Monday, April 2, 2018

The “Digital Maturity” BookIntroduction Chapter VI: Take a Holistic Approach to Measure Digital Transformation

It is not the measurement that is important; it is what you do with the data obtained from the measurement. 

Digitalization is a continuous journey to adapt to the digital new normal of the business world. Metrics are part of transparent visual management allowing pulling. It’s important to define clearly how you will measure success in meeting the business purpose and vision. It’s also important to take a holistic approach to well align the strategic level of measurement with operational level metrics. Businesses need to avoid vanity metrics and really focus on key metrics that correlate to better business outcomes.

Performance Management at a strategic level: The purpose of managing performance is about setting performance metrics to evaluate the status of strategy management, making objective assessments, and understanding performance measurement results. At the strategic level, the performance measurement setting should focus on achieving the ultimate goals of the organization as a whole for the long term, nut just individual, one team or one department performance only. Performance management should connect multidisciplinary management dots to tell the full story with the business context, and ensure that the business as a whole is superior to the sum of pieces.

Setting performance indicators to measure Return on Digital Transformation: Digital transformation is now affecting all aspects of business operations from innovation within and around business ecosystem, to business models and processes. Hence, the ROI performance management should take into account both financial and nonfinancial measures, assessing internal improvement, past outcomes and ongoing requirements as indications of future performance. A well-defined set of measurement for digitalization should contain a good mix of outcome measures or the long-term strategic value along with performance drivers to track the progress in the short term.



Innovation management assessment and measurement: Innovation is how to transform novel ideas and achieve its business value. Normally organizations look for KPIs measuring business results generated by innovation efforts. You choose KPIs by deciding which are seen as critical to making the progress in order to deliver more innovations. The innovation metrics in the context of business impact include such as % of revenue from new products/services introduced. You could also change the variables and create something like % of the profit from new ideas implemented. Innovation is a process. One of the measurement solutions is to define process KPIs, which demonstrate the growing capability of the organization to deliver more innovation with business impact in the future. The goal of innovation management assessment and measurement is to build innovation capacity, not about adding the new layer of complicated processes and causing more confusions or problems as the side effect.

It is not the measurement that is important; it is what you do with the data obtained from the measurement. Always keep in mind, people matter, achieve progress by measuring the key objectives and highlight examples of progress and performance you want to encourage.



The New Book Introduction: "Digital Maturity: Take a Journey of a Thousand Miles from Functioning to Delight"?

The New Book “Digital Maturity” Introduction Chapter 1 The Characteristics of Digital Organizations

The New Book Introduction Chapter 2 The Interdisciplinary Aspects of Orchestrating a Digital Business Ecosystem

The New Book "Digital Maturity" Introduction Chapter 3 Fine-Tune Organization Structures to Get Digital Ready

The New Book “Digital Maturity” Introduction Chapter 4: The Next Practices to Orchestrate Digital Paradigm Shift Seamlessly

The New Book “Digital Maturity” Chapter 5 Introduction: IT Maturity is Proportional to the Overall Business Maturity

The “Digital Maturity” BookIntroduction Chapter 6: Take a Holistic Approach to Measure Digital Transformation

The New Book “Digital Maturity” Introduction Chapter 7 The Pitfalls in Digital Managment

The New Book “Digital Maturity” Introduction Chapter 8 From “Doing Digital” to “Being Digital”

The New Book “Digital Maturity” Book Conclusion: Develop the strong Pillars to Build High-Mature Digital Organization

1 comments:

great post, especially this " not about adding the new layer of complicated processes and causing more confusions or problems as the side effect."

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