MEASURING THE SUCCESS OF STRATEGIC INITIATIVES



   Assalamualaikum to the reader this is my fourth posts on the MGT 300.On this chapter I learn about Measuring the Success of Strategic Intiatives.

CHAPTER 4 : Measuring The Success Of Strategic Intiatives

There are four learning outcomes on this chapter :

- Compare effeciency IT metrics and effectiveness IT metrics.

- To 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 organization.

Measuring Information Technology's Success

- Key performance indicator is measures that are tied to business drivers.

- Metrics are detailed measures that feed KPIs

- Performance metrics fall into the nebulos 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 is measures the performance of the IT system itself including throughput,

  speed,and availability.

- Effectiveness IT metric is measures the impact IT has on business processes and activities

  including customer satisfaction,conversion rates,and sell-through increases.

Benchmarking-Baselining Metrics

- Benchmarks is baseline values the system seeks to attain.

- Benchmarking is process of continously measuring system results,comparing those results to

  optimal system performance(benchmark values),and identifying steps and procedures to

  improve system performance.

- E-government benchmarks.

      The Interrelationships Of Efficiency And Effectiveness IT Metrics

- Effectiveness IT metrics focus on an organization's goals,strategies,and objectives and include :

• Usability
• Customer satisfaction
• Conversion rates
• Financial

- Interrelationships between efficiency and effectiveness

 EFFICIENCY IT metrics focus on technology and include:

	Efficiency IT Metrics
Throughput	The amount of information that can travel through a system at any point.
Transaction speed	The amount of time a system takes to perform a transaction.
System availability	The number of hours at system is available for users.
Information accuracy	The extent to which a system generates the correct results when executing the same transaction numerous times.
Web traffic	Includes a host of benchmarks such as the number of page views, the number of unique visitors, and the average time spent viewing a web page.
Response time	The time it takes to respond to user interactions such as a mouse click.

EFFECTIVENESS IT metrics focus on an organization's goals, strategies, and objective and include:

	Effectiveness IT Metrics
Usability	The ease with which people perform transactions and/or find information. A popular usability metric on the Internet is degrees of freedom, which measures the number of clicks required to find desired information.
Customers satisfaction	Measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer.
Conversion rates	The number of customers an organization “touches” for the first time and persuades to purchase its products or services. This is a popular metric for evaluating the effectiveness of banner, pop-up, and pop-under ads on the Internet.
Financial	Such as return on investment (the earning power of an organization’s assets), cost-benefit analysis (the comparison of projected revenues and costs including development, maintenance, fixed and variable), and break-even analysis (the point at which content revenues equal ongoing costs).

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.

Web Site Metrics

- Web site metrics are :

• Abandoned registrations.
• Abandoned shopping cards.
• Click-through.
• Conversion rate.
• Cost-per thousand.
• Page exposures.
• Total hits.
• Unique visitors.

Supply Chain Management Metrics

• Back order.
• Customer order promised cycle time.
• Customer order actual cycle time.
• Inventory replenishment cycle time.
• Inventory turns(inventory turnover)

Customer Relationship Management Metrics

- Customer relationship management metrics measure user satisfaction and interaction and include :

• Sales metrics.
• Service metrics.
• Marketing metrics.

BPR and ERP Metrics

- The balanced scorecard enables organizations to measure and manage strategic initiatives.