Keeping score on digital transformation

New research shows the impact of digital transformation on businesses around the world and finds they still have work to do.

There is no doubt that the app economy is rewriting the rules around how your customers interact with your business. Now, your customers are in charge, and have high expectations of your digital performance. They expect to be able to interact with your business on their terms.

Faced with these demands, you may be putting digital transformation at the top of your “to do” list. But how do you know when you’ve succeeded with digital transformation, and whether the initiatives you are driving are actually impacting the business?

Develop a digital transformation scorecard

This is the subject of a new research report titled Keeping Score: Why Digital Transformation Matters. To explore digital transformation among enterprises, CA Technologies commissioned Coleman Parkes to survey 1,770 senior business and IT executives in organizations from 21 countries and 10 sectors. And to assess the impact of their digital initiatives, we created a unique Digital Transformation Business Impact Scorecard.

The scorecard comprises 14 key performance indicators (KPIs) across four key areas of business performance as seen below. The study confirmed that the majority of respondents were using most if not all of these key metrics.

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The impact of digital transformation

The good news is that across these KPIs, our respondents reported a range of significant business benefits as a result of their digital initiatives:

  • Revenue from new business sources has increased by an average of 37%.
  • Customer satisfaction is up by 40%.
  • Speed-to-market has increased by 33%.
  • 74% have seen an improvement in customer experience.
  • 76% report an increase in digital reach

But we found that there is still tremendous opportunity to do even better. The organizations we studied averaged a relatively modest 53 out of 100 on our Digital Transformation Business Impact Scorecard, leaving plenty of room for improvement.

Digital adoption in emerging economies

Some of the best scorecard results came from enterprises in emerging economies. As you can see below, the greatest business impact is being delivered by organizations in India (with an average of 79 out of 100), Thailand (71), Brazil (69), Indonesia (66) and Malaysia (64).

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At first glance, this may seem surprising. But there’s good reason why companies in emerging economies may be reporting more positive effects. With digital adoption in these markets starting from a lower base, it could be that each digital investment a business makes gives it a keener competitive edge. At the same time, organizations in these countries are likely to be less burdened by legacy systems that can complicate digital transformation enormously.

Advanced users in certain sectors

The three highest-scoring vertical sectors on our Digital Transformation Business Impact Scorecard were telecoms (scoring 59 out of 100), financial services (57) and public sector (56).

The first two sectors will come as no surprise. The telecom industry is by definition a digital industry, and finance has always been a technologically advanced business. What’s more, both industries are having to grapple with the challenges posed by a new breed of pure digital competitors.

The public sector’s success may not seem so obvious. But the sector has been making significant investments in digital in recent years, given the need to improve citizen services with fewer resources. Their focus on improving responsiveness in the app economy was explored in another recent report by the Economist Intelligence Unit titled App Nations: Start-ups, States and Enterprises.

A continuing journey

Our analysis shows that businesses around the world are making progress with their all-important digital initiatives. But they have a way to go to realize the full business impact of digital transformation.

As you continue on your transformation journey, you’ll need to understand the impact your digital investments are having, and the return they are generating. Make sure you take a robust approach to measuring the impact of digital transformation, based on the business performance indicators that matter.

For full details on this new research, download Keeping Score: Why Digital Transformation Matters or visit www.ca.com/rewrite.


Jackie is a 30-year IT industry veteran, holding senior management positions in marketing, business development…

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