CHAPTER 4

AsSaLaMuAlAiKuM

MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

Introduction 

•  IT professionals know how to install and maintain information systems

•   Business professionals know how to run a successful business

Measuring IT's Success

•   Key Performance Indicators (KPI)

How an organization defines and measures progress toward its goals

Key Performance Indicators, also known as KPI or Key Success Indicators (KSI), help an organization define and measure progress toward organizational goals. 

Once an organization has analyzed its mission, identified all its stakeholders, and defined its goals, it needs a way to measure progress toward those goals. Key Performance Indicators are those measurements.

EFFICIENCY & EFFECTIVENESS IT METRICS

Efficiency:

 

There is 6 common types of Efficiency in IT metrics

1. Throughput : amount of info that can travel in system at any point
2. Speed : the times takes for a system to perform a transaction
3. Availability : available number of hours in a system to be use by customer and employee
4. Accuracy : the extents to which a system generates the correct results when executing the same transaction numerous time
5. Web traffic : number of page views, number of unique visitors and average spend on viewing the web page
6. Response time : time takes to respond to user interactions such as mouse click 

Effectiveness:

• Usability = the ease which people perform transaction/ find info. E.g: unlimited use of internet
• Customer satisfaction = benchmarks such as surveys, percentages of existing customers retained & etc
• Conversion rates = number of customers an organizations touches for the first time and convince to purchase its product or services
• Financial = the cost benefit analysis, breakeven analysis

Business in Facebook. How efficiency and effectiveness? 

Efficiency:

• Easy for the dealer to discuss or dealing with the buyers
• It is easy, low cost, and did not take to much times to promote about new product
• Very fast and very simple
• Can post advertisements just in second so everyone can see it less than minutes
• Easy for dealer to hear the request from buyers

Effectiveness :

• More customers 
• Dealer can spread his business not only in this country but the world wide
• The dealer can expand his business and achieve his goals and objectives