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HomeResourceHow To Increase Returns On Your Digital Investments?

How To Increase Returns On Your Digital Investments?

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Return on Investment, or ROI, is a measure of how easily a business’s investment is used. By using ROI, companies may easily determine the return on a specific investment relative to the cost of the investment. ROI proves to be profitable in the long-term. However, if you want to increase the returns on digital investments, you have come to the right place. In this article, we are going to talk about ways to increase the returns on your digital investments. Keep reading to learn about the transformational steps to increase the revenue of your companies to a greater extent.

Step 1: Select a digital transformation objective to establish a ROI objective

For a set amount of time, businesses should concentrate on just one digital transformation objective. It needs to be the most crucial objective and benefit the whole business. Businesses can more efficiently utilize their existing resources by planning precise plans and using the right supply chain tactics when they have a single aim in mind.

For instance, what if company A wishes to increase fleet productivity or distribution network visibility? If consumer demand for the festive season causes a growth in the number of reservations for A at this time, the objective of “increasing fleet productivity” will be prioritized in order to actually deliver to the customer as soon as possible.

Companies can set the appropriate ROI target based on the goal of information technology. In an effort to maximize fleet efficiency (the aim of digital transformation), company A looks to a path optimization tool, which speeds up the creation of transportation plans and raises the vehicle stock levels for producing efficient supply chain.

Step 2. Evaluation and Review of the Pricing Structure

Pricing structure digital investments

Additionally, companies should evaluate their present cost structure:

  • What uses are most cost-effective?
  • Which activities are still not profitable?
  • Do you need to make any additional investments or cost-cutting measures?
  • What changes are necessary for the current pricing structure to meet the objectives of the digital transformation?

Let’s say a company A wants to spend money on fleet productivity-boosting transportation management software. Leaders must therefore gather to examine the current pricing structure and make necessary adjustments.

Step 3: Evaluate ROI using a range of metrics

Different measurements will be needed for each ROI objective. The approach for measuring digital return on investment (ROI) focuses on six main areas: infrastructures, interruption and innovations, activities, safety and legality, and consumers.

Step 4: Establish Timetables To Assess ROI

Businesses must establish clear deadlines for measuring ROI, which may be after a month, a quarter, six months, or in accordance with the project plan, in order to do so promptly and properly.

There will be a set timeline for measuring each parameter. Businesses have the choice of measuring each indicator individually to make the necessary corrections or opting to test the complete index to gauge the success of the digital transformation.

Step 5: Continue to assess ROI and make appropriate investment strategy adjustments

By examining ROI results over a short period of time without contrasting them to results over longer periods of time, leaders find it challenging to determine if digital transformation is beneficial or not. Businesses cannot anticipate good outcomes in only one or two days because digital transformation is a lengthy and difficult process of change.


ROI has an unquestionable part in digital transformation. Businesses can learn how effectively their capital use and investment increase their transformational operations using this index. A high ROI demonstrates that the company’s investment strategy is well-defined and on track. To have a complete understanding of the business and make informed decisions, leaders must also integrate analysis and comparison with other relevant indicators.

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