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Chapter 4

CCT225H5 Chapter Notes - Chapter 4: Inventory Turnover, Enterprise Resource Planning, Balanced Scorecard


Department
Communication, Culture and Technology
Course Code
CCT225H5
Professor
Gordon Lucas
Chapter
4

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Chapter 4 Measuring the Success of Strategic Initiatives
Measuring Information Technology’s Success
Key performance indicators (KPIs) measures that are tied to business drivers
Efficiency and Effectiveness
Efficiency IT metrics measure performance of the IT system itself
o Throughput, speed, availability
o The extent an organization is using its resources in an optimal way
Effectiveness IT metrics measure the impact IT has on business processes
and activities
o Customer satisfaction, conversion rates, sell-through increases
o How well an organization is achieving its goals and objectives
“Do things right” – efficiency; getting the most out of resources
“Do the right things” – effectiveness; setting the right goals, objectives,
accomplishing them
Benchmarking Baseline Metrics
Benchmarks baseline values the system seeks to attain
Benchmarking process of continuously measuring system results, comparing
those results to optimal system performance (benchmark values), and identifying
steps and procedures to improve system performance
The Interrelationships of Efficiency and Effectiveness IT Metrics
Efficiency IT metrics:
o Throughput amount of information that can travel through a system at
any point
o Transaction speed amount of time a system takes to perform a
transaction
o System availability number of hours a system is available for users
o Information accuracy the extent to which a system generates the
correct results when executing the same transaction numerous times
o Web traffic # of page views, # of unique visitors, average time spent
viewing a web page
o Response time time it takes to respond to user interactions such as a
mouse click
Effectiveness IT metrics:
o Usability how easy it is for people to perform transactions and/or find
information
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