The ROI Paradox: Why Digital Transformation Success Eludes Most Companies

According to ZDNet, digital transformation leaders from major organizations including Sergo, Lloyds Banking Group, Save the Children UK, and Assured Partners International revealed critical insights at the recent DTX Conference in London about measuring technology ROI. Richard Corbridge, CIO at property specialist Sergo, emphasized that vague productivity claims like “staff will have an extra 30 minutes in their day” fail to convince executives without quantifiable business value. Amit Thawani from Lloyds Banking Group outlined three guiding principles for transformation success: pace, productivity, and predictability, while emphasizing the need for consistent KPI measurement across silos. Shruti Sharma of Save the Children UK highlighted creating “tribe mentality” to drive strategic outcomes, and Charlotte Bemand from Hottinger Brüel & Kjær stressed the importance of behavioral indicators alongside traditional metrics. These insights reveal a fundamental challenge in modern digital transformation initiatives.

The Fundamental Disconnect in Technology Value Assessment

The core issue facing today’s CIOs isn’t just implementing new technology—it’s proving its worth in business terms that resonate across the organization. What makes this particularly challenging is that many digital transformation benefits are cumulative and interconnected rather than isolated to specific projects. When companies deploy multiple technologies simultaneously, the combined effect creates organizational efficiency, but individual tools rarely show immediate bottom-line impact that executives can easily recognize. This creates a paradox where organizations know they’re becoming more efficient but struggle to point to specific ROI from any single initiative.

Why Traditional KPIs Fail and Behavioral Indicators Matter

The emphasis on behavioral measurement represents a significant evolution in how we assess technology success. Traditional performance indicators often miss the human element of digital transformation—the cultural adoption that ultimately determines whether technology investments pay off. When stakeholders consistently show up to meetings prepared and energized, or when cross-functional teams naturally collaborate around shared data sets, these behavioral signals often precede quantifiable financial results. The inverse is equally telling: when team members avoid meetings or communications, it signals deeper adoption problems that no amount of technical success can overcome.

The Special Case of AI and Emerging Technology ROI

Artificial intelligence initiatives present particularly difficult measurement challenges. As organizations rush to implement generative AI tools like Microsoft Copilot, they’re discovering that the traditional ROI frameworks developed for enterprise software don’t adequately capture AI’s potential value. AI benefits often manifest as enhanced decision-making capabilities, accelerated innovation cycles, or improved customer experiences—outcomes that resist simple quantification. The most successful organizations are developing new measurement frameworks that combine quantitative metrics with qualitative assessments of how AI changes work patterns and organizational capabilities.

Breaking Down Silos Through Shared Language and Purpose

The consistent theme across these expert insights is the critical importance of organizational alignment. When different business functions operate with their own terminology, priorities, and success metrics, even the most technically successful IT projects struggle to demonstrate value. The solution isn’t just better communication—it’s developing a shared understanding of what success looks like across the organization. This requires translating technical capabilities into business outcomes that resonate with diverse stakeholders, from fundraising teams in nonprofits to revenue-focused executives in commercial organizations.

What This Means for Future Technology Investments

The inability to clearly demonstrate ROI creates significant risks for ongoing digital transformation initiatives. Without compelling value stories, organizations may prematurely abandon promising technologies or underinvest in the change management required for successful adoption. The most forward-thinking companies are addressing this by building measurement into their transformation strategies from the outset—establishing clear baselines, defining success in both quantitative and behavioral terms, and creating feedback mechanisms that capture the full spectrum of technology impact. As digital transformation continues to evolve from discrete projects to continuous organizational capability, our approaches to measuring success must evolve accordingly.