Like every other initiative, digital transformation also impacts the bottom line of the business. But using traditional ROI measures does not work here. Similarly, you cannot use profit numbers as a measure of DX success.
Instead what we advise business leaders is to use tailor-made metrics that track the financial implications on an incremental basis. These metrics will also consider the change in business model if any, the change in infrastructure, etc.
Sometimes, it is better to calculate the value and not just ROI from DX investments. Then there are times when popular metrics of recurring revenues, profit margin, cost of customer acquisition and retention, etc. can be used.
Financial metrics will change based on your strategy and approach of digital transformation.
To know what type of KPIs and custom metrics you should use to measure your DX success, you can talk to our digital transformation consultants. We will analyze your strategy, objective, approach, efforts, and then recommend what metrics will give you a realistic view of your DX success.