Sunday 12 January 2014

Chap 4: Measuring the Success of Strategic Initiatives

Key Performances Indicator
-          Measures that are tied to business drivers
-          Metrics are detailed measures that feed KPI's
-          Performance metrics fall into the nebulous area of business intelligence that requires input from IT and business professionals.

Efficiency IT metrics
-          Measures the performance of the IT system itself
-          Focus on technology and include throughput, transaction speed, system availability, information accuracy, web traffic, reponse time.

Effectiveness IT metrics
-          Measures the impact IT has on business processes and activities
-          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
-          Web site metrics: abandoned registrations, abandoned shopping cards, click-through, conversion rate, cost-per-thousand, page exposure, total hits, unique visitors

-          SCM metrics: back order, customer order promised cycle time, customer order actual cycle time, inventory replenishment cycle time, inventory turns

-          CRM metrics: measures user satisfaction and interaction, sales metrics, service metrics, marketing metrics


-          BPR and ERP metrics: measures and manage strategic initiatives

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