How do we measure performance of digital transformation?

Article written by Mirela Popescu, Manager Ensight Management Consulting

Digital transformation requires a differentiated measurement tools that go beyond traditional financial key performance indicators. How do we measure the success of a digital transformation is still a key question for C suite, as <15% of companies can quantify the return on investment of their digital initiatives.

Key questions to define digital KPIs?

  • What is being measured?
  • Where are we today?
  • What is our target goal?
  • What is our desired business outcome?
  • What is our balance point?

The defined KPIs should work as a leading not lagging indicator, be understood by a non-IT audience and drive action when targets are not meet.

Examples of potential KPIs

  • Customer satisfaction index (CSAT)
  • Net promotor score (NPS)
  • No of customer touch points addressed to improve customer experience positively
  • % increase in customer engagement in digital channels
  • Month-to-month growth in registration
  • Return on Innovation investment (ROII)
  • % of revenue through digital channels
  • Contribution to digital initiatives from each department
  • % of revenue from new products introduced