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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