Measuring the success of digitalisation projects is tough!
"Not everything that can be counted counts and not everything that counts can be counted." This quote is attributed to Albert Einstein and captures the challenge of measuring the success of digitalisation projects. Fundamentally, what you measure, or conversely don’t measure, may change whether the project is considered a success or not.
In 2021, Michael Wade and Massimo Marcolivio wrote an article titled "Measuring Digital Transformation". They argued that the application of appropriate KPIs (key performance indicators) is essential for the success of digital transformation initiatives. They also highlight the challenges of finding and applying the right metrics or measures by which the success of a project can be assessed.
Currently, there are conflicting opinions on how to measure the success of digitalisation projects. Some stakeholders are in favour of the use of a set of predetermined KPIs as a basis for assessing the progress of a digitalisation project, while another group of stakeholders are of the opinion that an “output” versus “outcomes” approach should be adopted. There is also a divide between the use of purely financial metrics, non-financial metrics, or a combination of both.
While Einstein believed that not everything that counts can be counted, Galileo Galilei argued that “measure what can be measured and make measurable what cannot be measured.” The implication being that irrespective of our inclinations (whether it is financial or non-financial metrics, or a combination of both), we need to develop metrics capable of assessing all relevant indicators.
In conclusion, it is generally agreed that a key imperative for successful digitalisation projects within companies is the ability to properly assess progress towards the identified business goals that led to the initiation of such digitalisation project in the first place. This would enable the relevant stakeholders to make the necessary adjustments, and ensure that resources are reallocated along the way, based on real numbers.
Author’s Profile
Dr Fortune Nwaiwu is an expert in ICT for Development and Digital Transformation. He has a Ph.D. in Economics and Management from Tomas Bata University, an MBA from Nyenrode Business University, and an MSc. in Security and Risk Management from the University of Leicester. His research interests are on Digital Transformation in business organisations and development economics. He was previously a Business Transformation Manager (mKTP) at Liverpool John Moores University, and is now a Research Associate at the Centre for People-Led Digitalisation, University of Bath.
If you would like further information on this research, please email: p-ld@bath.ac.uk