CHAPTER 4: MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

CHAPTER 4: MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

Assalamualaikum you alls..!! This week I would like to give a few information about chapter 4 in IT which is Measuring The Success of Strategic Initiatives. First is measuring information technology’s success.

MEASURING INFORMATION TECHNOLOGY’S SUCCESS.

·         Key performance indicators (KPIs)- 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 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 increases.

          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 seeks 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

This picture below shows the E-government benchmarks.

  THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS

·              Efficiency IT metrics focus on technology and include:

ü  Throughput

ü  Transaction speed

ü  System availability

ü  Information accuracy

ü  Web traffic

ü  Response time

        The table below shows the common types efficiency IT metrics

      While, in this table it is shows the common types of 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)

         METRICS FOR STRATEGIC INITIATIVES

·                         Metrics for measuring and managing strategic initiatives include:

-Web site metrics

-Supply chain management (SCM) metrics

-Customer relationship management (CRM) metrics

-Business process reengineering (BPR) metrics

-Enterprise resource planning (ERP) metrics

      WEBSITE METRICS

     Figure below shows a few metrics managers should be familiar with to help measure website success            along with an organization’s strategic initiatives.

 SUPPLY CHAIN MANAGEMENT (SCM) METRICS

 Supply chain management metrics can help an organization understand how it’s operating over a given          time period.

      SCM cover areas including:

§  Procurement

§  Production

§  Distribution

§   Warehousing

§  Inventory

§  Transportation

§  Customer service

                                             Common supply chain management metrics

  CUSTOMER RELATIONSHIP MANAGEMENT (CRM) METRICS

   The table below shows the common CRM metrics tracked by organization

BUSINESS PROCESS REENGINEERING (BPR) AND ENTERPRISE RESOURCE PLANNING        (ERP) METRICS

Balanced scorecard- a management system, in addition to a measurement system, that enables                 organizations to clarify their vision and strategy and translate them into action.

THANK YOU..!! :)