Digital transformation is evolving to keep up with dynamic enterprise needs. This also results in a shift in digital transformation metrics. Digital marketing framework transformation was forced upon many organizations that are previously running away from it. Some of them were not even prepared for it. The core objective for enterprises was to survive during these turbulent times. Due to this, most companies shifted their focus from growth-focused metrics to cost and resilience-based metrics
Many businesses have no choice but to implement digital transformation quickly to stay relevant. Businesses that have done it successfully have gained an edge over competitors who have not. Despite this, most enterprises are still unaware of the digital transformation metrics they need to track in order to monitor where they stand in their digital transformation journey and where they need to go.
In this article, you will learn about eight key metrics you need to track in order to achieve success with digital transformation.
8 Key Metrics You Need To Track For Successful Digital Transformation
Here are eight digital transformation metrics you should keep an eye on.
1. Employee Experience and Productivity
One of the most important digital transformation metrics which can have a huge impact on the success and failure of your digital transformation efforts is employee experience and productivity. If your employees are struggling and not having a great time at work or failing to deliver the best results as far as productivity and efficiency are concerned, then there is no point in digitally transforming your business.
The primary objective of digital transformation is to increase productivity and provide employees with a suitable working environment where they can showcase their skills and talent. With the remote work trends sweeping across workplaces, workers have become more distributed and flexible. Businesses are diverting their investments towards improving the employee experience, which can also result in a productivity boost.
2. Business Value Realization
According to Prashant Kelker, partner at ISG, a technology research firm, “What was originally a large-scale transformation turned into continuous transformation and this got reflected in the metrics. So, in a sense, one-time transformation metrics have morphed into continuous-transformation metrics.”
He further adds, “Before COVID, the world was already contemplating a move from project-thinking to product-thinking. The pandemic has hastened this – we have multiple clients who are now interested in aligning, earmarking, allocating, and spending budgets in line with the product-aligned agile delivery.”
3. Cloud Processes
The pace at which the business world forces businesses to move faster. That is only possible if you have native cloud-based tools and automation at your disposal. Start off by designing your processes in the cloud from start to finish and bring continuous improvements to them with feedback from humans.
When you have end-to-end cloud processes that stretch across the enterprise, it gives you the opportunity and ability to respond to market changes quickly and efficiently. The faster you can respond to those changes the better off your organization will be in the future.
4. AI-Based Business Processes
Automation is an integral part of digital transformation and artificial intelligence is at the forefront of this revolution. One of the biggest problems with artificial intelligence and machine learning-based processes is scalability. If you can scale those automated processes, you can achieve success with digital transformation.
Ask yourself how many of your critical businesses are using AI? If the number is lower, try to increase it. Businesses that have already embraced MLOps and AIOps are the ones that are going to thrive in future. As we see these technologies mature, more businesses will adopt them.
Both businesses and people are experiencing a financial crunch. With less money at their disposal, they are looking for cheaper alternatives to existing products and services. This means that they are willing to try new products and services. This can be a great opportunity for new businesses to capitalize on but it also means that customer loyalty will become a thing of the past. That is why it is imperative for brands to keep an eye on their conversion rate.
6. Innovation Brought To Market
When you are digitally transforming your business, you should be able to bring new and innovative products and services faster to the market. Thanks to data, you can not only identify but also take advantage of new opportunities. Make sure that the products and services you are bringing to the market deliver value to your customer. Don’t introduce new products and services for the sake of it.
Many businesses are adopting digital transformation to achieve ambitious sustainability goals they have set for themselves. Even those who have not set these sustainability targets will be forced to do so by strict sustainability reporting and regulation coupled with industry pressure. Even the changing consumer behavior and increased supplier monitoring are forcing businesses to take sustainability seriously. That is why it is important to track your sustainability metrics. All this will directly impact the way you look at or approach sustainability.
Nitish Mithal, Vice President of Everest Group said, “This will include their technology footprint (across infrastructures such as cheap dedicated server hosting, apps, and data), as well as developing platforms to track and report sustainability for customers and markets.” He further adds, “There’s a whole new set of tooling emerging to help organizations monitor and optimize their sustainability investments.”
8. Customer Awareness and Reach
Last but certainly not least digital transformation metric you must measure is customer awareness and reach. It is important for businesses to know how their customers are finding them, where they are finding them and how they come to know about their products and services.
According to Matt Johnson, Director of product and experience lab at West Monroe said, “With so many digital channels available for discovery and people’s willingness to try new brands at an all-time high, the competitive landscape is changing daily. Monitoring where, how, or if people are finding you and adjusting strategy and tactics based on those results will be important in this year’s competitive digital market.”
Which digital transformation metrics do you track? Share it with us in the comments section below.