KPIs to measure the progress of your Digital Transformation

KPIs to measure the progress of your
Digital Transformation

It’s important to choose the right KPIs to track, as they will vary depending on the specific goals and objectives of the digital transformation initiative. Regularly monitoring and reporting on these KPIs can help organisations track their progress and identify areas for improvement.

Below are some examples of KPIs that should be used in your metrics to measure the progress of digital transformation within your business.

9 important kPIs

to measure our Digital Transformation (DX)

1

Scope of Transformation

Consider the extent of your digital transformation goals and give them a numerical value.

Do you anticipate it having an impact on all departments or just a few particular teams? Will it include the use of just one tech tool, or will it necessitate the coordination of several? Do the process workflows require updating?

2

Return on Digital Investment

Measure the effect on multiple business areas that will be impacted during the digital transformation process.

Digital transformation investments are anticipated to reach £6.39 trillion by 2024. Measuring an initiative’s effect on numerous business areas is essential as it can boost overall business revenues and employee productivity.

Customer lifetime value
Percentage of the investment that directly influences revenue
Customer churn rates before and after the transformation
Employee attrition rates before and after the transformation
Months to recover investment
Changes in monthly recurring revenue (MRR) and annual recurring revenue (ARR) rates

3

Active Usage

Identify active usage among your employees

Scalable technological adoption is required for successful digital transformation. Enough workers must adopt technology into their jobs and replace outdated or time-consuming methods.

4

User Engagement

Track how satisfied your customers and employees are with the new implementations.

For frequent involvement, the new technology should have a significant enough impact on users’ and employees’ daily work lives. If they’re not using it as you expected, it’s generally because they didn’t find the technology valuable enough to change from how they typically work. Additionally, keeping track of information on the technology’s most used features and functionalities will help your business better understand usage trends and make the necessary adjustments.

5

Availability and Reliability

Assess system performance and monitor for any reliability problems both during and just after the transition.

The replacement of outdated technology or manual processes is one of the key drivers of digital transformation. However, there are occasions when you cannot eliminate the legacy technology right away so as a result, you might integrate it with the new technology, which could result in unexpected complications.

6

Risk Factors

Companies must assess the cybersecurity and data privacy concerns of the new technology as more assets and processes become digital.

Your transformation programme must make an investment to lower the risk posed by the technologies and whatever it integrates with if you want it to be sustainable in the long run.

7

Deployment Speed

Measure the speed of the deployment of new projects that have been implemented.

Today, a digital transformation project’s speed is crucial. Any delay, especially in the digital age, means losing ground to rivals or creating tools that are useless before they are even utilised. The speed of deployment reveals the firm going through the transformation, demonstrating how successfully the many stakeholders collaborate and utilise contemporary tools, data, and processes to learn and develop.

8

Employee Churn

Measure the talent levels your organisation has access to for a transformation project.

Tech expertise and staffing is the one metric that is frequently overlooked during digital transformation projects. Tech workers are a crucial component of any transformation project, therefore if you want the project to be successful, your organisation must be able to attract, promote, and retain talent.

9

Customer Experience

Most importantly, track to measure the impact on your customer experience

You must ascertain how well your IT investments convert into the anticipated financial improvements for transformation projects that will directly impact your customers, such as improving customer service or sales. It may not have a direct impact on your key focus, but it can improve areas indirectly.

Let us help you…

If you are looking to start a digital transformation journey our team will create a strategy based on your requirements. We’ll make sure all KPIs are geared toward customer satisfaction and prepare your staff towards digitalisation. Get in touch today.