Emerging Trend Analysis – What is Digital Performance Management?Go Back
- Posted by Nicola
The last few decades have seen increasing amounts of digital transformation in various organizations. This transformation is slated to grow at the compound annual growth rate of 16.7% and reach $1.97 trillion by the year 2022 according to a report of the International Data Corporation (IDC). Almost all the aspects of a business, such as marketing to the existing and potential customers, communicating with them, selling the products and services, customer representation and much more is done digitally through the internet. This growing trend of digitalization has also led to the development of several other processes, such as Digital Performance Management.
What is Digital Performance Management?
Digital Performance Management or DPM is the process by which organizations can monitor the performance levels and productivity of digital transactions and applications. As more and more digital applications are been added to the organizational structure of the businesses, it is important that their performance is measured so that businesses understand the ways in which they excel and those which need to be improved. The traditional performance management system consisted of several subsystems which focused on only one aspect of the business. For example, those managing the performance of the marketing would focus only on marketing; those managing the performance of sales would focus on sales and so forth.
Traditional vs. Digital Performance Management
Each performance management subsystem or team had different objectives. Most significant among them was the difference in the objectives of the business performance management subsystem of the organization and IT performance management subsystem. The business performance management subsystem focused on the numbers of sales, profits, conversion rates, and customer, whereas the IT performance management subsystem focused on running the business, its websites and digital applications, their speed, content, and other such aspects. Digital Performance Management has revolutionized the way that businesses carry out performance management by combining the different objectives and providing all the subsystems with the same objective of measuring the performance of every organizational activity in terms of customer satisfaction and the value added to the business.
How does Digital Performance Management help?
Digital Performance Management basically combines two different activities. First, measuring the performance of the applications from a technological point of view, such as their responsiveness and timing. Second, understanding and measuring the business performance such as the number of users, conversion rate, and time spent on the applications, abandoned cart recovery, and more. DPM basically forms the intersection of traditional performance management subsystems. It enables everyone in the organization to understand the performance reports as it uses common terms which are familiar to everyone. It also eases the process of developing new strategies as everyone is working towards the same goal. Moreover, the various parts of the organization can also collaborate for developing common strategies to optimize the customer experience.
How Would Digital Performance Management Benefit You?
Some benefits of adopting the Digital Performance Management systems in the organizations are:
- It helps to understand the real-time problems in the digital customer experiences as well as to give insights on them by combining the business and IT data.
- It also enables the organization to provide genuinely personalized customer service to everyone.
- By providing an improved digital experience to the customers it helps to create a healthy and strong brand image, which in turn helps to set itself apart from its competitors and to increase the market share. It also fosters brand loyalty among the customers.
- It can also help to save the time of the organization and its workforce by using only one performance report with all the integrated data and facilitating the use of only one strategy throughout the various departments of the organization. The time thus saved can be used to add value to the business.
- Because the data is presented in a common term which can be understood by all the departments, it helps to make better decisions by the organization as a whole. All the stakeholders can understand the data and thus can provide their opinions on all matters.
Digital marketing companies understand the need for focusing on the customer experience. It not only helps to create and revitalize the brand of the business but also to maximize the profit by forming powerful strategies. They help to increase the online presence of the business on various platforms to connect with the existing and potential customers and market the products and services of the business to the targeted audience. Digital marketing companies also conduct market research to understand the needs of the customers. The result of the market research also helps to improve the digital performance management in the organization by enabling the departments to modify the products and services to cater to the exact needs of the customers. Therefore, helping the organization to reach a broader audience and increase its productivity and profitability.
Author Bio– Sawailal Jangid is a Software Analyst at SoftwareSuggest. He is very enthusiastic and optimistic towards his work. He loves to dig deep into various categories of software. In a free spare of time he enjoys doing sports activity.