Digital Transformation (DX) is a challenging initiative integral to the organization's success over the past few decades. As new technologies become mainstream for businesses and customers, companies must adjust to stay with the trend. Most organizations are after large-scale change efforts, yet only less than 30% succeed. Traditional sectors such as infrastructure, finance, oil & gas, and healthcare find it even more challenging: only 11% advance with digital transformation, majorly game development companies.
Why we need to track Key Performance Indicators (KPIs)
Digital expectations are ever-changing, and so are the indications that transformation initiatives are working. There are strategic domains crucial to the digital transformation effort. Thus to measure the success of their DX initiatives, companies count on metrics that track financial and operational efficiency. However, these metrics aren’t always as capable of measuring the success of the digital transformation journey. Key performance indicators (KPIs) shift to adapt to market conditions and company requirements. This means that the KPIs your team used to measure success a year ago might not make sense with your current digital transformation state. Less than 15% of organizations using financial Key Performance Indicators (KPIs) can accurately quantify the ROI on digital transformation investments.
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Important KPIs To Help You Track Your Digital Transformation
Being aware and keeping track of the right KPIs and metrics is a vital part of determining if your digital journey is on the right course. So we will look at various metrics and KPIs that are right for you to succeed in digital transformation.
Scope of Transformation
Evaluate the scope of what you want to achieve via digital transformation. Find out if you can reach a wide and global user base. What proportion of your manufacturing assembly line workflow is automated? Some metrics examples include unique visitors, monthly growth in registrations, organic user acquisition, and manual hours invested per manufactured item.
Return on Digital Investments
Return on investment is always the most important KPI for any new industry. When investing in new technology, you want to be sure about getting your investment’s worth. Return on Investments tells you the difference between money used and money taken out concerning your digital transformation. It would track how much you spent on new technology, training, and other related expenses, and the revenue you have brought in since the transition. ROI can seem small at the beginning of the transformation, but measuring long-term can give you a better picture of the transition's success.
Business Agility
Another advantage that digital transformation delivers to various organizations is the ability to become agile and adapt faster to market changes. Business agility should be part of any organization’s digital transformation KPIs to look out for as it gives a better idea about the success of this project. A company’s agility is estimated by time to market, ability to make decisions on time and adapt to changing market needs, resource utilization, and monitoring the success of agile methodologies.
Revenue from the digital solutions
If you are bringing in new technologies, you want to be aware of how much returns those specific components are bringing into your business. The metric seems similar to the return on digital investments, but instead, it focuses explicitly on revenue with newly introduced technologies.
User Engagement
From a user position, the technology should be impactful enough for their task to get regular engagement. If users are not engaging the way you intend, It’s likely because your technology is not beneficial enough for them to switch from their current work pattern. Insights into features of the technology that are favored among the users can help the organization comprehend the usage pattern and conduct suitable improvements in product releases.
Some metrics that describe usage patterns and trends are:
- Traffic sources
- Bounce and exit rate
- Customer satisfaction index
Cost-benefit Analysis
A cost-benefit analysis is usually used before making decisions to decide which ones are worth the investment. With this, you can easily compare the costs and profits of different conditions to find o which is most likely to be beneficial in the long run for your business. Performing a cost-benefit analysis for different elements of your digital transformation can help you settle on what you should focus on.
Customer Experience
A very crucial KPI to track when going through a digital transformation is customer experience. Assess user experience of the technology since end-user satisfaction eventually determines how satisfactorily the technology investments translate into the desired organizational improvements. Following up on user experience closely and frequently will give you an insight into whether your digital transformation is working or not. Some common metrics to evaluate customer experience include:
- Customer Satisfaction (CSAT)
- Customer Loyalty Index (CLI)
- Customer Effort Score (CES)
Employee satisfaction and retention
To measure if your digital transformation efforts are paying off, you should start by measuring the satisfaction level of your employees and their retention period. A Satisfied employee will not leave the company easily, thus they will help you enhance your services and products. You can measure it through various KPIs such as the rate at which employees leave a company, the percentage of employee who sticks with the company over time, and the success of employee recognition programs.
Choosing Digital Transformation Metrics
Once you’ve defined and picked the metrics you’ll use, it’s important to locate the curve of the digital KPI growth trajectory. Follow industry-approved best practices that have helped industry leaders to push the boundaries with their digital transformation process.
Evon Technologies, our software development company in India can make your digital transformation journey easier to implement and track. You can quickly see how your end users are engaging with the platform, so you can make proper improvements to keep your digital transformation journey on track. Be more productive and keep your customers satisfied with the right digital transformation company backing your digital transformation initiatives. Contact us or email us at This email address is being protected from spambots. You need JavaScript enabled to view it. to drive your digital transformation.
