chapter 4 : MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

MEASURING INFORMATION TECHNOLOGY'S SUCCESS

- Key performance indicator : measures that are tied to business drivers
- Metrics are detailed measures that feed KPIs
- Performance metrics fall into the nebulous area of business intelligence that is neither technology,  
   nor business centered, but requires input from both IT and business professionals.

Efficiency and Effectiveness

• Efficiency IT metric : measures the performance of the IT sysytem itself including throughput, speed and availability
• Effectiveness IT metric : measures the impact IT has on business processes and activities including customer satisfaction, conversion rates and sell-through increase   

Bechmarking-baselining metrics

The interrelationships of efficiency and effectiveness IT metrics

METRICS FOR STRATEGIC INITIATIVES

Metrics for measuring and managing strategic initiatives include:

•             Website metrics
•             Supply chain management (SCM) metrics
•             Customer relationship management (CRM) metrics
•             Business process reengineering (BPR) metrics
•             Enterprise resource planning (ERP) metrics

The balanced scorecard enables organizations to measure and manage strategic initiatives