What are digital KPI frameworks?

When a company or a business function changes its products, services, and the associated experiences, it is essentially changing its fundamental value promise. The behavior of a product or service changes and, along with it, so do the expectations of all stakeholders—be it customers, employees, partners, influencers, or regulators.

Consequently, how companies measure the performance of such a product, service, or process that delivers experiences must also change. This is where the notion of “Digital Key Performance Indicators” comes in. Digital KPIs become the objective, quantifiable standard that a company, a function, or a business/IT operation needs to achieve.

How KPIs drive effective transformations

Transformational initiatives are iterative and begin with a clear, data-driven analysis of where a company is and where it needs to go. The most effective way of doing this is through Benchmarking. From there, leadership must develop priorities and break down the long-term goals into short, iterative cycles consisting of process or model changes coupled with implementation of digital technologies.

The only way to objectively measure the effectiveness of a digital initiative is by use of KPIs. However, by moving the design of these KPIs upfront and before the actual start of digital initiatives, leadership develops clarity of specific outcomes to target. Each iterative execution cycle gets you closer and closer, ultimately surpassing the target performance threshold. Digital KPIs thus anchor the entire process of transformation planning, execution, and outcomes.

The Trianz digital KPI frameworks

Based on our multi-year research on digital transformations worldwide, Trianz has developed conceptual frameworks that visualize each major business operation or function post-digitalization. In these frameworks, we outline the sub-functions of a business and the underlying digitalized processes. Extending this visualization is a series of post-digital KPIs developed for every major function in the company.

During our engagements, we will tailor these KPIs to your specific industry and company as well as add more through mutual discussions.

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