Measuring The Success Of Strategic Intiatives

• 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 IT metric - measures the performance of the IT system 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 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.

• Efficiency IT metrics focus on technology and include :-

       - Throughput
       - Transaction speed
       - System availability
       - Information accuracy
       - Web traffic
       - Response time

• Effectiveness IT metrics focus on and organization goals, strategies and objectives and include :-

        - Usability
        - Customer satisfaction
        - Financial

• Metrics for measuring and managing strategic initiatives include :-

      - Web site metrics

      - Supply chain management (SCM) metrics

      - Customer relationship management (CRM) metrics

      - Business process reengineering (BPR) metrics

      - Enterprise resource planning (ERP) metrics

• SCM Metrics

       - Back order

       - Customer order promised cycle time

       - Inventory replenishment cycle time

       - Inventory turns (inventory turnover)

• CRM Metrics

      - Sales metrics

      - Service metrics

      - Marketing metrics

• BPR and ERP Metric - the balanced scorecard enables organizations to measure and manage strategic intiatives.