Gartner estimates that 50% of companies have not defined KPIs to monitor the progress of their digital transformation. In order to verify whether or not best practices are being adopted and the digital transformation process generates the anticipated value, companies require pre-determined measurements (KPIs).
We’ll go over the top key performance indicators (KPIs) to help you measure the success of your digital transformation.
Digital Adoption Cost-Benefit Analysis
Adopting digitally involves maximizing the potential of digital tools to achieve a specific aim. Let’s say your company is experimenting with the use of chatbots to enhance customer support. What were the results/benefits of this digital technology for you? When it comes to customer compliance, how much of the problem can be remedied by deploying a chatbot? Do you know how this implementation affects customers’ overall satisfaction? How much money is saved by automating customer service? There are several advantages to using chatbots, and you can read about them here.
The cost of digital transformation, such as the cost of developing and deploying chatbots, should also be considered (including data annotation model building, data versioning, testing, training data preparation, and monitoring)
1. Digital transformations’ ROI
You need to assess the impact of new technologies on your overall company strategy before integrating them into your business processes. There may not be a return on every digital transformation effort, and not all positive results have the same impact. To reap the benefits of technology, you must be willing to sacrifice time and money in order to reap the rewards.
The ROI of your digital investment can be measured by observing how the digital tools you integrate into your company processes improve your strategic goals, such as cost reductions or better customer experiences. For example, has the number of customers increased, or has the customer experience improved?
A timetable for accomplishing established objectives, such as determining investment and value measures, is also highly recommended.
2. User Engagement Data
The amount of time your customers spend interacting with your products or services is known as “user engagement.” If your clients are embracing your technology, you’ll know if your efforts are paying off. There are three ways to track how many people are using your service or product and how engaged they are:
- Active users each day: DAU is a tally of how many people use a particular product or app in a single day.
- Active users weekly: How many people use an app or platform in a week is called WAU.
- Monthly active users: Each month, MAU counts how many individuals use a particular product.
- Monthly customer compliance: If your company’s monthly active users aren’t dropping, but compliance is down, it’s a sign that customers are happier.
3. Digital Capabilities
IT infrastructure and human skill levels are critical to the success of digital transformation in organizations. The amount of digital maturity of an organization has a direct bearing on the success of its adoption of new technologies. There are several aspects that contribute to an organization’s level of digital maturity, including the usage of existing technologies and the digital capabilities of its personnel.
4. Analyze The Digital Transformation’s Dependability
Organizations may face security risks if they shift from manual procedures to a digital business strategy. Customer availability, security, and system performance must all be assessed to identify potential dependability issues. The following are some of the most commonly used metrics for assessing performance:
MTTF (Mean Time to Failure):
The average time it takes for the system to go down. In statistics, it is a measure of a system’s dependability. In the event of a system failure that cannot be repaired, a new component of the system must be installed.
MTTR (Mean Time to Resolve):
Metric that evaluates the average time it takes to discover and correct the root cause of the problem after it has occurred.
MTBF (Mean Time Before Failure):
How long does it take for two failures to occur on average? If the component fails, it can be fixed rather than replaced.
5. Workforce Efficiency
The amount of work completed by each employee in a given period of time is referred to as employee productivity. The volume of work performed by employees is likely to rise following a successful digital transformation. Your digital transformation process can be measured by tracking employee productivity (the time it takes a worker to perform his or her assigned tasks) As an example, when simple operations like document capture automation are automated, staff may devote their time to more productive work.
6. Measuring Adoption and Performance
When it comes to digital and business transformation tools, adoption simply refers to how successfully your staff is using them. An important metric in business transformation is adoption. One of the primary signs of a successful digital transformation is a high rate of digital adoption.
Users may be uninterested in the tool’s extensive features, which can lead to low adoption and performance. It is best to use a DAP while dealing with either of these situations. If you have a good DAP in place, you can ensure a seamless implementation and boost employee productivity.
DAP’s interactive software walkthroughs make it easy for staff to accomplish any complex operation by following the on-screen guidance. It gives a clear picture of how people are progressing and aids in the early detection and resolution of bottlenecks.
7. Productivity of the Workforce
When it comes to measuring the success of your Digital Transformation activities, employee productivity is a great KPI. The value or amount of output that a worker can produce in relation to their time is known as their productivity.
To determine where your Digital Transformation efforts should go, figure out how much money each person brings in.
If you want to improve customer service, you should track how many support tickets your IT department has handled since adopting the new digital product. Questions like these must be addressed to determine if new tools help businesses in increasing the productivity of their workforces.
- Can employees manage their time effectively?
- Are they actively participating throughout the entire process?
- Is task automation freeing up time for strategy?
- Can they perform more efficiently on complex tasks?
It is possible to determine if your staff are being productive and making proper use of the tool by answering these questions.