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How to define, implement and measure KPI in a digital transformation project

Mervyn Graham

Digital transformation projects can span across the whole organisation. Digital projects should be considered as a continuous process as technology is constantly evolving. The nature of these projects means it often needs to be divided into sub-projects, based on the area of the business you wish to tackle first. The same process should apply for each project, from thoroughly defining the scope to measuring the success. Here are some of the steps you should follow:-

Have a goal in mind and research

What do you want to achieve from your digital transformation project – is it better processes? Improve customer services? Digital projects can be anything from choosing new software and creating an e-commerce site to better internal reporting.

Digital transformation goals should be related to making a difference in the overall business performance. When prioritising the projects, consider which will provide the most potential benefit.

Decide on the scope by first assessing the current situation and pinpointing the main challenges the company is facing. Whether the challenge is to work on existing processes or introduce something new to meet demands is needed, talk to stakeholders who have first-hand experience in the topic.

Assessment of external and internal factors is required, as researching it helps you refine the scope of the digital project. Then, look at the solutions that are available on the market. When choosing a digital product there will not be one solution that fits all – use the research to decide the must-haves requirements.

Tips on executing your digital transformation plan

The execution will be the most difficult. Many underestimate the amount of time and resources it may take to undergo digital transformation.

A large part is change management and ensuring alignment from staff where there is buy-in to the digital transformation transition. During this process, you need to enable two-way communication so staff members can provide feedback as if the change affects their daily activities, they will know their processes the best.

The project team will need to work closely with the chosen digital partner - although you’ll know the company best, be open-minded and be willing to adapt or change existing processes as they will see things from a different perspective.

Clear communication of the vision and progress throughout the project is integral to its success.

Getting the results

Although your initial digital transformation goals can provide the basis for your KPIs should be refined once the solution is decided - as KPIs can differ depending on the project and the method you choose. The metrics used should be a combination of internal and external measurements, as any improvement should relate to better business performance, such as:

  • Measuring the user utilisation
  • Changes in response rates
  • Monitor the time saved
  • Revenue from new digital services
  • Customer satisfaction and retention rates
  • Amount spent on the project vs the generated revenue 
  • Assess operational improvements and productivity rates
  • Employee morale and feedback
  • Return on investment such as operational savings

What digital transformation KPIs to use will depend on project goals, as it is necessary to monitor the value it generates. Results may not be outstanding at first, as there will be an adjustment period or even an oversight. There will be an element of re-assessing and modifications but, any digitalisation requires regular review as technology is constantly changing.

Contact a member of the Zoosh team today for more information on how to define, implement and measure your digital transformation or on our Product Studio services.