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