Measuring Information Technology Success
Metrics > Neither technology nor business strategy> The details measures that feed those KPIs
Key performance indicators (KPIs) > The measure that are tied to business drivers.
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 increas.
Benchmarking- Baseline Metrics
Regardless of what is measured, how it is measured, and whether it is for the sake of efficiency or effectiveness , there must be Benchmarks -baseline values the system seek 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.
The Interrelationships of Efficiency and Effectiveness It Metrics
Efficiency IT metrics focus on technology and include :
- Throughput
- Transaction speed
- System availability
- Information accuracy
- Web traffic
- Response time
Effectiveness IT metrics focus on an organization's goals, strategies , and objectives and include :
- Usability
- Customer satisfaction
- Conversion rate
- Financial
Be sure to consider the issue of security while determining efficiency and effectiveness it metrics.
Metrics for Strategic initiatives
Metric are the hearts of a good,customer focused management system and any program directed at continuous improvement.
A focus on customers and performance standard show up in the form of metric that assess the ability to meet customers needs and business objectives.
A few of the more common financial ratios include:
- Internal rate of return (IRR)
- Return on investment (ROI)
- Payback method
- Break even analysis
Metric will help manager measure and manage their strategic initiatives :
- 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
Web site metrics include :
- Abandoned registrations
- Click-through
- Conversion rate
- Cost-per-thousand
- Page exposures
- Total hits
- Unique visitors
Supply chain management (SCM) metrics :
- Back order
- Customer order promised cycle time
- Customer order actual cycle time
- Inventory replenishment cycle time
- Inventory turns (inventory turnover)
Customer relationship management metrics
Customer relationship management metrics measure user satisfaction and interaction and include :- Sales metrics
- Service metrics
- Marketing metrics
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