Understanding digital KPIs for transformation in the logging industry

Key Performance Indicators (KPIs) are good ways to measure how well an existing or new process or goal is working out. You can use them to gauge effectiveness, and determine whether or not further change or recalibration is required. KPIs add value and a sense of purpose to your proposition. And the odd thing is that, while many companies out there are jumping onto the Digital Transformation trend, a lot of them are not using KPIs to measure how the changes are turning out, if they are achieving expectations, etc. This post will help you understand KPIs, and how you can use them to measure success within your logging operation.


Understanding digital KPIs


Before commencing the implementation and measuring of KPIs, you must have full understanding of what they are, and more importantly, what you are intending to measure, and the overall perception you wish to acquire.


Just what exactly are digital KPIs?


One can define a KPI (digital or otherwise) as a sort of performance compass, a way to guide a defined goal to its optimal outcome. It’s not just about numbers, or profit, but about the whole concept of what the KPI is supposed to measure. A digital KPI (applied to logging) should especifically be targeted at the progress made in digitizing the working environment, at the effectiveness of the newly implemented digital operations. The metrics used should reflect the outcome of the intended purpose.


Examples of Traditional KPIs v Digital KPIs


The more ‘traditional’ logging industry would have had a particular set of KPIs which may or may not have crossover with digital ones.


Examples of these are:


  • Increased production (yield)
  • Yield per acre
  • Amount of fertilizer out per output
  • Waste percentage
  • Low inventory items,

and many more. After undergoing digital transformation, these KPIs may change somewhat. You may implement KPIs related to the amount of cash saved by a new, more efficient process, for example. Or the amount of new revenue brought in by a digital sales channel recently opened. Use these KPIs to drive digital engagement, which will in turn drive business and enhance overall revenue volumes.


Digital KPI categories


Broadly speaking, best practice when implementing digital KPIs calls for the introduction of two digital KPI categories. The first set should be designed to gauge and measure the progress made within the logging operation in digitizing its current production model. Items like customer service, supply chain, etc., would come into play here. The second set should be targeted at how effective the new digital revenue avenues are. Essentially, determine how much money are these new channels bringing in, and how fast. The more KPIs you design and include in these two categories, the more comprehensive your overall vision of the company’s present and future will be. But be careful, as introducing too many KPIs may dilute the overall value, and obscure the judgement call. It is best to have a few well targeted KPIs that too many scattered ones.




KPIs can be powerful measurement tools, if used correctly. Digital KPIs in particular, tailored to your needs and purposes, to your specific processes, can become the perfect support for the Digital Transformation process. KPIs will infuse your logging operation with a sense of purpose and direction, while showing leadership and ownership. KPIs put you in control of your organization. In essence, let the KPIs work for you, rather than the other way around.

The digital life of your forests starts here. We have prepared an eBook to show you how.

Read From traditional to revolutionary: roots of success with increased operational efficiency and learn how digital transformation can make all the difference:

From traditional to revolutionary: roots of success with increased operational efficiency