Thursday 16 November 2017

CHAPTER 4

      CHAPTER 4 - Measuring the Success of Strategic Initiatives



Key Performance indicator
- measures that are tied to business drivers

Metrics 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 professionals

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-through increases

Benchmarking - Base lining Metrics

Benchmarks - baseline values 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

Efficiency IT metrics focus on technology and include :

  • throughput 
  • Transaction speed
  • System availibility
  • Information accuracy
  • Web traffic
  • Response time
Throughput
- The amount of information that can travel through a ystem at any point

Transaction speed
- The amount of time a system takes to perform a transaction

System availibility
- The number of hours a system is available for users

Information acuracy
- The extent to which a system generates the correct results when executing the same transaction numerous times

Web traffic
- Includes a host of benchmarks such as the number of page views, the number of unique visitors, and the average time spent viewing a Web page

Response time
- The time it takes to respond to user interaction such as a mouse click

Effectiveness IT metrics focus on an organization's goals, strategies, and objectives and include:
  • Usability
  • Customer satisfaction
  • Conversion rates
  • Financial
Usability
- The ease which people perform transactions and/or find information. A popular usability metric on the internet is degrees of freedom, which measures the number of cliicks required to find desired information.

Customer satisfaction 
- measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer.

Conversion rate
- 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 constant revenues equal ongoing costs).

Metrics for Strategic Initiatives
-Metrics for measuring and managing strategic initiatives include:

  • web site metrics
  • supply chain management (SCM) metrics
  • customer relationship management (CRM) metrics
  • business process re engineering (BPR) metrics
  • enterprise resource planning (ERP) metrics
Web site Metrics




















Supply Chain Management (SCM) Metrics


Customer Relationship Management (CRM) Metrics























Business Process Re engineering (BPR) and Enterprise Resource Planning (ERP) Metrics

Balanced scorecard  is a management system, in addition to a measurement system, that enables organizations to clarify their vision and strategy and translate them into action.























                                                               - Thank You-

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