- Key performance indicator - measures that are tied to business drivers.
- Metrics are detailed measures the feed KPIs.
- Performance metric 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 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.
Benchmarking - Baselining Metrics
- Benchmarking - a process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), identifying steps and procedures to improve system performance.
- E-government benchmarks :
The Interrelationships of Efficiency and Effectiveness IT Metrics
- Efficiency IT metrics focus on technology and include throughput, transaction speed, system availability, information accuracy, web traffic and response time.
- Effectiveness IT metrics focus on an organization's goals, strategies, objectives and include usability, customer satisfaction, conversion rates and financial.
- Interrelationships between efficiency and effectiveness :
Metrics For Strategic Initiatives
1. Web site metrics
- Web site metrics include abandoned registrations, abandoned shopping cards, click-through, conversion rate, cost per-thousand, page exposures, total hits and unique visitors.
2. SCM metrics
- SCM metrics include back order, customer order promised cycle time, customer order actual cycle time, inventory replenishment cycle time and inventory turnover.
3. CRM metrics
- CRM metrics include sales metrics, service metrics and marketing metrics.
4. BPR and ERP metrics
- The balanced scorecard enables organizations to measure and manage strategic initiatives.
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