Measuring the success of strategy initiative
key performance indicator
> measure that are tied to business drivers
> metrics are detailed measures that feed KPIs
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 though increases
Benchmarking baselining metrics
benchmark baseline values the system seek to attain
benchmarking a process of continuously measuring system results, comparing those results to optimal system performance and identifying steps and procedures to improve system performance
the interelationships of efficiency and effectiveness IT metrics
efficiency IT metrics focus on technology and include :
> throughput
amount of information that can travel through a system at any point
> transaction speed
amount of time a system takes to perform a transaction
> system availability
number of hours a system is available for users
> information accuracy
extent to which a system generates the correct result when executing the same transaction numerous times
> web traffic
a host of benchmarks such as the number of pages views, the number of unique visitors, and the average
time spent viewing a web page
> response time
times to respond to user interaction such as a mouse click
Effectiveness IT Metrics
-Usability
The ease with which people perform transactions and/or find information. A popular usability metric on the Internet is degrees of freedom, which measures the number of clicks required to find desired information
-Customers satisfaction
Measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer.
-Conversion rates
The number of customers an organization “touches” for the first time and persuades to purchase its products or services. This is a popular metric for evaluating the effectiveness of banner, pop-up, and pop-under ads on the Internet.
-Financial
Such as return on investment (the earning power of an organization’s assets), cost-benefit analysis (the comparison of projected revenues and costs including development, maintenance, fixed and variable), and break-even analysis (the point at which content revenues equal ongoing costs).
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
CUSTOMER RELATIONSHIP MANAGEMENT METRICS
BPR AND ERP METRICS
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