The Difficult Art of Quantifying Return on Digital Investments
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Most companies today are struggling to measure the impact of digital initiatives. Even among digital leaders, nearly one in two organizations do not create business cases for digital investments. Why are companies struggling to measure digital investments? How can they measure their digital initiatives? How should organizations plan their digital investments?
Transcript of The Difficult Art of Quantifying Return on Digital Investments
The Difficult Art of Quantifying
Return onDigital Investments
Why is it difficult to evaluate returns from
digital technologies?
Most companies are struggling to quantify the impact of digital
transformation
How can organizations measure digital initiatives?
CxOs are unfamiliar with language of click-throughs, likes, sentiment analysis
Rapidly evolving technology landscape makes it challenging to make long-term decisions
Only 19%
Making the wrong bets
Measuring digital impact is hindered by a siloed approach
The language of digital is typically alien to C-suite leadership
Sources1. Capgemini Consulting and MIT Research2. The CMO Survey, “Highlights and Insights”, February 2014
3. Capgemini Consulting and MIT Research4. CFO Services, “Uncrossing the Wires”, March 2012
of companies create business cases for digital initiatives
Only half
50% of CMOs say they haven't been able to show the impact of social media on their business
#digitaltransformation
Supports organization-wide transformation such as Central Platforms
Segment digital invesments in broad categories
Nascent Technology such as Mobile Apps and 3D printing
Pre-requisite for business such as website maintenance, IT securityand compliance
Reach out: Interested in reading the full report? Head to http://www.capgemini-consulting.com/measuring-digital-investmentsFollow us on Twitter @capgeminiconsul or email [email protected]
Maintenance / ‘Business As Usual’ Investments
Transformative Investments
Emerging Digital Investments
have cross-functional steeringcommittees that manage and foster digital investments
Maintenance / ‘Business As Usual’Investments
Emerging Digital Investments
Transformative Investments
No business caserequired
Cost-intensive and distributed benefits
Funded centrally
Clear investmentgoals
Track against traditionalproject metrics
Adopt a venture capitalist approach
Make small investments in a variety of ideas
Identify ideas with potential and shut-down others
Employ different measuring approaches for each investment category
