Actual Experience plc (LON: ACT), the analytics-as-a-service company, has today published a white paper detailing the potential significant cost to businesses of poor Digital Quality, entitled “The Economic Consequences of an Unmeasured and Unmanaged Digital Business.”
Key findings of the research
· On average, 1.4- 8.4% of a company’s fully loaded wage costs are being wasted due to poor Digital Quality
· For an average FTSE100 company, this equates to £55m to £334m lost per year
Based on ten years of scientific research, Actual Experience’s analytics enable organisations to measure the entire complex digital ecosystem including elements managed by third parties. Its Digital Quality Score provides a reliable proxy for businesses if they were to ask their staff and customers to continuously rate their experiences of digital services. This enables organisations to proactively manage the user experience of their digital services.
Commenting on the research, Dave Page, CEO of Actual Experience, said,
“Having spent a decade analysing millions of datapoints across multiple digital supply chains, we have built up a concerning picture regarding the true financial cost of poor digital productivity. If businesses are relying on digital solutions to deliver their services, they need to understand the human experience – what it is really like to use these solutions day to day. Many businesses have spent millions on the most innovative technologies, but the reality is they are costing the business just as much in wasted time. Employee frustration with these solutions shouldn’t be ignored, it’s making it harder and harder to do their jobs.”
Analysis applying the Digital Quality Score
Actual Experience calculated an estimate of the effect a drop in the Digital Quality Score has on productive hours. The time lost is a direct, mathematically modelled consequence of poor performance in the digital ecosystem, its effect on the user’s experience and by extension, the digital business.
Analysing data from customer deployments showed that every time the Digital Quality Score dropped by 10 points, approximately an hour of employee productivity is lost. For example, a business operating 20 points below optimal loses two hours of productive time a day – a quarter of an average working day.
The detailed research, including calculations and the full effect that a drop in the Digital Quality Score has on the human experience, can be found in Actual Experience’s whitepaper, The Economic Consequences of an Unmeasured and Unmanaged Digital Business.