Introduction
According to Gartner, over 50% of CSCOs plan to invest heavily in digital transformation during the next 2 years. In such a scenario, measuring success has become very crucial for successful transformations.
Almost 88% of the digitisation initiatives have failed to meet their objectives because of insufficient setting and monitoring of KPIs.
To ensure successful results, Supply Chain leaders must adopt a holistic approach that goes beyond deploying new tools or technologies. This article presents a five-element framework to measure the success of digital transformation projects, focusing on process performance, tool adoption, ROI, and stakeholder satisfaction — both internal and external.
With this framework, organisations can obtain a clear overview of their digital initiatives, enabling them to refine strategies and maximise the value of their investments.
1. Process KPIs
Tracking key process-specific KPIs is crucial to measuring the success of a given digital transformation. These KPIs will be used to confirm that the transformation has improved the process.
For instance, in a digital transformation that targets a sales forecasting process, process KPIs might include: Forecast accuracy, MAPE and Forecast Bias, to measure how well forecasts match real sales.
2. Tool adoption rate
One key success factor in digital transformation is users’ adoption of the new tool deployed as part of this transformation. Typically, a tool deployment is considered successful only if it can be integrated into daily workflows performed by employees.
To help with that, nearly 79% of companies invest in training programmes to accelerate the adoption and reduce resistance to change, according to an APQC survey.
Key metrics to measure the adoption include:
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Active users: This is the percentage of employees using the tool regularly.
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Process compliance: This is the level at which the entire process is executed within the new system.
Monitoring these metrics will help companies get alerted and, later on, work towards identifying and implementing adjustments, such as additional training or interface improvements.
3. Return on investment (ROI)
Measuring the ROI is essential to help leadership understand and assess the overall value of a digital transformation project. A robust assessment of ROI needs to look beyond cost and include operational and human benefits.
Key dimensions of ROI evaluation could include:
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Technology costs: Investments in software, infrastructure, and support.
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Speed of adoption: The pace at which the new solution is fully utilised by teams.
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Proficiency: The level of competence users achieve in leveraging the tool’s functionalities.
Regular ROI monitoring allows organisations to validate their investment decisions and ensure long-term value creation.
4. Internal stakeholders’ satisfaction
A successful digital transformation must be able to integrate coherently with the functioning of internal teams, especially those impacted by cross-functional changes (by providing inputs or consuming process results).
According to Gartner, the top 25 Supply Chain organisations are investing significantly in change management to foster alignment and support across departments.
To measure internal stakeholder satisfaction, organisations can:
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Conduct surveys: Gather quantitative and qualitative feedback from impacted teams.
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Analyse friction points: Identify challenges related to process integration and address inefficiencies.
High internal team satisfaction indicates that the transformation is positively influencing collaboration and productivity.
5. External partners’ satisfaction
Digital transformation should also improve relationships with external stakeholders, including suppliers and customers. Very often, supply chain leaders report that digital ecosystems improve collaboration and risk management.
Depending on the context of the transformation, key indicators of external satisfaction may include:
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Supplier collaboration: The quality and fluidity of interactions with suppliers.
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Customer satisfaction (NPS): Measure of customers' likelihood to recommend the company. It could be used as a survey for a specific topic as the impact of a new tool deployment or new ways of working.
By focusing on external satisfaction, organisations will strengthen their strategic relationships and improve their market competitiveness.
Example of a dashboard with some KPIs to monitor
Conclusion
A structured approach to monitoring and measuring the success of digital projects is essential. Indeed, by applying this framework, you ensure that you have a holistic vision and that the initiatives taken will consequently ensure real value creation.
If you have any questions on this topic or would like to discuss how to improve the tracking and measurement of the success of your digital transformation projects, feel free to reach out to us. Our teams are ready to assist you in exploring these critical areas and ensuring the success of your initiatives.
