chapter 4


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


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.


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 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 





Syaireen Shafiq,

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