It is indisputable that digitization is altering the business landscape in ways in which organizations go to market, interact with customers, thereby impacting a whole gamut of enterprise operations. However, the nature of this transformation is complex and investment heavy, affecting every aspect of the enterprise. As there is a distinct increase in quantum of investment involved, it is essential for companies to closely monitor the relevance and productivity of digital investments in order to maximize RoI.
Given that digital upheaval holds the potential to transform organizations, it is essential that companies develop metrics that measure digital ROI, even while it is being integrated with its overall strategy and goals. It is only then that a true picture of the ground reality will be reflected in these metrics. However, this is easier said than done. Given rapid advances in technology that we have been witness to, the traditional silos and legacy power structures tend to hamstring efforts to measure digital ROI.
Thus, companies don’t just need to reimagine how they measure progress but re-engineer processes with a clear view to resource optimization. While many metrics will inevitably be quantitative in nature, they need to be balanced with a more qualitative measure of progress to give the true picture. At all times, these measures must be aligned to the company’s immediate business needs and overall market strategy. Concomitantly, it should also be ingrained in every employee’s individual performance objectives, for only then can organization-wide digital change be driven.
While a digital transformation can be richly rewarding, it can be a lengthy and expensive process. Only stringent and ceaseless measuring and monitoring can truly verify if digitization is boosting revenues and paring costs. While not a silver bullet, the right analytics framework not only measures ROI and costs, but helps enable change that is meaningful and impactful.