Understanding the Value of Digital Transformation
Laura Meshen


Laura Meshen

, Content Marketing Specialist

Posted in Digital Transformation

April 20, 2021

Understanding the value of digital transformation

Digitization strategies are changing how companies in every industry interact with consumers, develop new markets and operate their businesses. Understanding the value of a digital transformation within an enterprise is essential.

The massive efforts it takes to support digitizing growth strategies and operational improvements are often brought into question by stakeholders. Every aspect of an enterprise is affected by a digital transformation initiative. It is complex, time-consuming and expensive, so it is only natural that the cost and return on investment are brought into question. When your organization is thinking about a digital transformation project, every effort should be made to actively plan, monitor and assess all of the investments it will require.

Assessing the value of a digital transformation

In order to successfully manage the process of digital transformation and ascertain its value, companies need to measure the digital return on investment (ROI) at every step of the way.

“The key to the digital ROI framework lies in balancing and measuring digital investments across strategic focus areas.” — Strategy& PwC

By creating an ROI framework that can be used to benchmark and gauge value in each of the strategic focus areas, the true value of your digital transformation project will come to life in tangible, data-driven results.

Areas that need digital ROI tracking

For the purpose of this article, we have identified five key areas as customers, employees, operations, data & information security and information technology infrastructure. Below, we outline a few criteria you can build on for a digital transformation evaluation.


Focus on: creating compelling experiences (digital and in-person), fine-tuning the user journey online and exceeding or meeting your customer’s expectations.


Report — Eight essential ecommerce trends for retail & B2CFocus on: enabling and engaging employees to be part of the digital transformation. Provide feedback loops, quizzes and opportunities to have a say in how the digitizing project will affect their role.

Focus on: automating business processes and streamlining functions across every department. Almost every single department within an organization has a level of manual work that can be automated. Look at how data flows from one department to another and eliminate manual processes through systems integrations.

Data & information security

Focus on: protecting digital assets and customer data. Implementing proper security protocols is becoming more and more important as businesses capture more and more customer data. Keeping it secure and private is imperative.

Information technology infrastructure

Focus on: implementing and running new systems and tools. Improving technical architecture and using cutting-edge applications to replace outdated and end-of-life systems is vital.

Metrics to track during digital transformation

Each of the strategic focus areas in a digital transformation value assessment has unique metrics and key performance indicators. It is important to choose metrics, both quantitatively and qualitatively, that link clearly to the organization’s overall goals and strategies. Below are examples of metrics and KPIs that an organization could use to measure the value of digital transformation.


Metrics to track: customer reviews & feedback, number of social media mentions, social media sentiment and ultimately sales conversions.


Metrics to track: engagement scores, willingness to collaborate, turnover, digital adoption, willingness to accept training opportunities.


Metrics to track: production and manufacturing time, just-in-time inventory levels, supply chain efficiency, the response time of emails/chat/phone calls, number of interactions resolving an issue on the first contact

Data & information security

Metrics to track: number of threats detected and defended, number of privacy breaches, fraud losses.

Information technology infrastructure

Metrics to track: speed of new technology implementation, uptime, response time to resolve issues/outages.

Going through a digital transformation is a long and complex road to follow. Many companies will need to rethink and change their business operations completely. For others, it may not be so intense. It all depends on the level of the undertaking and the commitment to getting the best value out of it. By tracking the outcomes and the process of a digital transformation, the value starts to become apparent, one way or the other.

If you are looking for other resources for planning and budgeting digital transformation projects, please browse our resources. Or, reach out to one of our consultants and we would be happy to offer any advice that you may need.

Report — Eight essential ecommerce trends for retail & B2C