“Digital Strength may be the most important determinant of business health and future growth, not being measured, many managers are missing the digital signals that could help them better compete.”
Digital transformation isn’t simply about enhancing traditional approaches to whatever your organization does, but about using digital technology to find new, innovative and creative ways of approaching, accomplishing, and accelerating your organization’s activities, Today, almost every business is focusing on how to drive profitability through digital. Many business leaders are finding that traditional metrics underestimate the impact of digital, leaving their organization vulnerable to competitors.
BUILDING BLOCKS OF DIGITAL STRENGTH
SIZE OF A COMPANY’S DIGITAL PRESENCE
Essentially the size of your digital footprint and impact. It is the sum total of your website visits, page views, social media visits, views, shares, etc. You want to be able to understand your digital magnitude in relation to your competitors and competitor peer set. Bigger businesses with larger customer files are high on Magnitude.
SHARE OF DIGITAL RELATIVE TO SHARE OF TOTAL
The competitor peer set mentioned in the previous point is also a crucial component of your digital share. Share contextualizes the volume of digital customer interactions relative to overall size of the business, its customer base, and total revenue.
DIGITAL MEASURES WITH POSITIVE SEQUENTIAL ACCELERATION
Digital Momentum is your digital strength increasing or decreasing in relation to your competitors, and how quickly is this happening? Calculate this by tracking customer interactions – likes, followers, etc. – for both your organization and your competitors. Use a variety of measures to monitor this – from month-to-month to year-on-year – so that it is easier to discount seasonal changes in momentum.
REVENUE GROWTH PROJECTION BASED ON CHANGE IN DIGITAL INTERACTIONS
Growth is the translation of change in digital velocity to forward-looking topline revenue growth expectations for a business. A yearly percentage change in topline growth will result in revenue growth.