MEASURING ROI AND GETTING STARTED ON DIGITAL TRANSFORMATION
MEASURING ROI AND GETTING STARTED ON DIGITAL TRANSFORMATION
To prove the success of digital transformation efforts, leaders need to quantify the return on investment. That’s easier said than done with projects that cross functional and business boundaries, change how a company goes to market, and often fundamentally reshape interactions with customers and employees.
A project such as revamping a mobile application may have a short-term payoff but other projects are chasing longer-term business value.
These STEPS will help you create a realistic ROI model:
1.] Understand your digital transformation objectives
To develop a roadmap and define a business case, you need to know what your destination is. Are you looking to digitise data? Integrate touchpoints? Increase operational efficiency? Boost repeat purchases? It’s probably a combination of several such examples. You need to know your objectives in order to understand what financial KPIs should be measured.
2.] Clearly define your cost centres
It is far too easy to assign all the cost of digital transformation to your IT department. After all, you’ll need more tech-savvy staff and additional software and hardware to drive change.
3.] Set realistic timescales and milestones
Over what period are you going to measure the success of each element of your digital transformation? If you’re launching a new app, you’ll see inbound call levels decrease in the first year because customers are better able to self-serve. But with KPIs relating to customer satisfaction, you’ll need to take a longer-term view as people experience the benefits of new digital services and processes.
4.] Don’t stop measuring
Don’t fall into the trap of focusing on a snapshot of the business at a particular point in time. Instead, measure continuously, keeping those milestones you defined in mind. This helps you understand how different factors affect your ROI, so you get a more accurate cause-and-effect analysis. It also makes it easy to identify potential issues and address them before they have a detrimental effect.
TO START A TRUE DIGITAL TRANSFORMATION NOTE THE FOLLOWING:
Create a digital culture
To spark a change in digital culture, you must begin thinking in a boundaryless way across your internal organizations. Your work needs to be measured with real data, and that data needs to be used to equip employees in ways that let them truly understand and serve their customers.
Have a strategy for your data
In a digital world, you have more data being captured from more sources than ever before. The opportunity and challenge is to bring all that data together, analyze it and use it in a way that’s contributing to better decision making and better outcomes.
Embrace micro-revolutions
The reality for business leaders today is that you can’t future-proof your business. The truth is, the pace of technological change is leading us into a period of rapid, continuous evolution.
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