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Lecture Business driven technology: Chapter 4 - Paige Baltzan, Amy Phillips

Chapter 4 - Measuring the success of strategic initiatives. The learning objectives for this chapter include: Compare efficiency IT metrics and effectiveness IT metrics, list and describe five common types of efficiency IT metrics, list and describe four types of effectiveness IT metrics, explain customer metrics and their importance to an organization. | CHAPTER 4 Measuring the Success of Strategic Initiatives LEARNING OUTCOMES 4.1 Compare efficiency IT metrics and effectiveness IT metrics 4.2 List and describe five common types of efficiency IT metrics LEARNING OUTCOMES 4.3 List and describe four types of effectiveness IT metrics 4.4 Explain customer metrics and their importance to an organization 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 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, . | CHAPTER 4 Measuring the Success of Strategic Initiatives LEARNING OUTCOMES 4.1 Compare efficiency IT metrics and effectiveness IT metrics 4.2 List and describe five common types of efficiency IT metrics LEARNING OUTCOMES 4.3 List and describe four types of effectiveness IT metrics 4.4 Explain customer metrics and their importance to an organization 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 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 – BASELINE METRICS Regardless of what is measured, how it is measured, and whether it is for the sake of efficiency or effectiveness, there must be 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 BENCHMARKING – BASELINE METRICS Comparing efficiency IT and effectiveness IT metrics for egovernment initiatives THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS Common types of efficiency IT metrics THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS Effectiveness IT metrics focus on an organization’s goals, strategies, and objectives and include THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS Security is an issue for any organization offering products or services over the