Well, this is often due to two reasons: 1) because they keep on making at least one of these common mistakes, and also 2) because they’re more focused on the process itself (delivering on budget, time and in scope with the requirements) rather than on the results achieved. However, simply delivering a product according to […]
Well, this is often due to two reasons: 1) because they keep on making at least one of these common mistakes, and also 2) because they’re more focused on the process itself (delivering on budget, time and in scope with the requirements) rather than on the results achieved.
If you want to measure the success of your digital transformation, you need to shift your mindset towards the problems that you want to solve. Because what’s the point of having impressive software if it doesn’t actually change anything or falls just short of expectations?
Check the below top 3 ways of measuring success in digital transformation and ensure the transformation of your company is heading in a right direction.
Increased revenue as an indicator of success sounds like a good KPI (and an obvious one), but… there can be many reasons behind a growth in profits, some of which may not necessarily be related to the transformation process. And it can be difficult sometimes to tell exactly what is behind it. That’s why you should make a list of non-financial KPIs, both the external (customer-related) and internal (employee-related) ones.
For example, you may want to measure your success in:
Although these KPIs are not completely centred around money and focus instead on problems that lack solutions, solving these kinds of problems also translates directly into financial success – so you don’t always need to put the latter first.
This is slightly different from setting a regular set of KPIs. Instead of just measuring how much a solution has influenced your organisation, you also define the desired numbers in advance – the minimum that you want to achieve in order to consider your digital transformation successful. All you need to do is go through the following sequence every time you want to introduce an innovation:
This can pertain not only to the digital transformation as a whole, but also to individual parts of it, even the smallest ones, like specific features or changes in your website layout. Remember that while thinking big is great, that doesn’t rule out starting small and growing over time. Actually, it’s just the opposite. Taking things one step at a time pays off – it allows you to make necessary adjustments to small parts of your project, adjust the course, and avoid costly, large-scale changes.
You cannot be stuck in the past and successfully transform your organisation, especially in isolation from the external environment, which is constantly changing. This is why you need to stay up-to-date with the most current customer behaviours. Follow these trends closely, because it may turn out that the problems you’re solving right now have already become marginal, and that there are other, much more urgent issues to handle. Agility is the key to success, both in ordinary tech projects and digital transformations.
So, always make sure that you’re answering relevant user needs. You will know that you’ve succeeded when you get new customers (or retain old ones) through the new services, products or upgrades that you’ve made.
Apart from these three ways of measuring the success of your digital transformation, there are also two other concepts that you should familiarise yourself with – if you want to gauge the effectiveness of your transformation and see where you are in your journey:
Digital maturity measures a company’s ability to create value in the digital sphere; adapt to disruptive environments; respond to changes in the market; and take advantage of technological developments. You should occasionally check on where you are in your digital maturity and see if it is a factor that changes positively over time. There are many models that allow you to track your progress, like this one or that one so just pick the one that suits you best.
Delivery Success Indicators (DSIs) are KPIs that help you monitor projects with greater efficiency. They allow you to measure the effectiveness of your digital transformation as it progresses, so that you can:
Now that you have a better idea of how to approach this, you can engage your internal talents and resources to come up with a plan for measuring the effects of your digital transformation – and then execute it. If you prefer to walk through this step with external specialists take part in our IT Strategy Workshop which is designed to help you work out a high quality IT strategy to achieve your business goals and also come up with a set of appropriate KPIs – the choice is yours.
Take part in a brief, constructive workshop for high-level executives and create a strategy to achieve your business goals.
Source: Future Processing