Calculating the ROI of Digitalization Activities

Digital transformation at scale requires a great amount of effort and investment. Due to that, it is essential to be able to estimate the expected return of the single activities within your transformation program. Some activities will not have a direct return and will unfold their effect only indirectly. Other projects might have a direct effect for example on the overall performance of a production line but require some basic work in advance. Based on a large number of developed transformation roadmaps for manufacturing companies we observed that the implemented digitalization measures show their effect in a variety of different KPIs. In our framework we related a set of typical Industrie 4.0 measures to their effects in the company and made those effects quantifiable.