Which Metrics Should You Track?
Do you use metrics and KPIs to track the success and performance of your software development investment? Here are some ideas of what to measure.
The pandemic has created a need for businesses to innovate and fully commit to their individual digital transformation. Statistics collated by KPMG reveal that global spending on technology has increased by $15 billion per week in response to business product development. Of course, those organisations who are dedicated to their software development will want to measure the success of their efforts to determine the ROI of their strategies. However, success metrics can be challenging both to collect and to interpret, which is why it is recommended that you focus on the following areas.
Business Value Metrics
Before committing to your investment in software development, you will have identified a goal that you need to achieve for your business. If you didn’t, then now is the time to pinpoint and refine your goals so that you know exactly how you’ll measure the performance of your software. Once you have a concrete goal or goals in place, you should take steps to track the success of the program so that you can analyse how well it is contributing to your business. Depending on the bespoke features of your software, you might choose to track metrics such as user satisfaction, cost per transaction, or service requests. The key is to limit the volume of metrics that you’re tracking at once to perhaps three or four, so you don’t become overwhelmed with data. Similarly, instead of relying on manual tracking which can be prone to human error, set up automation as a key part of your API development
to make it simple to keep on top of your software KPIs.
Think of these as behind-the-scenes metrics relating to your software development and maintenance. These can be vital in assessing how well your IT team is performing, or if you outsource, then whether or not you’re happy with your provider. Such metrics might include deployment time, how long it takes to write up new code and how long it takes to restore the service if it fails. These are all valuable ways for you to understand the health of your software and the IT team that is charged with being responsible for it. Your IT team may also have other metrics which they track on your behalf and are willing to share with you, but be aware that they may be sharing the positive numbers rather than those which need improvement.
The culture of your organisation is a challenging metric to obtain, but ultimately if you have invested heavily in software development then you’ll want to notice some internal improvements in your workplace. These might include finding a way to measure employee satisfaction, retention rate and perhaps gaining feedback from your team members about how they enjoy the software and internal processes they work with.
Metrics are vital to the success of your software development, but remember that they should be adopted on an individual company basis. What one company measures may not be the right set of numbers
for your organisation. Take the time to determine exactly how you will know if your software is working for you, and put the automated metrics in place to regularly track its performance.