MGT 300- INFORMATION TECHNOLOGY IN BUSINESS: CHAPTER 4 : MEASURING SUCCESS OF STRATEGIC INITIATIVES

CHAPTER 4 : MEASURING SUCCESS OF STRATEGIC INITIATIVES

QUESTION FROM THIS CHAPTER:

Compare efficiency IT metrics and effectiveness IT metric
List and describe five common types of efficiency IT metrics
List and describe four types of effectiveness IT metrics
Explain customer metrics and their importance to an organizations

MEASURING INFORMATION TECHNOLOGY'S SUCCESS:

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 either technology, nor business centered, but requires input from both IT and business professionals

EFFICIENCY AND EFFECTIVENESS:

Efficiency IT metrics - measures the performance of the IT system itself including throughput,speed, and availability
Effectiveness IT metrics - measures the impact IT has on business processes and activities including customers satisfaction, conversion rates, and sell-through increases

THE INTERRELATIONSHIPS OF EFFICIENCY IT METRICS:

List and describe five common types of efficiency IT metrics:

THE INTERRE;ATIONSHIPS OF EFEECTIVENESS IT METRICS:

List and describes four types of effectivenss IT metrics:

Compare efficiency IT metrics and effectiveness IT metrics:

- Efficiency implies doing things right and effectiveness implies doing the right things

- Efficiency IT metrics focus on technology and include throughput, which is the amount of information that can travel through a system at any point in time. Efficiency metrics include speed, availability, accuracy, web traffic and response time.

- Effectiveness IT metrics focus on organization's goals, strategies and objectives and include usability, customer satisfaction, conversion rates, and financial metrics. Ideally, an organizations wants to operate with significant increase in both efficiency and effectiveness.

The Interrelationships of Efficiency and Effectiveness IT Metrics :

Security is an issue for any organization offering products or services over the Internet.It is inefficient for an organization to implement Internet security, since it slows down processing
However, to be effective it must implement Internet security
Secure Internet connections must offer encryption and Secure Sockets Layers (SSL denoted by the lock symbol in the lower right corner of a browser)

Benchmarking - A process continuously measuring systems results, comparing those results to optimal system performance, and identifying steps and procedures to improve systems performance.

Metrics For Strategic Initiatives :

A metric is nothing more than a standard measure to assess performance in particular area. A focus on customer and performance standard shows up in the form of metrics that assess the ability to meet customer’s needs and business objectives.

Website Metrics

- A company can use web traffic analysis to determine the revenue generated, the number of new customers acquired, any reductions in customer service call and so on. A few metrics manager should be familiar with to help measure website access along with organization’s strategic initiatives are :