Digital transformation investments are ultimately about business survival through disruption. Such investments have a direct impact on customer expectations and go beyond the traditional ROI. The business case for such disruptive investments is the focus of my upcoming report, Build Your Digital Transformation Business Case Around The Customer And Revenue Growth. The scope for disruption spans the entire customer life cycle, affecting everything form the supply chain to after-sales support. The key takeaways from this report:
Disruptive transformation must be viewed as a strategic investment. The real value of digital transformation investments relates to long-term revenue growth, not short-term technology ROI. Bolt-on digital projects do not change the fundamental value relationship that you have with your customer. To maximize the impact of digital investments, business and technology leaders must learn to value such investments through the eyes of the company’s customers.
A classic ROI calculation is neither always feasible nor desirable for digital investments. Digital transformation changes business processes and models. ROI works for single digital initiatives, but not for shifts in business models. Digital investments aimed at disruptive change across the enterprise challenge traditional ROI calculations. Attributing benefits like customer satisfaction, group productivity, and group revenues — let alone business survival — to a single digital investment is impossible because so much of the impact of digital transformation is cumulative.
My colleague Jenny Wise and I just updated the business case report of Forrester’s mobile marketing playbook with new data, examples and primary research.
B2C Marketers know mobile is a strategic imperative but the vast majority don’t strategically integrate it in their marketing-mix with only 13% saying they do so systematically. Only 27% of marketers we surveyed told us the ROI of their mobile marketing campaigns was profitable and a stunning 67% told us they simply cannot measure it!
Why? Because marketers:
Don’t align objectives and KPIs. There is a misalignment between their top objectives — improving customer satisfaction and transforming customer experience, which they barely track.
Can only start to benefit from vendors’ advanced ROI tools. Greg Stuart, CEO of Mobile Marketing Association, sums it up better than anyone else: “It seems crazy that CMOs haven’t pushed vendors to do marketing mix measurement comparing TV, mobile, and all other media and that the MMA, working with our research partners, is the only entity to have developed an industry methodology for an opportunity this obvious and big”. You can find out more on MMA's SMoX research here.
Find it difficult to measure the impact of mobile on other channels, especially offline.
Have limited mobile expertise of their own.
Can’t prove they need it to take budget from existing pools.
Rule #1. Don't just jump into creating a hefty enterprise wide Business Intelligence (BI)
Business intelligence and its next iteration, systems of insight (SOI), have moved to the top of BI pros' agendas for enterprise software adoption. Investment in BI tools and applications can have a number of drivers, both external (such as regulatory requirements or technology obsolescence) and internal (such as the desire to improve processes or speed up decision-making). However, putting together a BI business case is not always a straightforward process. Before embarking on a BI business case endeavor, consider that:
You may not actually need a business case. Determining whether a BI business case is necessary includes three main considerations. Is it an investment that the organization must make to stay in business, should consider because other investments are changing the organization's IT landscape, or wants to make because of expected business benefits?
A business sponsor does not obviate the need for a business case. It may be tempting to conclude that you can skip making a business case for BI whenever there is a strong push for investment from the business side, in particular when budget holders are prepared to commit money. Resist this impulse whenever possible: The resulting project will likely suffer from a lack of focus, and recriminations are likely to follow sooner or later.
Deanna Laufer and I are collaborating on a new report on how to make the case for customer experience in B2B. And we'd love your inputs.
How will clients benefit from this report?
With longer sales cycles, fewer customer accounts, and an abundance of client roles and influencers, B2B companies are challenged in making the link between improving customer experience (CX) and financial results. But without this link, B2B companies will struggle to get adequate funding to sustain their CX programs over the long term. To help CX professionals at B2B companies overcome challenges to justifying their CX programs, this report will explore:
What do customer and business data CX pros need to collect to support their business cases?
Which are the right metrics for modeling the relationship between customer experience quality and business success?
How can CX pros apply their models to proactively improve business outcomes?
Initial business intelligence (BI) ployment efforts are often difficult to predict and may dwarf the investment you made in BI platform software. The effort and costs associated with professional services, whether you use internal staff or hire contractors, depend not only on the complexity of business requirements like metrics, measures, reports, dashboards, and alerts, but also on the number of data sources you are integrating, the complexity of your data integration processes, and logical and physical data modeling. At the very least Forrester recommends considering the following components and their complexity to estimate development, system integration and deployment effort:
What if there was an easy way to increase employee productivity by 10% using the technology that’s already in place? What would that do to the bottom line? Even a 1% gain would be significant for most large organizations. In this day and age when CIOs are competing for budget and every dollar of technology investment must be justified, CIOs should not overlook training as a means to boost employee productivity and the ROI of existing technology investments.
Unfortunately it seems that too few people really know how to use the applications they have available in an effective way. Take for example the proliferation of spreadsheets in the workplace. Tools like Microsoft Excel have amazing features that support some powerful analysis and reporting. Yet many people fail to utilize basic productivity features built into such applications. We probably all observe people misusing tools and completing work the hard way simply because they don’t know any better. And Excel is just one tool that many of us use day-in-day-out. Outlook has some amazing features to boost productivity but few people know how to take advantage of them.
Even where some level of training in core ERP applications is provided to new employees, we know that very little is actually absorbed in early training. And much of IT training is focused on what buttons to press in what sequence to get a job done; very little seems to focus on how to use all the technology together as part of a productive business process.