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
Efficiency and Effectiveness
Efficiency IT metric – measures the performance of the IT system itself including throughput, speed, and availability
Effectiveness IT metric – measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases
Benchmarking – Baselining 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
Efficiency IT metrics
Throughput - the amount of information that can travel through a system at any point
Transaction speed - the amount of time a system takes to perform a transaction
System availability - the number of hours a system is available for users
Information accuracy - the extent to which a system generates the correct results when executing the same transaction numerous times
Web traffic - includes a host of benchmarks such as the number of page views, the number of unique visitors, and the average time spent viewing a Web page
Response time - the time it takes to respond to user interactions such as a mouse click
Effectiveness IT metrics
Usability - The ease with which people perform transactions and/or find information. A popular usability metric on the Internet is degrees of freedom, which measures the number of clicks required to find desired information.
Customer satisfaction - Measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer.
Conversion rates - The number of customers an organization “touches” for the first time and persuades to purchase its products or services. This is a popular metric for evaluating the effectiveness of banner, pop-up, and pop-under ads on the Internet.
Financial - Such as return on investment (the earning power of an organization’s assets), cost-benefit analysis (the comparison of projected revenues and costs including development, maintenance, fixed, and variable), and break-even analysis (the point at which constant revenues equal ongoing costs).
The Interrelationships of Efficiency and Effectiveness IT Metrics
Security is an issue for any organization offering products or services over the InternetIt is inefficient for an organization to implement Internet security, since it slows down processing
However, to be effective it must implement Internet security Secure Internet connections must offer encryption and Secure Sockets Layers (SSL denoted by the lock symbol in the lower right corner of a browser)
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
Efficiency and Effectiveness
Efficiency IT metric – measures the performance of the IT system itself including throughput, speed, and availability
Effectiveness IT metric – measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases
Benchmarking – Baselining 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
Efficiency IT metrics
Throughput - the amount of information that can travel through a system at any point
Transaction speed - the amount of time a system takes to perform a transaction
System availability - the number of hours a system is available for users
Information accuracy - the extent to which a system generates the correct results when executing the same transaction numerous times
Web traffic - includes a host of benchmarks such as the number of page views, the number of unique visitors, and the average time spent viewing a Web page
Response time - the time it takes to respond to user interactions such as a mouse click
Effectiveness IT metrics
Usability - The ease with which people perform transactions and/or find information. A popular usability metric on the Internet is degrees of freedom, which measures the number of clicks required to find desired information.
Customer satisfaction - Measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer.
Conversion rates - The number of customers an organization “touches” for the first time and persuades to purchase its products or services. This is a popular metric for evaluating the effectiveness of banner, pop-up, and pop-under ads on the Internet.
Financial - Such as return on investment (the earning power of an organization’s assets), cost-benefit analysis (the comparison of projected revenues and costs including development, maintenance, fixed, and variable), and break-even analysis (the point at which constant revenues equal ongoing costs).
The Interrelationships of Efficiency and Effectiveness IT Metrics
Security is an issue for any organization offering products or services over the InternetIt is inefficient for an organization to implement Internet security, since it slows down processing
However, to be effective it must implement Internet security Secure Internet connections must offer encryption and Secure Sockets Layers (SSL denoted by the lock symbol in the lower right corner of a browser)
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