|
Measuring
Information Technology’s Success
Á
Key Performing
Indicator – Measures that
are tied to business drivers
Metric are detailed measures that feed KPIs Performance metrics fall into the nebulous area of business intelligent that is neither technology nor business centered, but requires input from both IT and business professional |
|
Efficiency IT
Matric – Measures
the performance of the IT systems itself including throughput, speed and
available
|
|
Effectiveness IT
Matric –
Measures
the Impact IT has on business process and activities including customer
satisfaction conversion rates, and sell-through increases
|
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
|
E-Government benchmarks
Efficiency
|
1.
United States
|
2.
Australia
|
3.
New Zealand
|
4.
Singapore
|
5.
Norway
|
6.
Canada
|
7.
United Kingdom
|
8.
Netherlands
|
9.
Denmark
|
10.
Germany
|
Effectiveness
|
1.
Canada
|
2.
Singapore
|
3.
New Zealand United States
|
4.
Denmark
|
5.
Australia
|
6.
Finland
|
7.
Hong Kong
|
8.
United Kingdom
|
9.
Germany
|
10.
Ireland
|
Efficiency IT Matric
|
|
Efficiency IT Metrics focus on technology
|
|
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
Eg : If are people
open the page in same time the page
will be loading
|
Response time
|
The time it takes to
respond to user interactions such as a mouse click
Eg : People click the page the
system will be count how many people open the page
|
Effectiveness IT Metrics
|
|
Effectiveness IT metrics focus on an organization’s goals, strategies,
and objectives
|
|
Usability
|
The ease with which
people perform transactions and find
information. A popular usability metric on the Internet is degrees of
freedom, which measures the number of clicks required to find desired
information.
|
Customer 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 constant revenues equal ongoing costs).
|
|
Metrics for Strategic Initiatives
Metrics for measuring and managing strategic initiatives
|
|
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
|
|
1.
Abandoned registrations
2.
Abandoned shopping cards
3.
Click-through
4.
Conversion rate
5.
Cost-per-thousand
6.
Page exposures
7.
Total hits
8.
Unique visitors
|
WEB SITE METRICS
|
||
Abandoned
registrations
|
Number of visitors
who start the process of completing a registration page and then abandon the
activity.
|
|
Abandoned shopping
cards
|
Number of visitors
who create a shopping cart and start shopping and then abandon the activity
before paying for the merchandise.
|
|
Click-through
|
Count of the number
of people who visit a site, click on an ad, and are taken to the site of the
advertiser.
|
|
Conversion rate
|
Percentage of
potential customers who visit a site and actually buy something.
|
|
Cost-per-thousand
|
ales dollars
generated per dollar of advertising. This is commonly used to make the case
for spending money to appear on a search engine.
|
|
Page exposures
|
Average number of
page exposures to an individual visitor.
|
|
Total hits
|
Number of visits to
a Web site, many of which may be by the same visitor.
|
|
Unique visitors
|
Number of unique
visitors to a site in a given time. This is commonly used by Nielsen/Net
ratings to rank the most popular Web sites.
|
|
|
SUPPLY
CHAIN MANAGEMENT METRICS
 |
  |
|
CUSTOMER
RELATIONSHIP MANAGEMENT
|
||
Sales
metrics
|
Service
metrics
|
Marketing
metrics
|
Sales Metrics
|
Service Metrics
|
Marketing Metrics
|
Þ Number of prospective customers
|
Þ Cases closed same day
|
Þ Number of marketing campaigns
|
Þ Number of new customers
|
Þ Number of cases handled by agent
|
Þ New customer retention rates
|
Þ Number of retained customers
|
Þ Number of service calls
|
Þ Number of responses by marketing
campaign
|
Þ Number of open leads
|
Þ Average number of service requests by
type
|
Þ Number of purchases by marketing
campaign
|
Þ Number of sales calls
|
Þ Average time to resolution
|
Þ Revenue generated by marketing campaign
|
Þ Number of sales call per lead
|
Þ Average number of service calls per day
|
Þ Cost per interaction by marketing
campaign
|
Þ Amount of new revenue
|
Þ Percentage compliance with
service-level agreement
|
Þ Number of new customers acquired by
marketing campaign
|
Þ Amount of recurring revenue
|
Þ Percentage of service renewals
|
Þ Customer retention rate
|
Þ Number of proposals given
|
Þ Customer satisfaction level
|
Þ Number of new leads by product
|
