Monday 19 August 2013

Chapter 4 MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

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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