Anisah Daud: CHAPTER 4 : MEASURING THE SUCESS OF STRATEGIC INITIATIVES

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 neither technology, nor business centred, but requires input from both IT and business professionals.

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 benchmark.

WHAT IS BENCHMARK?

-baseline value the system seeks to attain.

BENCHMARKING?

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

*INFORMATION: The country that get 1st place in EFFICIENCY is United States and for EFFECTIVENESS is Canada.

THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS

* Effectiveness IT metrics are determined according to an organization's goals, strategies, and objectives.

* It is important to consider the strategy an organization is using such as a broad cost leader strategy as well as specific goals and objectives such as increasing new customers by 10% or reducing new product new- product development cycle times six months.

- Common types of efficiency IT metrics.

1. Throughput -the amount of information that can be saved through a system or any point.

2.Transaction - the amount of the system takes to perform a transaction.

3.System availability - the number of hours a system as available for customer.

4.Information accuracy - the extent to which a system generates the correct results.

-On effectiveness, we also see the USABILITY, CUSTOMER SATISFACTION, CONVERSION RATES AND FINANCIAL