Starting the process of digital transformation in your organization is exciting. Measuring the success of your digital transformation? That can be a challenging task. According to IBM, 84% of companies fail to achieve digital transformation. That is, in large part because they aren't keeping tabs on their efforts. It's common for companies to get caught up in launching their digital transformation plan. Then, selecting and measuring KPIs becomes an afterthought.
We know that successful digital transformation projects require a specialized combination of accelerating innovation, anticipating change, and outpacing demands. When these elements come together, you're able to execute your vision and future-proof your business model. Want to take a closer look at how to maximize the value of your efforts and determine your ROI? Here's how to measure the success of your digital transformation.
Defining your objectives: What is success
It's essential to define your digital transformation objectives. To make sense of your results, you need to compare them against the goals you set. This means that before you even begin walking through the steps of digital transformation, you need to dig more into the "why" behind this change and what you expect the outcome to be.
For example, according to one survey, 67% of respondents say creating a better customer experience was a key objective for an organization's digital business strategy. Having a clear objective like this one is what truly drives success. It isn't just about implementing new systems or getting up to speed. It's about real, meaningful business outcomes.
From there, it becomes much easier to decide what you need to measure. When you have a process for monitoring your digital transformation progress and identifying any weak points that may exist, it’s possible to correct things along the way. That leads to greater organizational transformation and success.
Understanding total cost
One of the most critical things you must do to measure the success of digital transformation is gain an understanding of all costs involved. Not just for implementing the technology, but training your team on it as well. Keep in mind it's easy to measure costs when looking at things like new software. It can be more challenging to factor in the time it takes to integrate those tools into your organization.
You'll also need to consider any additional expertise or talent you may need to bring in to supplement your existing team and help you reach your goals. This is an investment, but ultimately it can help you speed up the digital transformation process as a whole and accomplish your objectives faster.
Usability & adoption
Digital transformation isn't just about technology. The truth is, digital transformation changes the way organizations operate and create value. Of course, the tools and tech are great, but companies need to ensure they're educating and empowering employees along the way. Are employees leveraging new systems and processes? How does that impact their work?
If your employees are using and embracing the systems you put in place for them, you're on the right track. If you're seeing low user adoption you may need to take a step back. If there are members of your team that aren't leveraging the new technology, or customers aren't getting as much value as they could be out of it, the success you can achieve is limited.
Each digital investment that is made should support the larger goals of your existing business strategy. If you've invested in other tools in the past, you may have seen an increase in organizational complexity, which can actually make it more difficult for people to do their jobs. Digital transformation can put an end to that. It's all about combining technology with the right strategy to move you towards your goals. You won't be adding new tools just for the sake of doing so.
Ideally, your team wouldn't simply be using the new technology. It would also help them work more effectively. It would make it easier for them to get the information they need or connect and collaborate with each other. These are the types of changes that make an impact on a daily basis, and the value of them grows over time.
To see if this is happening in your organization, measure any increases in productivity. Has this project freed up employees, allowing them to spend time on more meaningful tasks? Can they get things done faster than they did before? If yes, consider that a success. If you aren't seeing changes in productivity, it could be a sign that some of the things you put in place aren't addressing the right needs for people on your team, or they may not be using them effectively.
Just like measuring productivity, you can measure how much your digital transformation directly impacts the bottom line. Companies that have implemented a digital transformation strategy report higher profits and greater employee engagement than other companies. In fact, 45% of companies that report a positive business impact of digital transformation also reported higher net revenue growth.
Internally, you can see how various digital tools support efforts to bring in more business. You can also look at customer feedback and retention to see if you were able to keep customers that may have been at risk of churning prior to any changes related to your digital transformation.
Beyond the bottom line
While many of the things we mentioned above are easy to measure, much of your success may not be obvious right away. Digital technology is always evolving, and there are great benefits to a company becoming more digitally mature, like improved customer experience and better organizational agility. Successful digital transformation empowers organizations by giving them the ability to quickly change or adapt to changes in the market. That means that by embracing digital transformation, your organization is open to possibilities for growth that you may not even be aware of today.
The importance of continuous measuring in digital transformation initiatives
Digital transformation is an ongoing process. You have to keep measuring to ensure that you stay on track and identify any pitfalls. This will help you understand what factors impact ROI, so you get a more accurate picture. Continuous monitoring also makes it easier to address any issues before they cause chaos.
Are you looking for digital transformation consulting services?
Building a successful digital transformation strategy doesn’t have to be a challenge. With the right support and expertise, you can adapt to change and outpace evolving demands. Ready to start the process for your organization. We can help. Unosquare is a trusted partner for these projects. Using our proven Distributed Agile Framework, our software development engineers provide the kind of external perspective, agility, and understanding required for real innovation.
When you partner with Unosquare, you’ll have access to highly skilled software development professionals, Business Analysts, SCRUM Masters, Quality Assurance Engineers, and all the ancillary roles for the delivery of your strategy. Each of us at Unosquare is directly accessible to your project stakeholders. We also live and work in your time zone, and have the support and training from one of the best global software development companies in the world. To learn more about what we can do for your organization, check out our blog.