TechRepublic's Dan Patterson talked with Deloitte Consulting CTO Bill Briggs about how to gauge digital transformation success.
Watch the video, or read the transcript of their conversation below:
Patterson: Because the technology can differ and the application of technology can differ company to company, how do we define a proper KPI or a good ROI for my company's investment in undergoing some sort of transformation?
Briggs: Typically, if you get it to that bounded, actionable initiative, then it's easier to start saying, "What do we expect to be different?" That's the key part. Sometimes we broadly say, "Hey, digital transformation is imagine, deliver, and run the future." The question becomes the fill in the blank of what we're focusing on. The future of supply chains is they've all been supply networks. We're going to measure that in availability, customer-share, and inventory terms, and things that have very measurable outcomes behind them.
To do that, we have to light up the factory floor with IoT. We have to predictive analytics and automation in place. We have to maybe invest industrial robotics. We have to do direct to consumer the way we hadn't before. The metrics are going to vary depending on what the hero of the story, the noun of the action, behind the digital transformation, ends up being. But then, once you get those terms, you can typically have a pretty grounded conversation.
The interesting thing becomes, some of the more pervasive investments have to happen don't lend themselves as cleanly to the business case of investment and outcome. For example a huge piece that many organizations are wrestling with is, how do I modernize my core? I've invested, fill in the blank, probably measured in billions, on my technology stack, infrastructures and applications and data, and my people skills, my relationships with contractors, consultants, all of it.
How do I think about making that a foundation to drive innovation and growth? It could be, I have a self contained, here's what it's going to take to deliver the shinier piece of that digital supply network, or digital finance, or digital HR, whatever it might be. But then, how do I actually justify what largely is going have to be a more enterprised scale investment in this modernization effort? The good news is, you can actually quantify that too."
For the rest of the conversation, check out these articles:
- The most important technologies powering digital transformation
- These are the biggest challenges of digital transformation
- How bake digital transformation into company culture
- Digital transformation: A CXO's guide (ZDNet special report) | Download the report as a PDF (TechRepublic)
- Walmart's automated pickup stations highlight future of digital transformation in retail (TechRepublic)
- Brick and mortar retail digital transformation is powered by mobile device data (TechRepublic)
- Amazon Go launches: The automated retail revolution begins (TechRepublic)
- For retailers in the age of Amazon, user experience is a question of survival (ZDNet)
- Here comes the future of retail (again) brought to you by tech vendors (ZDNet)
Dan Patterson has nothing to disclose. He does not hold investments in the technology companies he covers.
Dan is a Senior Producer for CNET and CBS News.