Wednesday 22 July 2015

Chapter 4

Chapter 4 – Measuring the Success of Strategic Initiatives

MEASURING INFORMATION TECHNOLOGY’S SUCCESS
  • -          Key performance indicator – measures that are tied to business drivers
  • -          Metrics are detailed measures that feed KPIs
  • -          Performance metrics fall into the nebulous area of business intelligence that is neither technology, nor business centered, but requires input from both IT and business professionals


EFFICIENCY AND EFFECTIVENESS
  • -          Efficiency IT metric – measures the performance of the IT system itself including throughput, speed, and availability
  • -          Effectiveness IT metric – measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases


BENCHMARKING – BASELINE METRICS
  • -          Regardless of what is measured, how it is measured, and whether it is for the sake of efficiency or effectiveness, there must be benchmarks – baseline values the system seeks to attain
  • -          Benchmarking – a process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and producers to improve system performance.

EFFICIENCY IT METRIC
  • measure the performance of the IT system itself including throughout,speed and availability.
  • lots of useful information
EFFECTIVENESS IT METRIC
  • measure the impact it has on business processes and activities including customer satisfaction, conversation rates, and sell-through increases.
  • the extent to which our services are prefer by many consumers.
METRICS FOR STRATEGIC INITIATIVES

-          Metrics for measuring and managing strategic initiatives include;
·         Website metrics.
·         Supply chain management (SCM) metrics
·         Customer relationship management (CRM) metrics
·         Business process reengineering (BPR) metrics
·         Enterprise resource planning (ERP) metrics 



WEBSITE METRICS

SUPPLY CHAIN MANAGEMENT METRICS 

CUSTOMER RELATIONSHIP MANAGEMENT METRICS
BPR and ERP Metrics

-          The balanced scorecard enables organizations to measure and manage strategic initiatives. 


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