How healthy is your business? Or to place the question into a more strategic context: how will digital transformation impact the health of your business? Furthermore, how will digital transformation change the way you measure your business health?
Traditional measures of business health depend upon a variety of financial key performance indicators (KPIs). Basic KPIs like revenue and profitability are important, but bean counters over the years have come up with several more accurate indicators.
How well an organization’s strategic investments pay off is an important measure of its business health: the return on invested capital relative to the cost of that capital. These KPIs reflect the intrinsic value of an organization, centered on the value of discounted cash flow – how much money it can put in its pocket.
These metrics, in turn, drive the capital market value of a company: either its share price for publicly traded firms, or its market value for the purposes of pricing an acquisition of the company.
Fair enough. Nobody will argue that such financial metrics are central to measuring the health of an enterprise. What’s lost in the shuffle, however, is any mention of the customer.
Read the entire article at http://cxblog.dynatrace.com/index.php/2016/06/09/measuring-business-health-digitally-transformed-enterprise/.
Dynatrace is an Intellyx client. At the time of writing, No other organizations mentioned in this article are Intellyx clients. Intellyx retains full editorial control over the content of this article.
