It is difficult for companies to quantify returns on digital investments for several reasons. C-suite executives are often unfamiliar with metrics like click-through rates and sentiment analysis that are used to measure digital performance. The rapidly changing tech landscape also makes long-term decision making challenging. Only 19% of companies create formal business cases for digital projects, and half of CMOs can't show the impact of social media on their businesses. To address this, companies should segment digital investments into categories like maintenance, emerging technologies, and transformative initiatives, and employ tailored measurement approaches for each.

1. The Difficult Art
of Quantifying
Return on
Digital Investments
Why is it difficult to evaluate
returns from
digital technologies?
Most companies are struggling
to quantify the impact of digital
transformation
How can organizations measure
digital initiatives?
CxOs are unfamiliar with language of
click-throughs, likes, sentiment analysis
Rapidly evolving technology landscape makes it
challenging to make long-term decisions
Only 19%
Making the wrong bets
Measuring digital impact is hindered
by a siloed approach
The language of digital is typically alien
to C-suite leadership
Sources
1. Capgemini Consulting and MIT Research
2. The CMO Survey, “Highlights and Insights”, February 2014
3. Capgemini Consulting and MIT Research
4. CFO Services, “Uncrossing the Wires”, March 2012
of companies create
business cases for digital
initiatives
Only half
50%of CMOs say they haven't been
able to show the impact of social
media on their business
#digitaltransformation
Supports organization-wide
transformation such as
Central Platforms
Segment digital invesments in broad categories
Nascent Technology such as
Mobile Apps and 3D printing
Pre-requisite for business such as
website maintenance, IT security
and compliance
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Maintenance / ‘Business
As Usual’ Investments
Transformative
Investments
Emerging Digital
Investments
have cross-functional steering
committees that manage and foster digital investments
Maintenance / ‘Business
As Usual’Investments
Emerging Digital
Investments
Transformative
Investments
No business case
required
Cost-intensive
and distributed benefits
Funded centrally
Clear investment
goals
Track against traditional
project metrics
Adopt a venture
capitalist approach
Make small investments
in a variety of ideas
Identify ideas with
potential and shut-down
others
Employ different measuring approaches for each investment category