Digital transformation requires new financial metrics

Again participating in the latest issue of CFO World.

As digital enables new entrants to reshape whole industries with new ways to create value, transformation isn’t optional but imperative to incumbent businesses. In order to succeed, digital transformation requires new financial metrics in order to succeed across the organization, thus being highly relevant for forward-leaning CFOs to take part in.

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Instead of focusing on governance with to much of a focus on minimizing risk, businesses will need to adopt to more guiding principles with a focus rather on capturing opportunities – and, maybe more important, failing fast and learning from failures even faster. Examples of metrics and KPIs in order to  promote innovation and learning could be number of transformational initiatives, time and cost to failure, value and quantification of learnings and gradually increasing success rates.

The article is only available in Swedish in CFO World #44 (starting at page 32).

 

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Christoffer Vollmer

Strategist, project manager, economist, change agent & experience designer with almost 20 years experience of digital strategy, transformation & disruption. Blogging about strategy, disruptive innovation, design thinking and digital transformation.