When Will a Company Start to See an ROI on Their Digital Transformation?
When will a company typically see a return on investment (ROI) on their digital transformation?
[Jason Chisholm] So Chandler, as we're starting to get to the end of this journey in digital transformation, I think return on investment is probably one of the biggest driving forces for any organization. So at what point would an organization expect to see some return on this as they go through it?
[Chandler Stevens] There's a lot of ways you can look at ROI, and I think obviously there are industry norms, and every organization has a way for them to kind of think about what does ROI mean to them. For me, I look at it in terms of a couple of different areas. One is a better customer experience. For those organizations that are in the service industry or perhaps have a variety of different customers, having a better customer experience is obviously one of those areas where you can see a very quick return on investment by embracing digital transformation.
Enhanced brand reputation is another one. Again, with this notion of embracing new customers or building a customer base, having a strong brand aligned with a digital transformation strategy is oftentimes a very quick—not quick—but a very straightforward way of understanding the impact one's having in their respective industry.
Moving to the operational side, having streamlined operations is important as well. If you think about what it takes today for an organization to maybe get out of PO prior to a digital transformation effort and then applying digital transformation capabilities and seeing what increase of velocity that process can be and streamlining the operations. That's an important area to focus on as well.
And then, kind of the one that really, I think most everyone understands is increase in sales. Are we seeing more opportunities come our way? Are we seeing an increase in our sales, not only from a quantity perspective but from just a pure volume perspective in terms of the deals that are growing as a result of being able to embrace digital transformation capabilities?
[Jason Chisholm] Can I just say, as a sales professional, that's probably one of my most favorite ones.
[Chandler Stevens] Okay, yeah no doubt.
It's a favorite of a lot of folks as well because obviously increased sales leads to a lot of different things down the road. And again, having increased sales results in having the ability to go back and reinvest, and again kind of goes back to my earlier comment about the snowball effect. That could be one of those areas where once sales goes up, then you're able to make some investments and start really, again, applying more digital transformation capabilities across the organization.
One other one I want to make sure—we talked about this earlier, but I think it's important to mention, is the improving management decisions, again, based on data. Having analytics and having information to really look carefully at a business operation or even any sort of operation that has a number of data points along the way—that's an important part of the ROI discussion because having better decisions, again, can yield better investments, can yield, of course, a better outcome, and a better reach for customers. So those are all things that really fall into mind when you think through the return on investment.
[Jason Chisholm] That's great information because I think it's quite possible that most people just focus on that initial cost—
[Chandler Stevens] Absolutely.
[Jason Chisholm] —or whatever that price tag is associated with that, and I think what you're telling us is that it's a much deeper conversation than that.
[Chandler Stevens] It is. And I'd say one last thing I'd want to mention is this notion of company culture. We talked a little bit earlier about brand. The company culture that encourages creativity and innovation is another hallmark, I think, of digital transformation. And we know that today we have a workforce entering that is very highly digitally sophisticated. And so organizations that are willing to really look at how they can invest and not only attract that top talent, but retain that top talent, it's important to understand how digital transformation factors into those discussions.
[Jason Chisholm] So to simplify that last statement, if you're looking to recruit great talent and retain that great talent, you probably want to have an environment that meets expectations.
[Chandler Stevens] That's right. You don't want to have an environment that looks like 1995. You want an environment that has a more modern approach to collaboration, a more modern approach to allowing individuals to connect with one another, regardless if they're in the same department or the same team, and the ability to really have a high innovation cycle so that new ideas can be brought to bear at a much quicker fashion without having to go through some of the old processes.
[Jason Chisholm] Excellent. Well, thank you, Chandler. I appreciate that, and thanks a lot.
[Chandler Stevens] Thank you, Jason.
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