CHAPTER 4 - MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

Learning outcomes :

4.1 Compare efficiency IT metric and effectiveness IT metric

4.2 List and describe five common types of efficiency IT metric

4.3 List and describe four types of effectiveness IT metric

4.4 Explain customer metrics and their importance to an organization

MEASURING INFORMATION TECHNOLOGY'S SUCCESS

• Measure that are tied to business drivers
• Metric 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
• 5M   - man. -material, -money, -meachine

EFFICIENCY IT METRICS  (Doing thing right )

- Measures the performance of the IT system itself including throughput, speed, and availability.

EFFECTIVENESS IT METRICS ( Doing the right things )

- Measure the impact IT has on business processes and activities including customers satisfaction, conversion rates and sell through increases .

BENCHMARKING - BASELINE METRICS

BENCHMARK  - Baseline value 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 procedures to improve system performance.

THE INTERRELATIONSHIP OF EFFICIENCY AND EFFECTIVENESS IT METRICS

• Security is an issues for any organizations offering product or service over the internet

Interrelationship between efficiency and effectiveness

METRICS FOR STRATEGIC INITIATIVE

Metrics for measuring and managing strategies initiative include :

• Web sites metrics
• Supply chain management (SCM) metric
• Customers relationship management ( CRM ) metric
• Business process reengineering ( BPR ) metric
• Enterprise resources planni g ( ERP )

WEB SITE METRICS

SUPPLY CHAIN MANAGEMENT METRICS

CUSTOMERS RELATIONSHIP MANAGEMENT METRICS

- Customer relationship management metrics measures user satisfaction and interaction and include

• Sales metrics
• Service metrics
• Marketing metric

BPR AND ERP METRICS

The balanced scorecard enables organizations to measure and manage straregic initiatives.

 :) hope you all can understand for this chapter :)