Since digital transformation is more a journey than a destination it’s success can be difficult to measure for leaders who are accustomed to evaluating performance metrics. It’s crucial, however, to keep track of how far digital transformation has progressed.
COVID-19 is boosting demand for digital transformation quicker than before as the pandemic exposes vast inefficiencies and disrupts outdated ecosystems and business models. Therefore, companies should ensure that they are on the right track with digital transformation now more than ever to maintain business continuity and remain competitive.
This is true across industries, as well as enterprise sizes and geographic locations. Will every company eventually become a tech firm? Perhaps not, but they will get closer to becoming one.
Technology is transforming activities such as go-to-market strategies, customer engagements, and workforce enablement, to name a few. Furthermore, in order to stay competitive, businesses need to work on a new mind-set about technology adoption and investment.
There are some crucial indicators that can help companies assess if they are on the correct path in terms of transformation. Some will be specific to the organization’s digitization goals, while others are more generic.
4 digital transformation milestones to keep an eye on
CIOs should pay attention to these four indicators that indicate whether their company is progressing along its digital transformation path.
Processes that can be repeated for digital initiatives
Depending on the organization’s baseline maturity level, this will seem different. In general, IT departments that are focused on digital transformation create a long-term strategy for digital projects and programs.
Defining objectives, recognizing gaps between the current state and those objectives, KPIs to measure success, cross-functional pilot teams and processes, agile training, business change management, and scaling of what works are just a few examples at a high level.
Intensification of lean business processes
Assessing the new processes that evolved as a result of digital transformation is an intriguing aspect of gauging success. The process should be lean, efficient, and fulfill its goals with the least amount of resources and time possible. This category of positive indicators also includes better usage of human resources.
Strategy and execution of digital transformation should be shared
It is common knowledge that digital transformation is not and cannot be entirely driven by IT or the business. If IT teams don’t know where the business is heading or aren’t actively involved in business strategy planning, it’s difficult for them to respond swiftly to a company’s needs.
To allow the business and technical teams to collaborate, a significant organizational shift is required. The responsibility for business strategy and technical implementation should be shared.
Reduced time-to-market and increased change frequency
An increase in speed is a good sign, whether the goal is to introduce new items and features to customers or staff. The frequency with which organizations introduce new changes to their business/client/customer/end-user is a phenomenal metric to track while measuring the digital transformation journey.
This may appear simple and apparent, but it is a great sign of business and technology teams working together. This can be accomplished by quickly implementing, validating, and iterating ideas in the field, which is at the heart of effective transformation.