Success in digital transformation has always been difficult to measure, partially due to the fact that the goals and objectives are always evolving. Last year, survival was the fundamental criterion for success.
As businesses recover from the effects of the pandemic, the measurements of success (and how they are used) should be changed. IT leaders should reassess these metrics, or they might mistakenly believe that their panic reaction and survival through digital technology is a triumph. This can cause an array of problems in the future.
When it comes to upgrading digital transformation indicators, where should businesses begin? They should start with how the IT organization aids in the achievement of business objectives.
4 takeaways from digital transformation metrics
IT leaders can utilize some hard-won knowledge to figure out how to evaluate the success of their digital transformation programs in the future. Some have already been accepted as gospel – like the simple uptime or availability statistics have given way to more complex value measurements such as usability, processing speed, and correctness. Others are a little more subtle.
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Let’s take a look at some of the more surprising digital transformation analytics lessons learned.
It’s not enough to pay off technical debt
According to business experts, confusing transformation with debt repayment is a common mistake. These two concepts are logically linked since organizations that were not established in the digital era have years of technical debt that hampers their capacity to stay up with their digitally native industry contemporaries. Too often, these businesses use the term “digital transformation” as a way to get money to replace legacy technical debt.
It’s a crucial first step, but it’s just the beginning. Businesses should have sponsorship and business engagement in order to transform. It can be fueled by technology, but the company should be willing to change critical business processes or reimagine commercial transactions in the markets it serves.
Integrating cybersecurity is essential
Many CEOs have long regarded cybersecurity as an expense to be managed. Today, however, the understanding that cybersecurity should be a part of every conversation is more widespread than ever. Regulations, which are now in place in many nations, are pushing organizations to be more accountable, making them liable for damages to customers, citizens and others. As a result, technology leaders should factor cybersecurity into their digital strategies and ROI calculations.
The digital transformation strategist can establish an early partnership with the cybersecurity organization and incorporates them into the company and technology at all levels. This integration enables cyber-experts to design and interpret cyber policies from a business perspective.
The business value chain is crucial
IT leaders should also consider the whole scope of digital transformation initiatives. To drive transformation, some organizations step into the midst of the value chain. However, doing so can increase pressure upstream and downstream, resulting in unnecessary confusion and strain.
Understanding the end-to-end value chain is critical, as is being selective when pursuing great business outcomes that can have a detrimental impact on other areas of the company. When producing constructive disruption, businesses need to be selective and allow it to push downstream only in the value chain when possible.
Assess digital abilities
Companies that value their employees and customers throughout the digital transition will be the most successful as they adjust their business strategies following COVID-19. They should consider indicators like comparing existing staff abilities to skills required to drive digital efforts.
In a tight talent market, IT leaders should also evaluate how they can acquire third-party skills, which are an important aspect in internal capabilities. The digital transformation strategist who succeeds in this area strikes a balance between where he or she obtains the necessary abilities.