Is there a way in measuring digital transformation efforts in your company? If so, what are the metrics to measure progress?
Read on to know more.
Measuring Digital Transformation
Digital transformation is a company-wide effort. And sometimes, they have a hard time seeing their progress. Also, CIOs feel making effective Key Performance Indicators or KPIs is taxing.
Thus, many companies avoid this task. In fact, almost half of those doing digital transformation does not have any metric.
So they can’t see if they made any progress and in which areas they need to better. And that is why the digital transformation failure rate is so high.
But if a company has an effective system for monitoring, they can avoid failure. Because they can see progress and weak points, they can correct it along the way.
This, then, raises the success rate of a company’s digital transformation efforts.
Yet, there is no universal metrics that a company can use. It is not a one-size-fits-all as not every company has the same goals. But there are basic KPIs most companies need to ensure.
Number of Users Versus the Number of Licenses Bought
Companies need to measure the number of licenses they bought. And then compare these to how many employees will then use this software.
This can give companies ideas on the adoption rate of its software investment. For example, if 90% of employees use them, then the software adoption is a success.
But if only 30% adopted the software, then there may be a barrier needed to resolve.
Analyze the Level of Usability
After seeing the number of users, companies will then need to analyze their usage. They need to measure how employees use these new digital tools.
Then, they need to see what perks have the employees gained from using them. So, companies need a solution that lets them see the user journey and analyze it.
With this, they can see where each one has a hard time using. Or which features are used the most or used the least. Then, they can better usability.
Number of Processes Per Software
Aside from measuring adoption and usability, companies need to know the processes. They need to see how many of these can their new software do.
With this, companies can see the value of their new software. If it only makes a few processes, they can rethink if they truly need the software.
Digital transformation should support a company’s broader goals. And this needs to be in line with their business strategy.
And productivity is one key area they need to better. This means the volume or value of outputs versus the time and resources used.
For example, investing in a digital customer support tool. Companies can see productivity levels with how many support ticket employees got.
Digital Investments Revenue
Companies can also measure how much their digital investments affected their revenue. They can compare how much they have made after using the tools versus before.
If they see a rise in revenue, then they can say that their efforts are on the right track.
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