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 centered, but requires input from both IT and business
professionals.
Benchmarkin-Baselining
Metrics
Benchmarking- a process of continuously measuring
system results
-
Comparing
those results to optimal system performance(benchmark values)
-
Identifying
steps and procedures to improve system performance.
The Interrelationships
of Efficiency and Effectiveness IT Metrics
o
Throughput
o
Transaction
speed
o
System
availability
o
Information
accuracy
o
Web
traffic
o
Response
time
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 a 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- time it takes
to respond to user interactions such as a mouse click
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
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
ü Web site metrics
ü Supply chain management (SCM) metrics
ü Customer relationship management (CRM)
metrics
ü Business process reengineering (BPR)
metrics
ü Enterprise resource planning (ERP)
metrics
Ø
Abandoned
registrations
Ø
Abandoned
shopping cards
Ø
Click-through
Ø
Conversion
rate
Ø
Cost-per-thousand
Ø
Page
exposures
Ø
Total
hits
Ø
Unique
visitors
Supply Chain Management Metrics
ü
Back order- an unfilled customer order. A back
order is demand against an item whose current stock level is insufficient to
satisfy demand.
ü
Customer order promised cycle time- the anticipated or agreed upon cycle
time of a purchase order. It is a gap between the purchase order creation date
and the requested delivery date.
ü
Customer or actual cycle time- the average time it takes to
actually fill a customer’s d purchase order. This measure can be viewed on an
order or an order line level.
ü
Inventory replenishment cycle time- measure of the manufacturing cycle
time plus the time included to deploy the product to the appropriate distribution
centre.
ü
Inventory turns (inventory turnover)- the number of times that a company’s
inventory cycles or turns over per year. It is one of the most commonly used
supply chain metrics.
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.
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