DIGITAL TRANSFORMATION ROI GUIDE: HOW TO MEASURE AND IMPROVE FOR 2023

Simply having a good digital transformation and execution strategy is not enough to guarantee success. Businesses need to continually measure the return on investment (ROI) from their transformation initiatives to ensure that they are aligning with larger business goals.

Let’s take a look at how to measure digital transformation ROI and how businesses can make more informed decisions about their transformation strategies and ensure that they are getting the most out of their investment.

Metrics & Key Factors to Measure ROI of Digital Transformation

Any business looking to invest in digital transformation needs to be aware of the potential return on their investment. According to Grand View Research, the market size for global digital transformation is expected to grow at a compound annual growth rate (CAGR) of 23% until 2030.

As businesses increasingly move towards digital operations, it’s important to consider the various performance areas that will be impacted. PwC has proposed a digital ROI framework that takes into account employees, customers, infrastructure, innovation, and safety and soundness.

Within each of these areas, there are opportunities for businesses to improve their operations and bottom line. However, it’s important not to try to tackle all of these areas at once. Doing so can overwhelm the workplace and lead to frustration and resistance to change. Instead, it’s best to focus on one area at a time and set a goal for how you want to improve. By taking a phased approach, you can ensure that each area gets the attention it needs and that your employees are able to successfully adapt to the changes.

Metrics to set for measuring ROI include:

• Cost reduction of operations
• Productivity boost
• Business growth
• Data security
• Organizational culture

What steps must we follow to have the most appropriate ROI?

Every organization is different. They have different workplace standards, philosophies, and objectives. However, C-suite executives share similar aspirations for their respective organizations to grow and command the market and augment shareholder value. While every organization is different, there are ways to measure digital transformation ROI that can be applied to any organization. By understanding how digital transformation can help organizations achieve their specific goals, executives can more easily invest in and implement digital initiatives that will have a positive impact on the bottom line.

With this in mind, here are steps on the guide that help you can measure digital transformation ROI.

Read more: https://magenest.com/en/digital-transformation-roi/