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Measuring the Success of Strategic Initiatives

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MEASURING 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

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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

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THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT

METRICS• Interrelationships between efficiency and

effectiveness

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METRICS FOR STRATEGIC INITIATIVES

• Metrics for measuring and managing strategic initiatives include:– Supply chain management (SCM) metrics– Customer relationship management (CRM)

metrics– Business process reengineering (BPR)

metrics– Enterprise resource planning (ERP) metrics

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METRICS FOR STRATEGIC INITIATIVES

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Supply Chain Management Metrics

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Customer Relationship Management Metrics

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BPR And ERP Metrics

• The balanced scorecard enables organizations to measure and manage strategic initiatives