, and manual hours invested in the transformation process.

Active Usage

Successful digital transformation demands sustainable adoption of technology. Some examples include conversion rates and abandon rates.

User Engagement

From a user perspective, the technology must be impactful to their jobs. If user engagement is less than expected, it implies that the technology is not valuable enough to switch from their current work pattern.

Risk Factors

Successful digital transformation requires strategic investment in reducing risks associated with technologies. As more organizational assets become digital, leaders must evaluate the risks surrounding cybersecurity and data privacy. Measure:

  • Frequency of access at various privilege levels
  • Number of systems with known vulnerabilities
  • Data transfer volumes

Digital transformation is an exciting journey. As a business leader, you are learning about the performance of your initiative. To achieve success, you must continuously develop, define, and refine the KPIs. Then, effectively communicate how these KPIs will evolve beyond assessment metrics to drive organizational change. To read the original article, click on

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