Assigment 5 : Measuring The Success of Strategic Initiatives

IT professionals know how to install and maintain information systems. Business professionals know how to run a successful business. But how does a company decide if an information system helps make a business successful?

The answer? Lies in the metrics or measurements.

KEY PERFORMANCE INDICATOR (KPI)

- Measures that are tied to business drivers.

-Do a research at least 1 time in a year.

-Do a paper presentation in the confrens

EFFICIENT IT METRICS

- Measures a performance of IT system and can be defined as doing the things right.

-Focus on the extent company using its resources in optimal way.

-How far the company can use the resources to achieve the objectives of the company.

-The resources of organizations consist of Man,Money,Material and Machine.

EFFECTIVENESS IT METRICS

-Measures the impact IT has on business process and activities.

-It's including customer satisfaction and conversation rates.

-The company need to make sure to doing the right things or how well company achieving its goals.

-To maintain customers satisfaction and to make sure customer receive every information from the company itself. 

-The company can bought a domain or website to measures how far the domain can work for the company.

Benchmarking--Baseline Metrics

Benchmarking is 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.

 

 

Metrics for Strategic Initiatives

A few of the more common financial ratios include:

• Internal rate of return (IRR) -- the rate at which the net present value of an investment equals zero.
• Return on investment (ROI) -- indicates the earning power of a project and is measured by dividing the benefits of a project by the investment.
• Payback method--number of years to recoup the cost of an initiative based on projected annual net cash flow.
• Break-even analysis--determines the volume of business required to make a profit at the current prices charged for the products or services.

 

The following metrics will help managers measure and manage their strategic initiatives:

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