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Measuring goals for a Digital Transformation

Introducing change is hard—especially when it completely transforms the way a company operates. Business owners and employees have to get used to the new protocols and processes. They also need to understand how to correctly use this new technology. Essentially, digital transformation requires a complete cultural shift and the best way to do it is by measuring success on multiple levels.

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Harnessing Technology

An app for Everything Evolving technology has created many opportunities for digitally savvy businesses to gain a competitive edge. Businesses are learning more than ever before about their customers and business processes. The intriguing effect of technology came into effect in the business landscape is inspiring but overwhelming at the same time. Digital technology consists of complicated processes.

This must correctly come into execution with the solid metrics to measure success. It may get easy to lose sight of your goals along the way. A business might use technology to see improvement both internally and externally. However, this only works if you can recognize and measure how well it operates.

Before Switching

Many businesses make the switch because they do not only believe it is the right thing to do but also that it will increase profits. While both of these things are true, the determination of how technology gets implemented will determine success. Many organizations traditionally make top-down changes, with no set standards to measure ROI. This leads to confusion, discrepancies, unhappiness, and even failure. A switch of this magnitude requires a complete corporate cultural shift.

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Employees need to understand company goals and how they will achieve a digital transformation. Before implementing digital technologies, businesses need to create—and share—a complete plan with goals and milestones. The four most common technologies businesses adopt are:

  • Analytical tools for measuring customer behavior and marketing campaigns,
  • Mobile apps that allow companies to reach customers wherever they are,
  • Platforms that bring employees together and allow for remote business operations,
  • Social media for marketing and communication.

Each of these components comes with its own learning curve. Sales and marketing employees must learn how to use analytics to leverage their campaigns; mobile apps must get managed and updated to comply with changing SEO trends, and employees need training in order to effectively use cloud technology and service platforms.

Finally, social media requires ongoing maintenance and the right channels must get selected from the start. As you can see, measuring the success of these technologies is a process with many moving parts.

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Measuring Success

All technology can get divided into two groups: customer experience, and business operations technology. A successful digital transformation will find a happy balance between the two. Ultimately, you want to provide customers with value and excellent service while simultaneously optimizing the operational aspects of your business. Measuring the ROI in each of these areas could be done with the use of individual metrics, such as:

  • Changes in revenue.
  • Improvements to operational efficiency.
  • Changes in customer relationships and engagement.
  • How well the company adapts to change, and how flexible leaders and employees are.
  • How effectively knowledge gets used and shared throughout the organization.

By looking at these metrics separately, you gain an overall picture of how successfully you are implementing digital technologies. For example, increased customer engagement and more positive relationships may indicate that your analytical tools are providing your sales and marketing department with valuable information.

Your employees’ ability to recognize and achieve company goals indicates that knowledge is getting shared effectively, and they understand the technology used in their day to day jobs. An increase in revenue means you’ve minimized operational costs while maximizing sales. Measuring the individual parts of your organizational transformation shows you its success as a whole.

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Determining Your Digital Priorities

Do not spread yourself too thin all at once. Integrate key components one at a time. Do not rush this—give everybody a chance to embrace the learning curve, and measure that success before moving on to the next technology. Determine your business’ priorities and goals by asking the following questions:

  • Do you need to improve how your business operates and identify inefficiencies?
  • Do you want to increase customer retention rates or bring more visitors to your website?
  •  Does your business get optimized for mobile capabilities?
  •  Would you benefit from a larger online presence?

Of course, you probably want to achieve all of these goals. However, outlining your priorities now will tell you which technologies to implement first and how to measure their success as time goes by.

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