Every strategic roadmap needs a plan for tracking success – and the same holds true for your digital strategy. After all, your technology infrastructure usually comes with a significant price tag, so be sure to plan how you’ll gauge your return on investment.
These discussions should happen as you develop your digital roadmap and infrastructure – not after. Before you get started, here are five things to consider to maximize the ROI of your technology investments:
- Think big picture. When you’re considering which metrics to apply to your technology, scrub those against your overall business metrics as well. You’ll want to be sure the data you’re collecting will give you the entire picture you need. You should build your technology infrastructure in concert with your business strategy, so you should measure them in tandem as well. Resist the urge to look at the ROI of a single piece of technology in isolation.
- Look in the rearview mirror. What technology metrics have been useful in the past? What measurements have revealed where you’re having high or low impact? Those insights can inform how you currently analyze the impact of your digital investment.
- Consider alternative costs. To draw an accurate picture of your investment, consider the cost of the status quo. What’s the drag your current digital line up has on your business? How would you measure that – and would a stronger technology infrastructure offer you significant lift?
- Ask yourself the obvious. To establish what to measure, think about why you’re in business. Ask yourself – why am I doing this? How will this technology make my business stronger? My employees more effective? My customers happier? When we consider large investments – especially technology – it’s easy to overcomplicate any analysis. Start simple and build from there.
- Go beyond the formula. The basic ROI formula is startlingly simple: ROI = (Gains-Cost/Cost). But just as your technology platform should be unique to your business needs, so should your analysis. No doubt, you’ll consider the hard data and measurable gains. But what about other factors like employee satisfaction, customer impact, better usability. Those more ephemeral variables can also have an impact.
The bottom line: Build metrics that matter because the truth is in the data. Need help? Contact your MarksNelson Smart Technology professionals at 816-743-7700 to learn more about our Digital Solutions Assessment. We can help you create a digital roadmap that's coordinated with your business objectives.