MOST Analysis

Mission Statement

More and more companies are adopting IT transformation and leveraging technology to improve every aspect of their business. As a company begins to implement and develop these tech solutions, IT leaders will have to be able to show the results of these changes. Tech leaders must be able to demonstrate the tangible business impact of IT transformation to their executive team, stakeholders and customers. KPI stands for key performance indicator, a quantifiable measure of performance over time for a specific objective. KPIs provide targets for teams to shoot for, milestones to gauge progress, and insights that help people across the organization make better decisions. From finance and HR to marketing and sales, key performance indicators help every area of the business move forward at the strategic level. It is critical that IT organizations and their business stakeholders set up Key Performance Indicators that align with new organizational goals.

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Objectives

01. Sustainability Metrics: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
02. User Lifetime Value; departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
03. Operational Improvement; departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
04. Revenue from New Digital Services; departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
05. Hours Saved & Efficiency; departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
06. ; departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
07. Workforce Productivity: departmental SWOT analysis; strategy research & development. 1 Month
08. Cloud Application Deployments: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
09. Focus on Innovation: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
10. Outbound Marketing: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
11. Team Morale: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
12. Risk Factors: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month

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Strategies

01. Sustainability Metrics: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
02. User Lifetime Value: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
03. Operational Improvement: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
04. Revenue from New Digital Services: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
05. Hours Saved & Efficiency: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
06. Customer Experience: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
07. Workforce Productivity: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
08. Cloud Application Deployments: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
09. Focus on Innovation: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
10. Outbound Marketing: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
11. Team Morale: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
12. Risk Factors: Each individual department head to undertake departmental SWOT analysis; strategy research & development.

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Tasks

01. Create a task on your calendar, to be completed within the next month, to analyze Sustainability Metrics.
02. Create a task on your calendar, to be completed within the next month, to analyze User Lifetime Value.
03. Create a task on your calendar, to be completed within the next month, to analyze Operational Improvement.
04. Create a task on your calendar, to be completed within the next month, to analyze Revenue from New Digital Services.
05. Create a task on your calendar, to be completed within the next month, to analyze Hours Saved & Efficiency.
06. Create a task on your calendar, to be completed within the next month, to analyze Customer Experience.
07. Create a task on your calendar, to be completed within the next month, to analyze Workforce Productivity.
08. Create a task on your calendar, to be completed within the next month, to analyze Cloud Application Deployments.
09. Create a task on your calendar, to be completed within the next month, to analyze Focus on Innovation.
10. Create a task on your calendar, to be completed within the next month, to analyze Outbound Marketing.
11. Create a task on your calendar, to be completed within the next month, to analyze Team Morale.
12. Create a task on your calendar, to be completed within the next month, to analyze Risk Factors.

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Introduction

What is a KPI?

The term “key performance indicator” refers to a measurable measure of performance over time for a specified goal. KPIs give teams with goals to strive towards, milestones to track progress, and insights to help everyone in the company make better decisions. Key performance indicators assist every element of the organization, from finance and HR to marketing and sales, move forward at a strategic level.

KPI Meaning vs Metrics Meaning

While key performance indicators and metrics are similar, they are not interchangeable. Here’s a basic rundown:

• KPIs are key performance indicators that you should monitor in order to have the most influence on your strategic business goals. KPIs help your team focus on what’s important and support your strategy. “Targeted new customers per month” is an example of a key performance indicator.

• Metrics track the success of day-to-day operations that support your KPIs. They have an impact on your results, but they aren’t the most important ones. “Monthly store visits” or “white paper downloads” are two examples.

Why Are KPIs Important?

KPIs are a vital approach to ensure that your teams are supporting the organization’s overall goals. Here are a few of the most important reasons to use key performance indicators.

• Keep your teams aligned: KPIs keep teams on track, whether they’re assessing project success or employee performance.

• Provide a health check: From risk concerns to financial indicators, key performance indicators give you a true picture of your company’s health.

• Make adjustments: KPIs allow you to easily see your achievements and shortcomings, allowing you to focus on what works and less on what doesn’t.

• Hold your teams accountable: Ascertain that everyone contributes value by establishing key performance indicators that allow employees to track their development and supervisors to take things forward.

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Types of KPIs

There are many different types of key performance indicators. Some are meant to track monthly progress toward a goal, while others are more long-term in nature. All KPIs have one thing in common: they’re all linked to strategic objectives. Here’s a quick rundown of some of the most prevalent KPIs.

• Strategic: These big-picture KPIs keep track of the organization’s objectives. Executives often use one or two key KPIs to determine how well the company is performing at any particular time. Return on investment, sales, and market share are only a few examples.

• Operational: These KPIs are focused on organizational procedures and efficiencies and often measure performance in a shorter time frame. Sales by area, average monthly transportation costs, and cost per acquisition are just a few examples (CPA).

• Functional Unit: Many KPIs are linked to specific functions, such as finance or information technology. Finance KPIs track gross profit margin or return on assets, whereas IT KPIs might track time to resolution or average uptime. These functional KPIs can also be classified as strategic or operational.

• Leading vs Lagging: You should understand the difference between leading and lagging indicators regardless of the type of key performance indicator you establish. While leading KPIs can aid in the prediction of outcomes, lagging KPIs are used to track what has already occurred. Organizations employ a combination of the two to make sure they’re tracking the most important information.

How to Develop KPIs

It’s tempting to measure everything—or at least the things that are easiest to measure—with so much data. However, make sure you’re just tracking the key performance indicators that will help you achieve your business objectives. One of the most significant parts of the KPI definition is the strategic focus. Here are some guidelines for creating effective KPIs.

1. Determine how KPIs will be used: Consult with those who will be utilizing the KPI report to learn what they hope to achieve and how they intend to use them. This will assist you in defining KPIs that are useful and relevant to business users.

2. Connect them to strategic goals: You’re wasting time if your KPIs have nothing to do with what you’re attempting to accomplish in your firm. While each key performance indicator may be related to a single business function such as HR or marketing, they should all be linked to your overall business objectives.

3. Write SMART KPIs: The most effective KPIs adhere to the tried-and-true SMART formula. Ascertain that they are Specific, Measurable, Attainable, Realistic, and Time-Bound. Some examples include “Grow sales by 5% per quarter” or “Increase Net Promoter Score 25% over the next three years.”

4. Keep them clear-cut: Everyone in the company should be aware of your KPIs and be able to act on them. This is why having a good understanding of data is so vital. People who know how to work with data are better able to make decisions that move the needle in the right direction.

5. Plan to iterate: You may need to adjust your key performance indicators as your business and consumers change. Perhaps some are no longer applicable, or you need to make adjustments based on performance. Make sure you have a process in place to evaluate key performance metrics and make changes as needed.

6. Avoid KPI overload: Organizations now have access to massive amounts of data and interactive data visualization, making it simple to measure anything and everything. Keep in mind that the definition of a key performance indicator refers to the most critical goals. Avoid KPI overload by concentrating on the most important metrics.

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3 Steps to a Stronger KPI Strategy

It’s time to change your approach if your key performance indicators aren’t generating the results you want. Here are three things you can do to guarantee that everyone in your company understands what your KPIs represent and how to utilize them to make data-driven business decisions.

1. Select KPIs that matter most: You should use a mix of leading and lagging indicators to make sure you’re measuring what important. Lagging indications help you analyze results over time, such as sales in the last 30 days. Leading indicators allow you to forecast what might happen based on data and make adjustments to improve outcomes.

2. Create a KPI-driven culture: If employees don’t know what key performance indicators are or how to apply them, they’re useless (including what the KPI acronym means). Improve your organization’s data literacy so that everyone is working toward strategic goals. To keep everyone making decisions that propel your organization ahead, educate staff, assign them relevant KPIs, and use a best-in-class BI platform.

3. Iterate: Revise your key performance indicators depending on market, customer, and organizational changes to keep them current. Meet on a regular basis to evaluate them, take a hard look at performance to determine if any changes are needed, and publish any modifications you make so that everyone is up to date.

IT Transformation Metrics & KPIs for Measuring Success

IT transformation is a difficult project. Many companies attempt large-scale transformation, but only about a third of them succeed. Traditional industries such as automatics, infrastructure, oil and gas, and healthcare, among others, find IT transformation even more difficult: only 11 percent succeed.

Many businesses approach IT transformation projects in this way: by digitizing the business’s operational model. Organizations utilize technology to replace manual procedures that are slow and prone to errors with scalable, automated digital workflows. (In fact, any DX effort must focus on three strategic areas.)

As a result, enterprises rely on metrics that track financial and operational efficiency to assess the effectiveness of their DX initiatives. The difficulty is that these measures aren’t always accurate in determining whether or not a digital transformation initiative is successful. According to McKinsey’s Digital Quotient study, only about 15% of companies utilizing financial Key Performance Indicators (KPIs) can effectively calculate the ROI on IT transformation efforts. Among the most common causes are:

• The slow budgetary cycle

• The lagging response of digital technologies on financial performance

So, in this section, we’ll look at a number of indicators and KPIs that are more suited to determining whether your IT transformation is succeeding.

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Choosing IT transformation metrics

It’s critical to locate the inflection point of the digital KPI growth trajectory once you’ve established and picked the KPIs you’ll use.

When 80 percent of your user base supports IT transformation, for example, you’ll maximize your financial ROI and operational efficiency. Increasing the adoption rate may necessitate disproportionately large financial investments and organizational policy changes, which could lead to the IT transformation project failing.

As a result, it’s critical to adhere to industry-proven best practices that have allowed industry leaders to push the envelope with their IT transformation projects:

1. Establish precise KPI objectives that are in line with your organization’s aims.

2. Concentrate on a small number of measures that are most important to accomplishing these objectives.

3. Confirm that the measurements can be reliably compared to past performance or accurate industry-accepted benchmark data. (The ADE Index, for example, analyzes how companies throughout the world are doing in terms of these activities.)

4. Make sure the metrics are quantifiable, accurate, and informative.

5. Obtain stakeholder buy-in to guarantee that the metrics results are accepted throughout the organization.

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Executive Summary

Chapter 1: Sustainability Metrics

Why IT Transformation Can Take Sustainability To New Heights

IT transformation and sustainability have developed through time, but even in the midst of the COVID-19 pandemic, organisations were able to accelerate their adoption of digital technology while keeping sustainability at the top of their priority lists.

From clean technologies to green production processes to converting a company’s brand as a sustainable corporation, these two themes will converge within an organisation. While attention is often focused on each of these developments separately, less attention is paid to how these trends interact to reshape how an organization can run profitably.

IT Transformation: A sustainable fit

Many firms may use sustainability as a spur to integrate digital technology into all aspects of their operations. Digital technologies such as artificial intelligence (AI), predictive analytics, machine learning (ML), and the internet of things (IoT) might help firms efficiently meet sustainability goals as the push for environmental responsibility grows. Here are a few examples:

• AI is assisting in disaster response, lowering air pollution, making renewable energy more accessible, and assisting in the energy efficiency of buildings.

• Machine learning and analytics are being used to automate environmental processes, predictive maintenance, and renewable energy projections for solar and wind power.

• Using IoT devices to aid with data collection, monitoring, and analysis of manufacturing processes, as well as measuring environmental implications.

Predictive analytics and business intelligence (BI) projects have witnessed a substantial surge in growth (49 percent) from major organisations beginning new analytics and BI projects or going through with initiatives that have already been planned, according to the latest survey by Dresner Advisory Services.

Sustainability: More than just a trend

Sustainability has changed from a “nice to have” to a “must-have” approach in the energy industry over the years, as corporations perceive sustainability programmes as a realistic strategy to help c