New IDC Digital Native Enterprise Scorecard Outlines Key Performance Indicators to Effectively Measure DX Performance of Organizations

SINGAPORE, January 04^th, 2018 – Digital Transformation (DX) is no longer a theoretical topic but in execution within many organizations in Asia/Pacific. IDC’s 2017 C-Suite Barometer for Asia/Pacific reveals that more than 60% of organizations in the region are stuck in their DX journey. While these organizations are executing digital projects and making progress, they are not digitally transforming adequately to move the DX needle organization-wide. IDC Asia/Pacific’s 2017 DX MaturityScape Benchmark shows that majority organizations are still in the early stages of DX maturity, with 39.9% in stage 2 (or opportunistic) and 24.8% in stage 1 (or ad-hoc), out of 5 stages.

This DX impasse is attributed to 5 digital deadbolts, and the use of ineffective metrics to measure organizations' performance is one of them. In fact, IDC research shows that at least 67% of organizations are using only lagging and/or traditional indicators. Traditional metrics (e.g. revenues, cost efficiencies, and other indicators used that track past performance) are no longer enough to measure success given the agility required to succeed in the digital marketplace. To help business and IT leaders, IDC unveiled the industry's first Digital Native Enterprise (DNE) performance scorecard to provide the dimensions of high performance through a series of success metrics and its key performance indicators (KPIs). The framework tracks DX investment performance in leadership, omni-experience, information, operating models, and worksource/talent.

“Thriving organizations are setting new benchmarks and redefining what success looks like. For DNE organizations, disruptive innovation is business as usual. In fact, a fundamental driver of their success lies in their ability to lead continuous innovation, something that has resulted in the need for new metrics,“ says Daniel Zoe Jimenez, Research Director for Digital Transformation Practice, IDC Asia/Pacific.

The DNE Performance Scorecard presents a taxonomy and a framework of success metrics and key performance indicators for measuring the benefits and outcomes from investments in digital transformation. While the framework and the metrics in this document are relevant to all industries, they can also be applied to specific industries, enterprise functions, or project-level objectives.

This scorecard serves as a guide for:

• Measuremen t: to measure the direct and indirect benefits from DX investments
• Accountability and transparency: to establish accountability and transparency benchmarks for DX partners
• Strategy : to provide a strategic basis for planning business, operational, and technology outcomes from digital initiatives.

The IDC DNE Performance Scorecard is a critical tool to aid in:

• Helping to understand the scope and impact of DX
• Facilitating an in-depth analysis of DX investments relative to strategic enterprise priorities
• Identifying leading indicators to avoid unproductive DX funding, and trailing indicators to improve the transparency of business results
• Visualizing what DX excellence looks like (i.e. the gold standard)
• Placing a company in a definitive position from which to measure progress
• Developing a blueprint for achieving company DX goals and objectives

“The goal of DX is to ensure the long-term competitiveness of the organization by exploiting 3rd Platform technologies and capabilities. To achieve this goal, organizations should benchmark themselves against the standards of a digital native enterprise (DNE), defined by IDC as an entity that is able to scale its operations and innovate at a pace that is an order of magnitude greater than traditional businesses,” adds Jimenez.

IDC’s first DNE performance scorecard is detailed in the report Measuring Digital Transformation Performance: Introducing the IDC Digital Native Enterprise Scorecard (Doc #AP43037517).