Measuring Digital Transformation Success Using Business Operating System | QPR

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3 April 2018

Measuring Digital Transformation Success Using Business Operating System

 

Why Measure Digital Transformation Success

Are you working in an organization that is undergoing digital transformation? How do you ensure the success of this digitalization leap?

According to many CIOs, the measurement of success in digital initiatives remains to be the biggest challenge among organizations. Without standard measurement and visibility, organizations have no way of knowing if they are succeeding in digital transformation.

 

The Growing Need to Connect Business Design and Current Operations

With organizations driving digital business transformation, there is an increased need for the redesign of processes, implementation of changes, and coordination of multiple interdependencies.

To track the change implementation and customer experience, the practice of operative indicators is necessary. Operative indicators are data-driven, deriving from the event data of information systems.

The alignment between business design and current operations is required to gain visibility and avoid the risk of failure growing in rapidly changing digital business.

 

Issues Hindering Your Digital Transformation Success

The lack of alignment is one among many reasons why digital transformation fails. The common issues faced by professionals when driving digital changes to transform an enterprise fall into four main categories.

 

Leadership

Lack of consensus on what digital transformation means among departments of various functions.

- Lack of CEO's support in uniting IT and business.

- Lack of digital talent and continuity of leadership in digital transformation due to frequent turnover.

 

Strategy

Lack of focus due to premature scaling.

- Lack of alignment between digital transformation strategy and financial goals.

- Difficulty in balancing between back-end infrastructure and customer innovation.

 

Operations

Lack of acceleration in realizing the return on investment of digital initiatives, thus resulting in a lack of budget or over budget.

- Overlooking the importance of integrating technologies and reinventing the customer value proposition.

 

Culture

Resistance to change among employees.

 

Taking these issues as a basis for improvement, you can rethink your digital transformation approach with the following digital KPI and metrics best practices.

 

How to Measure Digital Transformation Success

Even though there are no silver bullets for digital business transformation success, KPIs, and metrics can help gain visibility, track performance, and align goals among ICT and non-ICT executives. Not only do you get to understand what the business focus is and where your business revenue comes from, but you can also measure improvement and business outcomes of existing business models, as well as working with your non-ICT executives to support digitalization.

 

A best practice you can consider is collaborating with senior executives to align digital transformation goals with current operations and expected business outcomes. Mapping out the digital journey and setting KPIs is an excellent start to achieving alignment. It is equally important to follow up on the planning and execution by measuring the performance of the digital journey and the created business value. You should also pay attention to the extent of digitalization by determining the ideal digitalization balance point for customers and employees.

 

Using Business Operating System as Your GPS Navigation

Among Gartner's top 10 strategic technology trends for 2018, the concept of digital twins is especially useful to leaders in getting more guidance on achieving digital transformation success. The digital twins refer to the digital representation of a real-world entity or system. Within the digital twin organization, the business operating system consisting of technology components serves as the GPS navigation to help organizations arrive at their desired destination.

 

Deriving from Gartner’s business operating system theory, there are five steps to success in digital transformation:

  1. Enter your destination
  2. Map your transformation journey
  3. Measure your performance
  4. Create situational awareness
  5. Make informed decisions

Business Operating System

Are you interested in learning the details of how to measure your digital transformation success using the business operating system? Check out our webinar below where you will learn how to build your business operating system step-by-step to navigate your organization to digital transformation success.

Watch on-demand

 

Miika Nurminen's picture
Miika Nurminen
Senior Vice President, Operational Development Business