CHAPTER 4 : MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

Key Performance Indicator : measures that are tied to business drivers.

- Metrics are detailed measures that feed KPI's.

- 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 - BASELINING METRICS

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.

THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS

METRIC FOR STRATEGIC INITIATIVES

-          Metrics for measuring and managing strategic initiatives include;

·         Website metrics.

·         Supply chain management (SCM) metrics

·         Customer relationship management (CRM) metrics

·         Business process reengineering (BPR) metrics

·         Enterprise resource planning (ERP) metrics 

WEBSITE METRICS

SUPPLY CHAIN MANAGEMENT METRICS 

CUSTOMER RELATIONSHIP MANAGEMENT METRICS

BPR and ERP Metrics

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