Digital KPIs: Your keys to measuring digital transformation success

Digital KPIs enable CIOs to gauge the impact of digital business initiatives — and help them recalibrate and tweak digital models based on measurable value and performance.

Digital KPIs: Your keys to measuring digital transformation success
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Ask a CIO how he or she quantifies the impact of their digital transformations and you may get a funny look, like you told tasteless joke. The reality is that many CIOs don't have metrics for gauging the success of digital projects, such as new ecommerce platforms, mobile apps and chatbots. But CIOs who fail to quantify these initiatives may find themselves outflanked by nimbler rivals, analysts say.

To score the value of their transformation efforts, CIOs must use digital key performance indicators (KPIs) as their "enterprise compass,” Peter Sondergaard, Gartner's global head of research said at the company's Gartner Symposium/ITxpo 2017 this October. But there's a chicken-egg quandary at work: You can't measure what you haven’t defined.

“The biggest limitation [of digital KPIs] is the lack of a clearly defined digital ambition," or strategy, Gartner analyst Paul Proctor told CIO.com recently. "Having a clear idea of your digital ambition will give you some ideas of what you should be measuring to measure your progress. You can't measure something you don’t have a measuring stick for."

What are digital KPIs?

Digital KPIs are measurable values for evaluating the performance of digital business initiatives. Digital KPIs can help an organization ascertain how far it has progressed on its digital strategy and how well it is improving its digital business outcomes.

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