When most executives think about digital transformation, their minds instantly jump to metrics like cost savings, productivity gains, or faster time-to-market.
But according to Joaquin Fagundo, a highly respected technology executive from Parkland, Florida with over 20 years of experience in cloud strategy, IT operations, and large-scale transformation at companies like Google, Capgemini, and Tyco, that’s only scratching the surface.
“The true return on investment often hides in places leaders don’t immediately measure,” says Fagundo. “These hidden gains can drive long-term competitive advantage — if you know how to see them.”
In this article, Joaquin Fagundo pulls back the curtain on three often-overlooked benefits of digital transformation: cultural agility, employee retention, and vendor leverage.
- Cultural Agility: A Competitive Weapon in Disguise Digital transformation isn’t just about replacing outdated systems — it changes how your organisation thinks, reacts, and innovates.
Joaquin Fagundo has witnessed first-hand how a successful transformation creates cultural agility — the ability for teams to quickly adapt to new technologies, processes, and market shifts.
“In a truly agile culture, people aren’t afraid of the next change initiative — they expect it, they embrace it, and they look for ways to make it work better,” he explains.
Why It Matters
Faster decision-making: Teams trained to pivot can seize market opportunities before competitors.
Higher innovation output: Employees experiment more when they’re comfortable with change.
Resilience during disruption: Whether it’s a supply chain hiccup or a new compliance requirement, agile cultures handle shocks with less downtime.
Pro Tip from Fagundo:
During transformation, don’t just train employees on tools — train them on mindsets. Encourage iterative thinking, cross-department collaboration, and “fail-fast” experimentation.
- Employee Retention: The Silent ROI Driver High turnover is one of the most expensive problems for any enterprise, and digital transformation can either worsen it… or dramatically improve it.
Fagundo points out that when companies approach transformation as a people-first initiative rather than a technology-first mandate, they often see retention rates rise.
“If employees see that you’re investing in better tools, smarter workflows, and skill-building opportunities, they’re more likely to stick around and grow with you,” he says.
Hidden Savings from Retention
Lower hiring costs: Recruiting and onboarding new staff can cost 1.5–2x the annual salary of the departing employee.
Preserved institutional knowledge: Experienced employees carry critical know-how that can’t be replaced overnight.
Better morale and productivity: Stable teams tend to outperform constantly changing ones.
Fagundo’s Retention Playbook During Transformation
Involve employees early – Give them a voice in new system selection or process design.
Upskill continuously – Offer workshops, certifications, and mentoring so they grow alongside the tech.
Celebrate small wins – Recognise the people making the transformation work day-to-day.
- Vendor Leverage: Turning Relationships into Strategic Assets A lesser-known ROI stream in digital transformation lies in vendor leverage — the ability to negotiate better terms, secure premium support, and access exclusive innovations by becoming a more strategic client.
Fagundo explains:
“Once you modernise your infrastructure and workflows, you’re often in a position to consolidate vendors, standardise platforms, and deepen key partnerships. That’s when your negotiation power really kicks in.”
Examples of Vendor Leverage ROI
Volume discounts by standardising on fewer platforms.
Early access to new features through strategic partnerships.
Priority support during outages or emergencies.
Joint innovation initiatives where vendors co-develop solutions with you.
Fagundo’s Tip:
Make your transformation roadmap visible to your key vendors. When they know you’re committed to modernisation, they’re more likely to invest in your success.
Measuring the “Unmeasurable”
The challenge with these hidden ROIs is that they’re not as easy to track as direct cost savings. Joaquin Fagundo recommends using leading indicators rather than waiting for lagging results.
Suggested Leading Indicators
Cultural Agility: Number of cross-functional projects initiated, speed of internal approvals, employee feedback on adaptability.
Employee Retention: Voluntary turnover rates, internal promotion rates, participation in training programs.
Vendor Leverage: Negotiated cost reductions, support response times, vendor-driven innovation projects.
By tracking these metrics early, leaders can capture proof of value long before the finance team runs the year-end reports.
The Bottom Line: Look Beyond the Obvious
Digital transformation will always deliver hard ROI in areas like reduced IT costs, faster delivery, and process efficiency. But the most enduring value, according to Joaquin Fagundo, comes from the cultural shifts, human capital stability, and strategic relationships that grow along the way.
“Technology is the vehicle,” Fagundo concludes, “but the hidden returns are almost always human. If you miss those, you’re leaving a big part of your ROI on the table.”
For executives ready to go beyond surface-level wins, the message is clear:
Start measuring what most leaders overlook — and watch your transformation pay off in ways you didn’t expect.
Top comments (0)