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Digital Transformation: Which KPIs?
The document discusses the challenges and key dimensions of digital transformation, emphasizing the need for companies to adapt to changes in customer experience, operational models, and leadership strategies. It highlights the importance of measuring digital transformation through specific KPIs related to customer and employee satisfaction, as well as the significance of organizational culture and strategy in achieving successful transformation. Overall, it argues that digital transformation is not merely a technological change but a comprehensive shift in how organizations operate and create value.
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Introduction of Patrizia Bertini and the key topic of Digital Transformation.
Describes the current landscape with the need for change, highlighting statistics on company failures and challenges in transforming digitally.
Discusses the rate of technological change and challenges in human capital strategies affecting successful digital transformation.
Identifies key ingredients necessary for successful digital transformation focusing on customer, employee, and business experiences.
Explains the ultimate goals of digital transformation, emphasizing value creation, operational efficiency, and that 'digital' is more than just technology.
Outlines the essential steps for digital transformation and emphasizes the importance of using appropriate KPIs to measure success.
Describes customer-focused metrics such as CSAT, CES, and NPS to assess customer relationships and satisfaction.
Details the changes in customer relations over time and reinforces that customer experience is a central strategy.
Discusses how internal operations of organizations influence results, stressing the need for effective customer issue resolution processes.
Asserts that technology should enhance existing processes, introduces FCR and ROII metrics to evaluate effectiveness and innovation.
Stresses the need for business models to reflect customer-centric approaches and leverage new value creation.
Highlights the significance of human resources, emphasizing ETR and ESI as metrics for organizational performance and employee satisfaction.
Clarifies misconceptions, emphasizing that digital transformation is about value creation, continual change, and culture rather than just a project.
Discusses that digital transformation requires deep cultural changes and managing inefficiencies to drive better ROI.
Final reflections on digital transformation as a strategic change management process focusing on customer experiences.
Invites questions and further engagement, providing contact details for follow-up.
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Digital Transformation: Which KPIs?
- 1. Digital Transformation: Which KPIs? PatriziaBertini pat.bertini@Gmail.com Twitter: @Legoviews Athens 5th December 2017
- 2. The scenario Whatis happening today?
- 3. Lack of change andadaptation leads to self- destruction CapGemini’s reports that since 2000, 52% of companies in the Fortune 500 have either gone bankrupt, been acquired, or ceased to exist
- 4. Spending is raising… notso are the results IDC has predicted digital transformation spending to reach $1.7 trillion worldwide in 2019, a 42% increase from 2017. But 59% of companies remain at a “digital impasse” and are struggling to transition into becoming a digital-native organisation.
- 5. 84% Of organisations failat Digital Transformation Forbes and IBM report that 1 in 8 had Digital Transformation right and more than 50% of companies failed completely
- 6.
- 7. What is reallyhappening Rate of technological change Individuals are quick and adept at adopting new innovations Organisations are not fast enough to adapt and businesses still adopt first industrial structure, processes, and management The gap between public policy and the other domains results in imbalances and challenges for business
- 8. The problem comes downto human capital strategies how businesses organise, manage, develop, and align people at work to deliver successful customer and employee experiences
- 9. What are thekey ingredients? The dimensions of Digital Transformation
- 10. Digital transformation requires afocus on the customers, employees, and business The driver of Digital Transformation is to enhance the experience of customers, improve operational models, and transform business models
- 11. The Ultimate goalof Digital Transformation To create value for the business and for & with the customers through digitally enhanced processes that streamline operations, transform business models, and increase the overall customer and employee satisfaction
- 12. Digital is anadjective telling how to change Digital is not a technology
- 13. The digital transformationkey steps Customer Experience Understand the customer Onmichannel seamless experience design Streamlined customer processes Operational model Digitalise processes Performance management Operational transparency & governance Business model Value configuration Reshape organisation Strategy integration Leadership & capability Define skills and training needs Share strategy, visions, goals Distribute leadership and empower Technology Business and IT integration Unified data and processes Solution delivery
- 14. How can youmeasure Digital Transformation? Use the right KPIs
- 15. Customer experience Digital transformationchanges the relationship with the customers For this reason customer focused metrics are key to prove that brands are shaping new relationships
- 16. Customer Satisfaction Index (CSAT) •It measures how satisfied is a customer • It’s a short term and touch point focused metric
- 17. Customer Effort Score (CES) •CES measures how much effort the customer put into a specific interaction with the brand • The assumption is that low effort interactions drive loyalty • It’s a short term and touchpoint focused metric
- 18. New Promoter Score (NPS) •Measures loyalty and longer term relationships • It focuses on the existing ongoing relationship between the brand and the customer • It’s strongly correlated with measures of company growth
- 19. In 1977, 32%of U.S. shoppers experienced issue in shopping. In 2017, the 2017 Customer Rage Survey says that figure had risen to 56% The relationship between customers and organisations are changing. And are changing fast.
- 20. Customer experience isnot a piece of technology. Its a strategy. Get customer intimate by first focusing on centring the customer within your business. In this sense CX is a cultural condition. Technology is there to enable and scale. Steven Walden, CX expert.
- 21. Operational models How theorganisations operates internally is key to ensure results and value creation for the organisation, its employees, and the customers.
- 22. The operational model affectsthe CX How an organisation deals with the customer defines the relationship the brand creates and it reflects the organisation’s ability to adapt to the changing environment
- 23. The Customer issue resolutioncapability • Customer issue resolution capability is the percent YoY change in the speed in resolving customer issues • It measures all touchpoint and all channels • It assess how new operational models are impacting the customer experience
- 24. You cannot transform justby adding the latest technology on the top of obsolete processes Digital transformation is about processes and people before technology
- 25. First Contact Resolution Rate(FCR) • FCR is the rate of customer’s issues solved in a single interaction, with no need for costumers to follow up • It is not about the resolution time (quantity of time) but it is focused on the quality of the interaction • It reduces efforts and affects both CES, CSAT, and NPS • It should be measured on all channels
- 26. Return On Innovation Investment(ROII) • A measure used to evaluate the effectiveness of a company's investment in new products or services • It includes all the costs that have been sustained to deliver innovation • To calculate ROII: profits produced by innovation ____________________________ cumulative investment required to create return
- 27. Business models Business modelsneed to be transformed by putting the customer at the heart and reviewing the overall operational models. Digital transformation leads to new value creation models that cannot be overlooked.
- 28. Leadership & capability People withinthe organisation are the key asset that drive digital transformation Measuring the employee experience is essential to ensure a successful Digital Transformation
- 29. Employee turnover rate (ETR) •ETR is the percentage of employees in an organisation that leave during a given period of time • If the trend is of a growing turnover rate, chances are there are some aspects that needs to be reviewed within the company operational model or culture
- 30. Employee Satisfaction Index (ESI) •ESI assesses the level of employees satisfaction • This index is key as there is a causal link between motivated employees and business performances: • Motivated employees who are more likely to deliver satisfaction to customers • They are more likely to drive successful business performance
- 31. Technology What KPIs wouldyou use?
- 32. Technology is simplya mean to an end, it’s an enabler We can measure tools’ efficiency, but their efficacy is always determined by processes, culture, and employees
- 33. The truth aboutdigital Transformation 5 things to remember
- 34. Digital Transformation is nota cost centre It’s not about how much you spend It’s about how much value you create through change and people
- 35. Digital Transformation is nota project Digital transformation is a permanent change in the organisation’s cultural and operational DNA
- 36. Digital Transformation is nota crush-diet Diets only work if they become part of your life-style The moment you stop your diet, you go back to square one. The same with Digital Transformation
- 37. Technology alone is justlipstick on pigs Digital transformation is not about technology, it’s a vision, a culture, a new way to achieve new goals and create value No technology alone, without the right integration, strategy, implementation, or process will deliver value by itself
- 38. You Cannot buyDigital Transformation There is no OOTB Digital Transformation. You can buy • skills • vision • strategy • tools
- 39. Few more takeaways To make Digital Transformation happen
- 40. Digital transformation is away of being and doing Because digital transformation is all about change and people It’s a strategy and a vision
- 41. It’s not aboutmoney It’s about culture It’s about changing and leaving the industrial operational model behind and embrace a systems thinking based approach
- 42. The ROI ofDigital Transformation • To digitize legacy systems may have a significantly lower ROI than investing in R&D or marketing on the short term • But removing inefficiencies of legacy systems and focusing on the customers increases potential for innovation by enabling new feedback loops and new data that provide insights to improve products and processes
- 43. Ultimately Digital Transformation is aboutmanaging change Defining the strategy and the vision to lead organisations in the present focusing on experiences and values and putting the customer at the centre
- 44.