CHAPTER 4 - MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

Measuring Information Technology's Success

- Key performance indicator (KPI) measure that are tied to business drivers.

- Metrics are detailed measure that feed KPI.

Efficiency and Effectiveness

* Efficiency : Measure the performance of the IT systems. ( Doing things right) 

* Effectiveness : Measure the impact. ( Doing the right things) 

Benchmarking - Baselining Metrics 

- a process measuring, comparing, identifying to improve systems performance. 

Efficiency IT Metrics

- Throughput

- Transaction speed

- Systems availability 

- Information accuracy 

- Web traffic 

- Response time

Effectiveness  IT Metrics

- Usability

- Customer satisfaction 

- Conversion rates

- Financial

The interrelationships of efficiency and effectiveness IT metrics 

- security : an issue for any organization offering product and service over the internet.

- Implement internet security.

- Secure internet connections and sockets layer.

Metrics For Strategies Initiatives 

1. Web site metrics 

2. SCM metrics 

3. CRM metrics 

4. BPR metrics 

5. ERP metrics 

Web Site Metrics :

- Abandoned registrations 

- Abandoned shopping cards 

- Click through 

- Conversion per thousand 

- Page exposed 

- Total hits 

- Unique visitors 

Supply Chain Management Metrics 

- Back order

- Customer order actual cycle time 

- Customer order promised cycle time

- Inventory replenishment cycle time 

Customer Relationship Management Metrics

*Sales metrics 

*Service metrics 

*Marketing metrics

BPR and ERP metrics 

- The balanced scorecard enables organizations to measure and manage strategies initiatives