Digital-Transformation-KPIs-Marcolivio-DA-Webinar-2024-09-26.pdf

Are you struggling with digital transformation and wondering why so many initiatives fail? You're not alone. In this post, I’ll share key insights from my conversation with Massimo Marco Livio, a strong advocate for effective measurement in digital projects. We’ll uncover why a staggering 80% of digital transformations fail and explore strategies that can turn your efforts into success stories.

The Reality Check: Why Do Digital Transformations Fail?
Digital transformation often evokes excitement and promise, but the statistics paint a harsh reality: 80% of these projects fail. Why? The root causes often include:

Lack of Clear Objectives: Companies jump into transformation without a clear plan or desired outcomes, leading to confusion and misalignment.
Poor Measurement: Without strong metrics, it's impossible to gauge progress. As Massimo says, “You cannot manage what you don’t measure.”
Resistance to Change: Transformations require cultural shifts, and resistance from employees can derail even the most well-intentioned projects.
The Hidden Costs of Failure
Failed digital projects don’t just waste money on unused technology; they also result in lost opportunities and reduced employee morale. Misaligned projects can drain resources without adding value, making it crucial to set clear objectives and KPIs from the start.

The Challenge for Chief Digital Officers (CDOs)
CDOs often face short tenures, averaging less than three years, due to the high pressure to deliver quick results. Misalignment of goals and lack of resources are common hurdles, making this a high-stakes role that requires robust planning and support.

Learning from Success and Failure
There are cautionary tales, like Blockbuster and BlackBerry, which failed to adapt to changing markets, and success stories like The New York Times, which thrived by embracing a digital-first strategy. Their clear objectives and effective measurement strategies led to significant growth in digital subscriptions, generating over $1.1 billion in 2023.

The Path to Success: Setting Clear Objectives and KPIs
To succeed, start with clear objectives such as:

Value Creation: Use technology to open new revenue streams or reduce costs.
Customer Engagement: Improve customer experience with tailored solutions.
Operational Efficiency: Streamline processes to save time and resources.
Workforce Engagement: Use digital tools to enhance employee involvement.
Measure these objectives with well-defined KPIs to track your progress and adapt as needed.

Conclusion: Turning Failures into Success
Digital transformation isn’t just about adopting new technology; it’s about aligning your objectives, measuring progress, and fostering a culture that embraces change. By focusing on clear goals and effective metrics, you can steer your organization toward digital success, avoiding the pitfalls that cause so many projects to fail. Ready to transform your digital journey? Let’s get started!

1. 1Massimo Marcolivio with Data & Analytics - Webinar “Digital Transformation KPIs” – 26 September 2024 – Images from ChatGPT
The KPIs of
Digital Transformation
Webinar, 26 September 2024
Massimo Marcolivio with Data & Analytics

2. Reality Check
Short CDO tenure
What? Why? When? How?
Good projects stopped, bad projects extended?
“Hype cycle”?
2Massimo Marcolivio with Data & Analytics - Webinar “Digital Transformation KPIs” – 26 September 2024 – Images from ChatGPT
> 80%

3. Business Objectives
3
•New Sources of Value Creation
•Customer Engagement
•Operational Efficiency
•Workforce Engagement
Massimo Marcolivio with Data & Analytics - Webinar “Digital Transformation KPIs” – 26 September 2024 – Images from ChatGPT

4. Measurement
4
•Quantitative (absolute or percentage gains)
•Defined in advance (no “after the fact”)
•Monitored and fine-tuned continuously
•Across the categories of business objectives
•More than one indicator per category
•Both industry-specific and across sectors
Massimo Marcolivio with Data & Analytics - Webinar “Digital Transformation KPIs” – 26 September 2024 – Images from ChatGPT

5. New Sources of Value
5Massimo Marcolivio with Data & Analytics - Webinar “Digital Transformation KPIs” – 26 September 2024 – Images from ChatGPT
•Active usage: puzzles played 8B+ times
•Digital subscriptions: 66% ($1.1 B)
•Digital advertising: 63% of ad revenues
•Other possible KPIs:
digital ecosystem partners &
revenues
orders & revenues from digital
channels
combined digital- physical revenues
customer meetings via AI
…
Traditional
Business
New
Content
Digital
Subscriptions
> >

6. Customer Engagement
6Massimo Marcolivio with Data & Analytics - Webinar “Digital Transformation KPIs” – 26 September 2024 – Images from ChatGPT
•Usage: 105,000+ shopkeepers
•Sales: +29%
•PR value: $1.5 M
•Other possible KPIs:
AI-handled enquiries
app transaction volume & value
customer hours saved
reactivated customers (shopping cart)
…
Small
Retailers
Low
Budget
AI
Personalization
> >

7. Operational Efficiency
7Massimo Marcolivio with Data & Analytics - Webinar “Digital Transformation KPIs” – 26 September 2024 – Images from ChatGPT
•Launch time: from 9 months to 5
•Capital expenditures: -70%
•Other possible KPIs:
sustainability & consumption
reduction
reduction of defects & errors
reduction of maintenance and
repair costs
output increase
…
Frequent
Updates
Time To
Market
Digital
Twins
> >

8. Workforce Engagement
8Massimo Marcolivio with Data & Analytics - Webinar “Digital Transformation KPIs” – 26 September 2024 – Images from ChatGPT
•Time saving: 35 hours per writer per month
•2,900 product descriptions in minutes
•Product description CTR: +23% in 6+ months
•Other possible KPIs:
incident reduction
digitally-solved enquiries
workforce usage of VR-AR, wearable (for
training, remote work etc.)
gamification participants & accuracy
…
Massive
Catalog
Product
Description
AI
Content
> >

9. www.imd.org/centers/dbt/digital-business-transformation/key-performance-indicators/
9Massimo Marcolivio with Data & Analytics - Webinar “Digital Transformation KPIs” – 26 September 2024 – Images from ChatGPT
•80+ real-world cases
•30+ areas of
measurement
•80+ KPIs
•Constantly updated
•Multiple filters
•Downloadable
•Free of charge

10. Thank you!
10Massimo Marcolivio with Data & Analytics - Webinar “Digital Transformation KPIs” – 26 September 2024 – Images from ChatGPT
Massimo Marcolivio
[email protected]
www.linkedin.com/in/marcolivio
Articles
•IMD launches Digital Transformation KPI project
•The measurement of digital transformation performance
•A taxonomy of 24 digital transformation KPIs
•Der Faktor Mensch wird unterschätzt (in German)
•Wie sich die digitale Transformation messen lässt (in German)
•Measuring digital transformation
Online tool •The Digital Transformation KPI project