Define metrics and describe the relationship between efficiency IT metrics and effectiveness IT metrics
- Efficiency IT metrics from the table is the important to monitor, do not always guarantee effectiveness
- For effectiveness IT metrics, it is determined according to an organization’s goals, strategies and objectives
EFFICIENCY IT METRICS
Throughput
The amount of information that can travel trough 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 security
The extent to which a system generates the correct results when executing the same transaction numerous times
Web traffic
Includes a host of brenchmarks such as the number of pages views, the number of unique visitors and the average time spent viewing a web page
Response time
The time it takes to respond to user interactions such as a mouse click
EFFECTIVENESS IT METRICS
Usability
The ease with which people perform transactions and/or 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 branchmarks as satisfaction surveys, percentage of existing customers retained and increases in revenue dollars percustomer
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 comparisonof projected revenues and costs including development, maintenance fixed, and variable), and break-even analysis (the point at which constant revenues equal ongoing costs)
IT Effectiveness Matrix:
- Effectiveness is related to doing the right things.
- It is more to intangible which is not easy to see, touch, calculate, define, determine and realize.
- It also measure the impact IT has on business process and activities including customer satisfaction.
- How well the organization achieve its goals and objectives and ensuring they accomplished.
IT Efficiency Matrix:
- Efficiency is related to doing the things right.
- It is more to tangible which is easy to see,touch,calculate,define,determine and realize.
- It also measure the performance of the IT system itself including throughput, speed, availability and flexibility.
- How far the company can using their resources such as capital, assets, facilities or technology system to achieve it goals.
- For example, a company already have a formal web and now they want to create news letter that can be generate everyday for their customers.
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