How is your digital transformation going? “Good, I hope,” might be the sincere yet vacant answer. CIOs need to take more conscious steps to establish metrics to gauge transformation progress. In an article for CIO magazine, Clint Boulton explains how “digital KPIs” are fit for this job and shares some advice on how to use them well.
Key to Knowing
Digital KPIs are “measurable values for evaluating the performance of digital business initiatives.” Depending on context, a digital KPI might be percentage of revenue generated through web and mobile, for instance. These KPIs examine one of two general categories. The first is how well the business is digitizing its current operations across departments. The second is how well the new digital business model is enabling new revenue. KPIs in this second set reflect growth and revenue shifts “that are differentiated from physical assets.”
Boulton provides these tips for best using digital KPIs:
- Work with senior executives to determine the degree of digitalization that will be useful for their departments.
- Set KPIs and goals that provide a straightforward business narrative and get clear on expected outcomes.
- Measure the progress on that narrative.
- Use KPIs to support specific outcome expectations.
- Don’t go overboard by digitizing things that won’t benefit from it, such as removing human interaction from customer support.
About measuring progress on the narrative, Boulton elaborates with this:
Here, some KPIs will be “transitional,” while others will become permanent metrics for business performance as transformation is achieved and digital business becomes standard operating procedure. For example, an enterprise that builds a digital ecosystem may permanently add ecosystem metrics to its ongoing business performance KPIs. Good metrics should influence C-suite decisions such as budget allocations, business process improvements and culture changes.
Digital KPIs let you know if the business is becoming more effective as a result of digital processes. That makes them too important not to have.
For additional elaboration, you can view the original article here: https://www.cio.com/article/3236446/digital-transformation/digital-kpis-your-keys-to-measuring-digital-transformation-success.html