Chapter 4 : Measuring the Success of Strategic Initiatives

  1. Measuring Information Technology's Success - key performance indicators (KPIs) are the measures that are tied to business drivers. Metrics are the detailed measures that feed those KPIs. Performance metrics fall into a nebulous area of business intelligence that is neither technology-nor business-centred, this area requires input from both IT and business professionals to find success
  • 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
     2. The Interrelationship of Efficiency and Effectiveness IT Metrics
  • Common types of efficiency IT metrics
  • Common types of effectiveness IT metrics
     
     3. Metrics for Strategic Initiatives
  • Website 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
    • 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