New framework outlines key performance indicators to effectively measure digital transformation performance
FRAMINGHAM, Mass., October 10, 2017 – While many organizations have started on their digital transformation (DX) journey, many are now stuck and failing to realize the value from their investments. Traditional metrics are not enough to measure success in digital marketplace. To help business and IT leaders, International Data Corporation (IDC) unveiled the industry's first DX performance scorecard to provide the dimensions of high performance through a series of success metrics and its key performance indicators (KPIs). Unlike anything else in the industry, the new scorecard is a necessary tool to understand the scope and impact of DX, facilitate an in-depth analysis of DX investments relative to strategic enterprise priorities, and identify both leading and trailing indicators.
"In their current state, established enterprises are making uneven progress in digital transformation. Many find themselves challenged by the new set of competitive market forces and digital innovations that are disrupting and digitalizing the same marketplaces where they have so successfully competed in the past," said Michael Versace, research director, Worldwide Digital Strategy and Agency Services. "This requires an even higher degree of management oversight and measurement to ensure that successful DX outcomes are achieved on time and on budget."
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. The new IDC report, Measuring Digital Transformation Performance: Introducing the IDC Digital Native Enterprise Scorecard (Doc #AP43037517), helps organizations effectively benchmark themselves against the standards of a DNE.
The IDC DX Performance Scorecard is a critical tool to aid in:
- Helping to scope impact of DX
- Facilitating investments relative to strategic 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
"Organizations need a blend of traditional and new metrics applied to digital investments to track their progress and performance on their DX journeys. Our new DNE performance scorecard is uniquely designed to do achieve this objective and support forward-thinking organizations in their DX efforts," says Daniel-Zoe Jimenez, research director, Digital Transformation Practice Lead at IDC Asia/Pacific.