Despite all the talk about digital transformation, it’s surprising how few CIOs have a strategy in place for tracking their success in this arena. Because of the shortage of metrics used for gauging how the digital transformation is going, analysts are saying this lack of preparedness is going to be a detriment to CIOs.
Digital key performance indicators (KPIs) are great tools for determining if your digital transformation efforts are producing any results. However, in order to measure them, you have to first define them. For example, if you haven’t fully embraced how you want to make the transformation, you haven’t fully defined what it is you want to measure with KPIs.
Getting Started with Strategy
There has to be a company-wide buy-in if you’re going to build a good KPI strategy, which means you need to work with senior executives to help quantify the scope of how digitalization will work for your company.
The conversation will help to identify the KPI goals you will need to realize better business outcomes. The goals should be crystal clear and easily quantifiable. Some of the KPIs might be transitional, so be flexible in how you determine your goals.
Know what reaching a goal will mean for future operations. If you say you want to hit a specific goal in six months, what’s the goal going to look like in 12 months? Remember, goals can change over time, so don’t fall prey to early planning that is not scalable.
Choosing Your KPIs
There are two categories of KPIs that most organizations target: how the current business model is being digitalized; and the benefits you’re seeing from that digitalization.
In the first set, you’re measuring goals in areas like customer service, marketing, sales, and operations. In the second, you’re looking at market share and growth. You can basically use margin metrics that allow you to see beyond just the physical assets.
Some industries will be focusing more on their revenue through the web and mobile apps. Looking at sales from self-service channels is certainly a strong KPI for companies that are trying to evolve, so they’ll want to measure the number of times they’re making contact with consumers in that way.
At ACR Solutions, we have a number of solutions that can assist you with your digital transformation. We take the pain out of the process and provide you with the information you need to see how your transformation is working for you. If you’re ready to simplify the process of measuring success, contact us today.