How Businesses Can Establish Right KPIs to Measure Digital Success?
As we look forward to a wonderful new year imbibed with new opportunities, it’s time for C-suite executives to rejig digital key performance indicators (KPIs) and metrics. There’s no question that the pandemic has propelled the world to new digital heights in the current year.
Work from home to virtual meetings, the digital transformation has taken businesses by storm. Many organizations dived deeper into the digital transformation for navigating the crisis.
However, many have failed to unearth the full potential of their DX initiatives. The legacy methods of measuring and monitoring digital progress have played the spoilsport here. Many organizations paid no heed to the fact that their digital KPIs and metrics need a revamp.
Also Read: The 6 Cloud Trends Which Shall Dominate 2022
The KPIs should be evolving and dynamic, for the digital ecosystem too evolve perennially. At this juncture, we bring you the five ways your current KPIs may be failing your digital initiatives:
5 Ways Digital KPIs Impede Digital Success
1) Generic KPIs
Don’t rely on digital KPIs that are generic in nature. As each organization has their unique business objectives, the KPIs should emulate the same spirit and be unique. For instance, some companies look for digitizing the existing business models, while others seek to deploy new digital models.
Each of these objectives calls upon its own set of KPIs and metrics. Therefore, organizations ought to define their business objectives before establishing the KPIs. Then, the right set of KPIs can drive the right digital journey.
2) Not Investment, It’s Adoption
Many firms try to gauge their DX progress by the number of investments made to build or buy the technology. That’s undoubtedly not the right metric. It is safe to say that technology alone has no business value. One can unlock the business value only when the technology is successfully adopted across workflows and processes. Hence, organizations must consider the measure of technology adoption as their metric.
3) Fixating on Revenue and Cost
Many enterprises focus on revenue and cost to measure the potential business outcomes. However, the potential benefits of successful digital transformation go beyond revenue and cost. High customer satisfaction, seamless business processes, and reduced risk are some crucial outcomes of DX. Hence, businesses must associate these outcomes with their selected KPIs, instead of fixating on revenue and cost.
4) Exceeding the Optimum Level
Organizations often misinterpret that digital transformation is all about digitalizing every aspect of the business model. One ought to find a balance point in their digital journey. Going beyond the optimal level may negatively impact the overall customer experience.
For instance, over-digitalizing or conducting almost all customer interactions via digital channels can potentially trigger adverse outcomes. Low customer engagement is one among many drawbacks. So, CTOs and CIOs need to determine the optimal level of digitalization, which is ideal for customers and employees.
5) Rigid KPIs
As the digital landscape is constantly evolving, so should the digital KPIs. One ought not to keep their KPIs constant indefinitely. Organizations must revamp their KPI regularly on par with their changing business goals. Regularly review the relevance of the selected KPIs and tune them accordingly.
Hammering out the right KPIs and metrics is crucial for organizations to succeed in their digital business journey. Ensure that the role and structure of KPIs align with the changing business goals and digital trends. More importantly, restrict from blindly following the KPIs defined by other companies or predecessors.
Given that time is of the essence for digital overhaul, one shouldn’t have second thoughts on seeking the services of IT Managed Services Providers like Veritis. Partnering with Veritis helps you overcome the formidable hurdles that come along your digital journey. Fortune 500 companies are already reaping benefits from our partnership. Join forces with us today and pave the way for digital success.
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