CHAPTER 4 : MEASURING THE SUCCESS OF STRATEGIC INITIATIVES


1.     Efficiency and effectiveness
·         Efficiency IT metrics
-          Measures the performance of the IT system
-          Focus on technology and include :-
§  Throughput
§  Transaction speed
§  Systems availability
§  Information accuracy
§  Web traffic
§  Response time
·         Effectiveness IT metrics
-          Measures the impact IT has on business processes and activities
-          Focus on an organization’s goals, strategies, and objectives and include :-
§  Usability
§  Customer satisfaction
§  Conversion rates
§  Financial


2.     Benchmarking (base lining metrics)
·         A process of continuously  measuring systems results, comparing those results to optimal system performance and identifying steps and procedures to improve systems performance

3.     Metrics for strategic initiatives
·         Website metrics
-          Abandoned registration
-          Abandoned shopping carts
-          Click-through
-          Conversion rate
-          Cost-per-thousand
-          Page exposures
-          Total hits
-          Unique visitors
·         Supply chain management (SCM) metrics
-          Back order
-          Customer order promise cycle time
-          Customer order actual time
-          Inventory replenishment cycle time
-          Inventory turns (inventory turnover)
·         Customer relationship management (CRM) metrics
-          Measure user satisfaction and interaction and include :-
§  Sales metrics
§  Service metrics
§  marketing metrics
·         Business process reengineering (BPR) metrics and Enterprise resources planning (ERP) metrics
-          The balanced scorecard enables organizations to measure and manage strategic initiatives

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