MEASURING INFORMATION TECHNOLOGY'S SUCCESS

ASSALAMUALAIKUM,

Alright today I want to update my blog after two week my mid-term break. I'll will continue with a information about my chapter 4 which is Measuring Information Technology's Success.

INTRODUCTION

• IT has become an important part of organization's strategy, competitive advantage and profitability.
• There is management pressure to build systems faster, better and minimum cost.
• The first thing manager need to understand about IT success is that it is incredibly difficult to measure.
• So,manager would to designing metrics requires an expertise that neither IT nor business professionals usually possess.
• Metric are about neither technology nor  business technology

EFFICIENCY AND EFFECTIVENESS

This is two primary types of IT metrics.

Conclusion effectiveness focuses on how well an organization is achieving its goals and objective while efficiency focuses on the extent to which an organization is using resources in an optimal way.

BENCHMARKING-BASELINE METRICS

Benchmarking is a process of continuously measuring system results, comparing those result to optimal system performance and identifying steps and procedures to improve system performance.

THE INTERRELATIONSHIP OF EFFICIENCY AND EFFECTIVENESS IT METRICS

Common type of efficiency and effectiveness IT metrics

                             

This is important to monitor because they do not always guarantee effectiveness and it determined according to an organization's goals, strategies and objectives.

METRICS FOR STRATEGIC INITIATIVE

*Metrics are at the heart of a good, customer-focused management system and any program directed at continuous improvement.

*Most manager are familiar with financial metrics but unfamiliar with information system metrics.the following metrics help managers measure and manage their strategic initiative.

• Website Metrics.
• Supply Chain Management Metrics
• Customer Relationship Management Metrics.
• Business Process Reengineering Metrics.
• Enterprise Resource Planning Metrics.

WEBSITE METRICS.

*Most companies measure the traffic on a website as the primary determinant of the website's success.

*Heavy website traffic not necessarily indicate large sale and the organization with lots of website traffic have minimal sale.

*Use this type of metric to determine revenue generated,the number of new customer acquired and any reductions in customer service calls.

SUPPLY CHAIN MANAGEMENT METRICS

*Help organization understand how it's operating over a given time period.

*Can cover many areas including procurement, production, distribution, warehousing, inventory, transportation and customer service.

                         

CUSTOMER RELATIONSHIP MANAGEMENT METRICS

BUSINESS PROCESS REENGINEERING AND ENTERPRISE RESOURCES PLANNING METRICS

*Both are large, organizationwide initiative.

*To measure these types is extremely difficult and best method to used scorecard.

*The balanced scorecard is a management system to measurement system that enables organizations to clarify their vision and strategy and translate them into action.

*The balanced scorecard views the organization from four perspectives, and users should develop metrics, collect data, and analyze their business relative to each of these perspectives :

• The learning and growth perspective.
• The internal business process perspective.
• The customer perspective.
• The financial perspective.(Figure below)

                                                                                                                                                                                                                                        

---