Chapter 4 Measuring The Success Of Strategic Initiatives

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