According to a recent InformationWeek article, companies are accelerating their technology investments while simultaneously struggling to clearly define their digital investment strategy. If this sounds like a familiar challenge, read on for some best practices for effectively measuring digital transformation success.
Centralized Governance Approach
From an analytics perspective, the end-goal of digital transformation is creating a data lake that contains all relevant enterprise data, allows companies to derive intelligence from this information, and finally democratize it throughout the organization. To do this effectively, companies need a centralized governance and oversight approach to benefits and associated costs. It’s also important to create programs to formally identify, measure, and report on the outcomes of digital investments.
Digital Governance Framework
Organizations should institute a governance framework to establish decision making roles, identify who is accountable, and determine ownership in key areas throughout the business. The framework should also ensure ongoing change management for the company’s digital initiatives, and support the competing priorities of increased revenue, decreased costs, addressing regulatory requirements, and continuing to mitigate risk. With this framework, companies can better evaluate digital projects and ensure that those most closely aligned with its mission, strategy, and desired KPIs receive the largest priority and investment.
Include Variety of Stakeholders
Another consideration for effectively measuring digital ROI is ensuring that a variety of stakeholders have a seat at the table. Who these stakeholders are will vary based upon the nature of the project, but typically the group comprises the C-suite, key business units, implementation teams and ongoing support teams. These and other roles need access to the right data in order to evaluate whether or not a project is successful, which once again underscores the need for a centralized governance approach that supports data democratization.
Remember the Basics
In addition to the considerations outlined above, companies also struggle to measure digital ROI due to poor planning or lack of established KPIs. At the outset of any digital transformation project, organizations should first identify the problem they hope to address, the KPIs they will utilize to define success, and how they will measure progress.
You can read more about these and other considerations in this InformationWeek piece.