Digital Transformation Series: Part 9 - "How do I measure my success?"
Welcome to the last act of our 9 part series on Digital Transformation! If you have been following our articles, you would have got a fairly good idea about what Digital Transformation is and what it is not. If not, please find the previous parts of the series here. Now that we have walked through the process of Digitally Transforming a business, let's see what we have achieved. Or in other words, lets measure our progress. Your incentives depend on it, after all! And for you to remember all these when you have your next review, let me put these into four major categories - Customer, Process, Technology & People.
Customer: We have said that Digital Transformation is all about the customer. The questions you need to ask yourself and get answers to are:
What is the rate of new customer acquisition?
What is the cost of customer acquisition?
How many positive customer experiences are there?
What is the % increase in customer engagement through digital channels?
What is the % reduction in time to market new products to customers?
What is the new revenue from Digital Transformation?
What is your customer retention?
Do customers have trouble understanding the process?
What is the brand value in the market?
Process: Transformation is all about changing the way we do things. Ask yourself if your internal processes have improved from all the efforts:
How many business processes are running on new or improved software? What is the adoption rate?
What are the bottlenecks in the user journeys?
What is the time saved in accomplishing tasks? Or rather what is the increase in revenue per employee?
What is the mean time to repair and mean time to detect? Has this improved?
Technology: As you see it is not all about technology. But there are some technology metrics that we need to track:
What is the software license usage? Is it greater than 70%, thereby signalling good adoption?
What is the level of digital maturity across levels? Especially amongst the executive management and the board?
What new digital initiatives have come from different departments?
What is the percentage of enterprise applications that run on the cloud?
People: They say "its all about the people".
What is the improvement in team morale?
What is the rate of innovation - across products, services, business models, technologies and adaptation to new markets?
And always, before you attempt a change, measure - measure to set your baseline, to see where you were before and what you have become after. To give you a better idea, here is the story of a real transformation from our collections. Let us know what you think!
Please feel free to get back to us for questions and comments.