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Thursday 9 January 2014

Measuring the success of strategic initiative (Chapter 4)




IT has become an important part of organizations’ strategy, competitive advantage, and profitability.
Peter Ducker, a famous management guru, once stated that if you cannot measure it, you cannot manage it

 Define Merits a.k.a KPI (Key performance indicators)

Are the measure that are tied to business drivers. Metrics are the detailed measures that feeds those KPIs .
Efficiency and Effectiveness
Are two primary types of IT metrics. Effeciency IT metrics measure the performance of the IT system itself including throughput, speed, and availability. Effectiveness IT metrics measure the impact IT has on business processes and activities including customers satisfaction, conversion rates, and sell-through increases .


Benchmarking- Baseline Metrics

Of what is measured, how it is measured , and whether it is for the sake of efficiency or effectiveness, there must be benchmarks, or baseline values the system seek to attain. Benchmarking is a process of continuously measuring the system results, comparing those results to optimal system performance , and indentifying steps and produces to improve system performance.


The interrelationships of efficiency and effectiveness it metrics .



Customers relationship management (CRM) metrics

To track and monitor using reporting and real-time performance .

Business process reengineering (BPR) and enterprise resource planning (ERP) metrics



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