Chapter 4: Measuring The Success Of Strategic Initiative

Measuring Information Technology's Success

*Key performance indicator-measures that are tied to business driver

*Metrics are detailed measures that feeds 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

  proffesional

• Effectiveness IT metrics - measure the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases
• Efficiency IT metrics - measure the performance of the IT system itself including throughput, speed, and availability
• Benchmarking - a process continuously measuring systems results, comparing those results to optimal system performance, and identifying steps and procedures to improve systems performance

                      

Website metrics

Cost-per-thousand(CPM)

Sales dollars generated per dollar of advertising. This is commonly used to make the case for spending money to appear on a search engine.

Page exposure

Avarage number of page exposures to an individual visitor.

Total Hits

Number of visits to a Web site, many of which may be the same visitor.

Uniqe Visitors

Number of unoque to a site in a given time. This is commonly used by Nielsen/Net ratings to rank the most popular Web sites.

Supply Chain Management Metrics

Customer Relantionship Management Metrics (CRM)

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
• The balanced scorecard views the organizations from four perspectives :
• The learning and growth perspective
• The internal business process perspective
• The customer perspective
• The financial perspective