The digital transformation came as a deluge and changed everything. How come that you use the same old IT metrics to measure its results? In this article at the Enterprisers Project, Mike Macrie explains how to drive digital transformation unhindered by old IT metrics.
Un-Measuring Digital Transformation
IT is successful when it decreases operating and innovation costs and adopts new technologies for the benefit of the company. The department also improves customer experience and creates proofs of concept for digital initiatives. Following are the ways you can drive digital transformation efficiently without the old IT metrics restricting your progress:
Looking at the Cost Factor:
Ironically, IT would never have evolved if the metrics to measure its success was cost efficiency. You cannot measure innovation from a cost parlance. The department can deliver efficiency by providing what was expected but no creative ideas would have improved the product.
When Innovation Is Not Measured:
When you let the innovation lab invent without thinking about costs or efficiency, it might attract businesses someday. Macrie narrates how an innovation unit became the center of all the digital transformation activities when it got the support. Inspired, the company started using agile practices across the organization. Members from various departments collaborated constantly to come up with something new. As such, this effort allowed everyone to be a part of the digital transformation.
Creating Strategic Business Units:
The author narrates that the company has seven business units. Each of them is targeting to fulfill one business goal. One of the teams has just 5 members to look after the operations. These business units have such unique goals that they would not have fit into the traditional setup.
The Victory Leap:
As CIOs, you must check if the IT metrics are hampering your digital transformation efforts. If focused on cost efficiency and ROI generation, you will not be able to devote resources to ideate. Though you may succeed in meeting the demands now, you will risk being run down by the digital natives later. CEOs must support you by investing in new technologies, research and development, and innovation efforts. Calculate risks but be brave enough to take the leap of faith. It takes time for the customers to respond, so you must not think of immediate gains. This will hurt your digital transformation initiatives with increased operating costs, bad strategies, and unwanted complications.
To view the original article, visit the following link: https://enterprisersproject.com/article/2018/8/land-olakes-cio-old-it-metrics-hamper-new-transformation-goals