How Can Digital Transformation Boost Your ROI?

The environment today changes quickly. Hardly any company can miss out on a digital transformation initiative. It is a complex but highly effective large-scale method that decides a company’s success. 

Each organization is well ware of it. Global investments by companies in digital transformation is immense. It can reach $2.8 trillion by 2025.

One thing should be noted: there is no successful individual model for it. Context, goals, and team mentality in a company determine how well the process goes. How it impacts employees also depends on how a company does it.

How Beneficial is Digital Transformation?

Digital transformation has proven benefits. At times it is difficult to measure the Return on Investment (ROI). Digital Transformation efforts aren’t easily quantifiable. How can be one sure at each stage? Especially about time and resources spent can generate good returns in the long-term.

This post will briefly describe ten important tactics that can be implemented. They can also help measure the impact of the digital transformation. They can also help identify its ROI. Let us now see why digital transformation is important today.

Why Should Any Organization Overlook Digital Transformation?

Digital Transformation involves the gradual yet large-scale integration of technologies. It also involves improving operational methods. The process is a gradual and stepwise one. It reshapes an organization’s operations. It also improves value delivery to stakeholders.

Digital transformation is not just a tool replacement. It is an in-depth transformative process that helps overhaul a company’s culture and mindset. This stage can take its time. It depends on whether teams are familiar with digital technologies.

Here are some factors to consider:

The goal of digital transformation is to improve efficiency & save resources. Regardless of the case, the process helps each level of the company. It will give them an edge at all times in a competitive market. Let us now have a good look at the benefits of digital transformation for businesses:

Determining the Return on Investment (ROI) of a Digital Transformation Process

The benefits of a successful digital transformation plan are robust. This does not depend on the organization’s vision. Embarking on it is indeed challenging. It does require the ability to prove its effectiveness and measurable indicators. The process can get tricky.

Each department in a company is involved. They should quantify the impact at individual, national, and international levels. Other complications and factors must be considered. Here are some of the main ones:

Key Tactics That Help Determine and Even Raise the Return on Investment (ROI) of Digital Transformation

Calculating the ROI on digital transformation has challenges. They need to be overcome if ROI needs proper calculation. Yet there are some actions that can be applied to help businesses get a much clearer picture of the outcomes digital transformation can bring. 

Aligning the Process with Clear Objectives

The digital transformation strategy should be implemented carefully. This is why each stage of this tactic must have clear objectives. Each goal should be well-defined. They must also reflect the organization’s mission and vision. It should also be aligned with the best digital practices. The value is visible once it contributes towards the objectives.

Identifying the Key Performance Indicators (KPIs)

Having a non-precise vision of indicators makes things difficult. It is wise to have a precise vision of the indicators that can reflect the success of the digital transformation process and strategy. This helps measure its ROI easily. 

This is why properly defining a list of KPIs clearly from the outset works. They are taken into consideration throughout the process. They even ensure that they are monitored for a long time. The SMART framework works quite well in this regard:

These factors help determine the KPIs that hold the most relevance to the process. Lastly, the KPIs determined can encompass various aspects of the organization. Among them are:

Involving All Stakeholders

The following are essential to the digital transformation becoming a success:

It can also provide a complete vision of the results at each level of the company.

The executive management of organizations is important. They are the driving force behind the digital transformation process. They can propose a structure and a follow-up. This helps support the entire digital transformation process.

Other stakeholders can be customers and partners with Branex. They should be involved timely. Their voice should be heard all the time. A virtual exchange space can help collect their feedback in a centralized manner. This helps raise their commitment and encourages them to participate too.

Keeping a Good Focus on Customers

Digital transformation paves the way for improving customer experience. Research reports indicate that 54% of business transformation efforts focused on modernizing customer touchpoints. This happened before 2020.

Organizations eventually implemented this approach. It helped them see a tangible ROI. They gave priority to solutions improving the customer journey. They help improve the following aspects:

The benefits are worth it. It helps create an honest circle of the following:

Training Can Help Speed up Adoption

Digital transformation can work via training sessions. Teams can be involved in learning the following:

Comprehensive training courses can help employees learn about digital tools and tech. Investing in human capital ensures long-term success, and digital transformation service providers can help boost ROI in this aspect, too.

Conclusion

Digital Transformation is important. It is happening and is helping organizations improve their prospects. Many such efforts can now be quantified. Organizations can hence improve ROI why digital transformation easily.