Businesses pursuing digitization require a fully engaged leader to take control and drive real performance gains from their digital investments. This means prioritizing scalable initiatives that can boost the organization’s performance significantly; focusing on fast, minimally viable results that can be improved over time; and, most importantly, monitoring and tracking the value creation and impact of Digital Transformation.
The shift in the digital world will be ongoing. Responsiveness to consumers, staff, ecosystems, and market shifts would be the key competitive differentiators. The return to growth would be the primary objective for most businesses. The priorities of many businesses changed as a result of the pandemic – from growth-oriented metrics to cost-cutting metrics. Now that the United States is on the verge of having a vaccine surplus, the industry is shifting away from cost-cutting strategies and toward aggressive growth strategies.
IT organizations and their business stakeholders must establish key performance indicators that are aligned with new organizational goals. In 2021, some digital transformation KPIs worth considering are as follows:
digital transformation KPIs
Constant business value realization
What began as a large-scale transition became a continuous transformation and this was reflected in the metrics. One-time transition metrics have thus evolved into continuous-transformation metrics.
Metrics tied to business case realization have morphed into continuous value realization, or are in the process of doing so. On-time/on-budget delivery metrics are transforming as a measure of reach versatility. Before the COVID-19 pandemic, the world was already considering a shift away from project-based thinking and toward product-based thinking. Due to the pandemic outbreak, businesses now have a number of clients involved in aligning, allocating, earmarking, and spending budgets in accordance with product-aligned agile delivery.
Percentage of cloud-based processes
Cloud-native tools and automation can provide the agility that businesses will need in the future. To keep developing, processes should be built end-to-end in the cloud and designed to learn from human interaction. Businesses must get as close to 100 percent as possible to build an organization in which the process can operate end-to-end through the corporate value chain with the fluidity to respond to rapidly changing needs.
Attribution of revenue
It will be crucial, for example, to match revenue to specific marketing activities. This covers the gamut of how digital transformation investments will aid in lowering customer retention, increasing customer acquisition, and improving the brand experience. In the retail industry, for example, having a frictionless direct-to-consumer commerce experience is critical.
Determining how technology innovation affects sales, in general, would be beneficial to certain companies. Revenue from commodity services isn’t as important as revenue from modern, creative, efficient, and differentiating capabilities that are not only difficult to duplicate but also have a lot of room for development.
Conversion of new customers
Buyers are more interested than ever to try new stuff after 2020. Companies should look at how well they convert customers who try a product or service from trial to repeat usage, to see if they are able to leverage this adequately.
The desire to try new brands has never been higher. Businesses have a fantastic opportunity to benefit from customers who are willing to try new brands. Measuring how well they convert is more critical than ever.