Athens 5th December 2017
Digital Transformation:
Patrizia Bertini
Which KPIs? pat.bertini@Gmail.com
Twitter: @Legoviews
The scenario What is happening today?
Lack of change
and adaptation
leads to self-
destruction
CapGemini’s reports that
since 2000, 52% of
companies in the Fortune
500 have either gone
bankrupt, been acquired, or
ceased to exist
Spending is raising…
not so are the results
IDC has predicted digital
transformation spending to
reach $1.7 trillion worldwide
in 2019, a 42% increase from
2017.
But 59% of companies
remain at a “digital impasse”
and are struggling to
transition into becoming a
digital-native organisation.
84% Of organisations
fail at Digital
Transformation
Forbes and IBM report that
1 in 8 had Digital
Transformation right and
more than 50% of
companies failed completely
What is happening…
What is really happening
Rate of technological change
Individuals are quick and adept at adopting new innovations
Organisations are not fast enough to adapt and businesses still adopt
first industrial structure, processes, and management
The gap between public policy and the other domains results in
imbalances and challenges for business
The problem comes
down to human
capital strategies
how businesses organise,
manage, develop, and align
people at work to deliver
successful customer and
employee experiences
What are the key The dimensions of Digital Transformation
ingredients?
Digital transformation
requires a focus on the
customers, employees,
and business
The driver of Digital
Transformation is to
enhance the experience of
customers, improve
operational models, and
transform business models
The Ultimate goal of
Digital Transformation
To create value for the business
and for & with the customers
through digitally enhanced
processes that streamline
operations, transform business
models, and increase the overall
customer and employee
satisfaction
Digital is an adjective
telling how to change
Digital is not a
technology
The digital transformation key steps
Onmichannel
Customer Understand seamless
Streamlined
customer
Experience the customer experience
design
processes
Operational Digitalise Performance
Operational
transparency
model processes management
& governance
Business Value Reshape Strategy
model configuration organisation integration
Leadership Define skills
and training
Share
strategy,
Distribute
leadership
& capability needs visions, goals and empower
Unified data
Business and Solution
Technology IT integration
and
delivery
processes
How can you measure
Use the right KPIs
Digital Transformation?
Customer experience
Digital transformation changes the
relationship with the customers
For this reason customer focused
metrics are key to prove that
brands are shaping new
relationships
Customer Satisfaction
Index (CSAT)
• It measures how
satisfied is a customer
• It’s a short term and
touch point focused
metric
Customer Effort
Score (CES)
• CES measures how
much effort the customer
put into a specific
interaction with the brand
• The assumption is that
low effort interactions
drive loyalty
• It’s a short term and
touchpoint focused
metric
New Promoter Score
(NPS)
• Measures loyalty and
longer term relationships
• It focuses on the
existing ongoing
relationship between the
brand and the customer
• It’s strongly correlated
with measures of
company growth
In 1977, 32% of U.S.
shoppers experienced issue
in shopping.
In 2017, the 2017 Customer
Rage Survey says that figure
had risen to 56%
The relationship between
customers and
organisations are changing.
And are changing fast.
Get customer intimate by first focusing on
Customer experience is not a centring the customer within your business.
piece of technology. In this sense CX is a cultural condition.
Technology is there to enable and scale.
Its a strategy. Steven Walden, CX expert.
Operational models
How the organisations operates
internally is key to ensure results
and value creation for the
organisation, its employees, and
the customers.
The operational model
affects the CX
How an organisation deals with the
customer defines the relationship
the brand creates and it reflects
the organisation’s ability to adapt
to the changing environment
The Customer issue
resolution capability
• Customer issue
resolution capability is the
percent YoY change in
the speed in resolving
customer issues
• It measures all touchpoint
and all channels
• It assess how new
operational models are
impacting the customer
experience
You cannot transform
just by adding the latest
technology on the top
of obsolete processes
Digital transformation is
about processes and
people before technology
First Contact
Resolution Rate (FCR)
• FCR is the rate of customer’s
issues solved in a single
interaction, with no need for
costumers to follow up
• It is not about the resolution
time (quantity of time) but it is
focused on the quality of the
interaction
• It reduces efforts and affects
both CES, CSAT, and NPS
• It should be measured on all
channels
Return On Innovation
Investment (ROII)
• A measure used to evaluate
the effectiveness of a
company's investment in new
products or services
• It includes all the costs that
have been sustained to deliver
innovation
• To calculate ROII:
profits produced by innovation
____________________________
cumulative investment required
to create return
Business models
Business models need to be
transformed by putting the
customer at the heart and reviewing
the overall operational models.
Digital transformation leads to new
value creation models that cannot
be overlooked.
Leadership &
capability
People within the organisation are
the key asset that drive digital
transformation
Measuring the employee
experience is essential to ensure a
successful Digital Transformation
Employee turnover
rate (ETR)
• ETR is the percentage
of employees in an
organisation that leave
during a given period of
time
• If the trend is of a growing
turnover rate, chances are
there are some aspects
that needs to be reviewed
within the company
operational model or
culture
Employee Satisfaction
Index (ESI)
• ESI assesses the level of
employees satisfaction
• This index is key as there is a
causal link between motivated
employees and business
performances:
• Motivated employees who
are more likely to deliver
satisfaction to customers
• They are more likely to
drive successful business
performance
Technology
What KPIs would you use?
Technology is simply a
mean to an end,
it’s an enabler
We can measure tools’ efficiency,
but their efficacy is always
determined by processes, culture,
and employees
The truth about digital
5 things to remember
Transformation
Digital Transformation
is not a cost centre
It’s not about how much you spend
It’s about how much value you
create through change and people
Digital Transformation
is not a project
Digital transformation is a
permanent change in the
organisation’s cultural and
operational DNA
Digital Transformation
is not a crush-diet
Diets only work if they become part
of your life-style
The moment you stop your diet,
you go back to square one.
The same with Digital
Transformation
Technology alone is
just lipstick on pigs
Digital transformation is not about
technology, it’s a vision, a culture, a
new way to achieve new goals and
create value
No technology alone, without the
right integration, strategy,
implementation, or process will
deliver value by itself
You Cannot buy Digital
Transformation
There is no OOTB Digital
Transformation.
You can buy
• skills
• vision
• strategy
• tools
Few more take aways To make Digital Transformation happen
Digital transformation
is a way of being and
doing
Because digital transformation is
all about change and people
It’s a strategy and a vision
It’s not about money
It’s about culture
It’s about changing and leaving the
industrial operational model behind
and embrace a systems thinking
based approach
The ROI of Digital
Transformation
• To digitize legacy systems may
have a significantly lower ROI
than investing in R&D or
marketing on the short term
• But removing inefficiencies of
legacy systems and focusing
on the customers increases
potential for innovation by
enabling new feedback loops
and new data that provide
insights to improve products
and processes
Ultimately Digital
Transformation is
about managing
change
Defining the strategy and the vision
to lead organisations in the present
focusing on experiences and
values and putting the customer at
the centre
pat.Bertini@gmail.com
…Questions? Twitter: @Legoviews
