The KPIs of digital business transformation

Digital transformation can go beyond technology and involve the entire business. In this case, can we measure progress and results? Identifying “digimetrics” is objectively difficult. Here is a proposal of KPIs.

Many organizations invest in digital business transformation but are not able to determine if the investment has generated value and if they are going in the right direction. The reason is that they lack a method of tracking progress, typically a set of key performance indicators (KPIs) that inform on the results of their efforts. Here, I would like to propose a dashboard leveraging the “digital orchestra” concept by IMD Professor Michael Wade.

The “digital orchestra” highlights that transformation efforts must holistically take into account go-to-market, engagement and organization, and their respective components (“instruments” like for instance channels and offerings). Once execution starts, management needs to understand if investments are paying off, hence measuring becomes key. Companies relentlessly measure revenues, costs, customer calls and other well-known KPIs: why behave differently, when the organization is digitally transforming?

The table below proposes some “digimetrics”, i.e. KPIs that help management track progress on digital business transformation.

Measuring digital business transformation: KPIs

The KPIs are mapped to the “digital orchestra” – some cover the actions taken, while others focus on the results obtained. Prior to introducing the KPIs, it would make sense to set the scene by answering preliminary questions on topics like the length of the transformation project or the budget. More details can be found here and I am fully available for further discussions.

Digimetrics can support organizations in the correct execution of their digital transformation strategy. Thanks to a KPI dashboard, management would be able to track and measure the results: everyone needs guidance in times of disruption.

Massimo Marcolivio

About the Author: Massimo Marcolivio

Massimo is B2B Marketing Manager at Dell Technologies in Switzerland. After over 10 years in the company, he has developed expertise in the business aspect of digital transformation. Digital Business Transformation (DBT) refers to the utilization of digital technologies for the design, production, distribution, usage of a good or service, with the objective of improving business results.