Digitalization ROI: Is Your Company Gaining Real Value from Technology? WHEN "LOOKS COOL" IS NO LONGER ENOUGH

In recent years, digitalization has emerged as a key theme in both company strategies and leadership discussions. “We need a CRM.” “Let’s automate.” “Let’s add AI.”
Initiatives are launched, tools are chosen, implementation begins — all with the hope that these changes will transform the business.

Especially with the rise of artificial intelligence, digitalization promises new opportunities — but it also raises the pressure to measure real returns and ensure those investments are actually paying off.

Leaders confidently present new tools to the board. Vendors are selected, training sessions take place, and teams start adjusting to the new way of working.
On paper, everything looks great. And for a few weeks or months — it really does feel “cool.”

But then comes the quiet phase.
The initial enthusiasm fades. Daily routines return. And in the background, unspoken doubts begin to surface:
Is this tool actually helping? Is it making a difference? Did we really need something this complex?

Technically, everything is in place. The checklists are ticked.
But the sense of change? It fades quickly.
The system is there, but is it working?
Are things easier for the team?
Faster for the customer?
Did this actually make the company more efficient?

That’s when it’s time to pause and ask one simple but important question:
Are we getting real, measurable value from this solution or can we just say we’re “digitalized”?

Unfortunately, this question often goes unanswered.
Research shows that only around 30% of companies fully achieve the expected ROI from digitalization projects (McKinsey & Company).
Not because the technology fails, but because there’s no clear, shared approach to measuring impact.

In this article, we’ll share a practical perspective on how to evaluate digital ROI across multiple dimensions.

HOW TO MEASURE DIGITALIZATION ROI WHEN ROI IS MORE THAN JUST A NUMBER

Here we come to ROI, or Return on Investment - a metric that shows whether an investment in technology pays off. Theoretically, the simple formula is:
ROI = (Total savings – Investment costs) / Investment costs × 100

However, in practice, this calculation is often unclear because the “benefits” cannot always be expressed solely in monetary terms. They often manifest as improved quality, speed, and work efficiency. How do you calculate the value of fewer data entry errors or the fact that projects are completed on time?

To assess changes, it is crucial to define the initial or “baseline” metric level before the project starts, against which later results can be compared. Without such a reference point, proving the return is difficult.

Emotional feelings like “easier” or “less chaotic” are good signals, but in business, concrete numbers are required. A manager who can translate these feelings into measurable benefits is able to justify the investment’s value to both the board and investors.

Digitalization ROI is not a simple number; it manifests on multiple levels. While not all improvements have an immediate “figure,” it is almost always possible to calculate or at least model them. This approach is based on the modern operating model concept developed by McKinsey, where sustainable business growth is evaluated through 3 interconnected dimensions:

1. Operational efficiency

2. Strategic adaptability

3. Human capital capabilities

To provide a clear and practical view of each dimension, we offer tables with specific indicators and metrics below. These examples will help understand how hard-to-measure benefits can be transformed into concrete, monetarily quantifiable results, which serve as a basis for evaluating digitalization investment returns.

Table 1. Operational ROI

Table 2. Strategic ROI

Table 3. Human Capital ROI

As can be seen from the above, digitalization ROI is not a simple number; it is a complex metric that manifests across multiple dimensions. Success in digitalization begins when we stop searching for a “cool” tool or solution simply because it is popular or technically impressive. The true key to success lies in a measurement and analysis approach the ability to turn abstract feelings into concrete data and measurable benefits.

Artificial Intelligence (AI) is playing an increasingly important role in companies’ digitalization processes, opening new opportunities while demanding even more precise evaluation of the value generated by technology. For this reason, it is advisable to collaborate with trusted and experienced partners before implementing any digital solutions, partners who not only sell technology but also help objectively assess your needs and the expected ROI.

For example, PowerFlow Trade, through digital transformation and the implementation of an automated platform with AI elements, managed to reduce manual labor by employees by 40%, accelerate transaction processing, and significantly reduce the risk of errors. These improvements not only enhanced operational efficiency but also strengthened the company’s competitiveness in the market. Importantly, the entire impact of this process was quantitatively measurable and could be translated into clear return on investment.

Today, by sharing this article, we aim to help understand how to turn digital investments into concrete, measurable benefits. Zen IS always helps its clients not only to assess opportunities but also to model ROI before implementing any system, thus ensuring that the investment truly pays off and delivers sustainable value.

References:

1. Source of statistical data: https://www.mckinsey.com/~/media/mckinsey/business%20functions/mckinsey%20digital/our%20insights/the%20top%20trends%20in%20tech%202024/mckinsey-technology-trends-outlook-2024.pdf

2. Source of statistical data:

   https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/a-new-operating-model-for-a-new-world

Article expert - Alex Schtelbe
With over 10 years of experience implementing innovative technologies in both the public and private sectors, Alex has worked with leading companies in the Baltics and beyond. He helps organizations modernize business processes, implement customized e-commerce solutions, and automate daily operations to accelerate growth and improve efficiency. Alex’s strong technical understanding combined with strategic vision enables him not only to lead technical projects but also to build long-term client relationships based on trust and tangible results.

Article expert - Uldis Karlovs-Karlovskis
An IT trainer with 20 years of experience in leading Latvian and international IT companies. Thanks to his engineering background, experience managing teams of up to 150 engineers, and specialized additional training in psychology, he deeply understands the latest technologies and engineer behavior. He supports business management representatives in decision-making and bridges communication between these groups. Currently, Uldis, together with the ZenIS team, is developing the AI adoption with Professional DevOps support program, which helps partner companies technically master artificial intelligence capabilities and improve IT efficiency, costs, and speed.

Article co-author - Viktorija Golubova, ZenIS marketing specialist.