Key Performances Indicator
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Measures that are tied to
business drivers
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Metrics are detailed
measures that feed KPI's
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Performance metrics fall
into the nebulous area of business intelligence that requires input from IT and
business professionals.
Efficiency
IT metrics
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Measures the performance of
the IT system itself
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Focus on technology and
include throughput, transaction speed, system availability, information
accuracy, web traffic, reponse time.
Effectiveness
IT metrics
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Measures the impact IT has
on business processes and activities
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Focus on organization's
goals, strategies and objectives, and include usability, customer satisfaction,
conversion rates, financial.
* Regardless of what is measured, how it is measured and
whether it is for the sake of efficiency or effectiveness, there must be a
BENCHMARKS.
* It is inefficient to implement internet security since it
slows down processing, however it is effective to implement internet security.
Metrics
for Strategic Initiatives
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Web site metrics:
abandoned registrations, abandoned shopping cards, click-through, conversion
rate, cost-per-thousand, page exposure, total hits, unique visitors
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SCM metrics: back
order, customer order promised cycle time, customer order actual cycle time,
inventory replenishment cycle time, inventory turns
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CRM metrics:
measures user satisfaction and interaction, sales metrics, service metrics,
marketing metrics
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BPR and ERP metrics:
measures and manage strategic initiatives
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