mis ch4 itmetrics
DESCRIPTION
MIS Ch4 ITMetricsTRANSCRIPT
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MANAGEMENT
INFORMATION SYSTEMS
Chapter 4: Measuring the Success of Strategic Initiatives + BP4
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Learning Outcomes
Define metrics and describe the relationship between efficiency IT metrics and effectiveness IT metrics.
Explain why a business would use metrics to measure the success of strategic initiatives.
Explain the three components of an enterprise architecture.
List and describe the five qualities of an infrastructure architecture.
Compare Web services and open systems.
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Rankings
Henry Luce founded Time magazine in 1923 and Fortune magazine in 1929
The Fortune 500 = ranking of Americas top 500 companies, serves as the corporate benchmark
BusinessWeek magazine created a similar biannual ranking (now with Bloomberg)
Top business schools
Student experience (45%): how graduating students rated their education
Employer assessment (45%): how recruiters at companies that hire MBAs judge each schools graduates
Intellectual capital (10%): expertise of each schools faculty, determined by a tally of research articles in esteemed journals
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KPIs Class Activity
1-3: AUBG
4-6: KFC
7-9: Walmart
10-12: Toyota
13-15: City of Blagoevgrad
16-18: Zara
19-21: Lufthansa
22-24: Department of Public
Transportation, Sofia
25-27: JFK Airport (NYC)
28-30: AUBG Canteen
31-33: Sheraton Hotels
34-36: OK Taxi
Do not focus on legally required financial reporting metrics
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Measuring Efficiency and Effectiveness Class Activity
Create a plan to measure the efficiency and effectiveness
of this course and recommendations on how they would
improve the course to make it more efficient and more
effective
You will need to determine ways to benchmark current
efficiency and effectiveness and ways to continuously
monitor and measure against the benchmarks to
determine if the course is becoming more or less efficient
and effective
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Measuring Efficiency and Effectiveness Class Activity
Design of the classroom
Room temperature and lighting
Electronic capabilities of the classroom
Technology available in the classroom
Length of class
Email and instant messaging
Students attendance
Students preparation
Students arrival time
Quizzes and exams (frequency, length, grades)
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Measuring ITs Success
Questions banking executives raise regarding their IT systems:
Is the internal IT operation performing satisfactorily?
Should the company outsource some or all of the IT
operations?
How is the outsourcing company performing?
What are the risk factors to consider in an IT project?
What questions should be asked to ensure an IT project
proposal is realistic?
Which factors are most critical to measure to ensure the
project achieves success?
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How would you define success in relation to an IT system?
Is it more important to have IT professionals or business
professional define success for an IT system?
What happens if only one group defines success?
Key Performance Indicators (KPIs)
Measures that are tied to business drivers
Metrics are detailed measures that feed KPIs
Performance metrics require input from both IT and
business professionals
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Efficiency IT Metrics
Measure performance of IT system itself
Focus on technology
Doing things right
Information accuracy
Web traffic
Response time
Throughput
Transaction speed
System availability
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How do you measure customer satisfaction?
Effectiveness IT Metrics
Measure impact IT has on business processes & activities
Focus on organizations goals, strategies, and objectives
Doing the right things
Conversion rates
Financial
Usability
Customer satisfaction
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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)
Identifying steps and procedures to improve system
performance
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Efficiency and Effectiveness IT Metrics
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Benchmarking Baseline Metrics E-Government Benchmarks
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Benchmarking Baseline Metrics E-Government Benchmarks
E-government efficiency metrics
Number of computers per 100 citizens
Number of Internet hosts per 10,000 citizens
Percentage of the citizen population online
E-government effectiveness metrics
CRM practices
Customer-service vision
Approaches to offering e-government services through
multiple-service delivery channels
Initiatives for identifying services for individual citizen
segments
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Metrics for Strategic Initiatives
Metric = standard measure to assess performance in a
particular area
Metrics for measuring and managing strategic initiatives:
Website metrics
Supply chain management (SCM) metrics
Customer relationship management (CRM) metrics
Business process reengineering (BPR) metrics
Enterprise resource planning (ERP) metrics
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Website Metrics
Abandoned registrations
Abandoned shopping carts
Click-through
Conversion rate
Cost-per-thousand
Page exposures
Total hits
Unique visitors
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Supply Chain Metrics
Back order
Customer order
promised cycle time
Customer order actual
cycle time
Inventory replenishment
cycle time
Inventory turns
(inventory turnover)
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CRM Metrics
Sales metrics
# of prospective customers
# of new customers
# of retained customers
# of open leads
# of sales calls
# of sales call per lead
Amount of new revenue
Amount of recurring revenue
# of proposals given
Service metrics
Cases closed same day
# of cases handled by agent
# of service calls
Average # of service requests by type
Average time to resolution
Average # of service calls per day
% compliance with service-level agreement
% of service renewals
Customer satisfaction level
Marketing metrics
# of marketing campaigns
New customer retention rates
# of responses by marketing campaign
# of purchases by marketing campaign
Revenue generated by marketing campaign
Cost per interaction by marketing campaign
# of new customers acquired by marketing campaign
Customer retention rate
# of new leads by product
Measure user satisfaction and interaction
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BPR and ERP Metrics
Balanced scorecard = enables organizations to measure
and manage strategic initiatives
Balanced scorecard views organization from 4 perspectives:
Learning and growth
Internal business process
Customer
Financial
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Balanced Scorecard
9 Steps to Success TM Step 1: Assessment Internal and External Strategic Assessment
Step 2: Strategy Customer Value, Strategic Themes & Results
Step 3: Objectives Strategy Action Components
Step 4: Strategy Map Cause-Effect Links
Step 5: Performance Measures Measures & Targets
Step 6: Initiatives Strategic Projects
Step 7: Performance Analysis Software, Performance Reporting & Analysis
Step 8: Alignment Cascading to Unit and Individual Scorecards
Step 9: Evaluation Strategy Results and Revised Strategies
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Balance Scorecard Video: QuickScore Performance Information System
http://vimeo.com/71104616http://vimeo.com/71104616http://vimeo.com/71104616http://vimeo.com/71104616http://vimeo.com/71104616http://vimeo.com/71104616 -
Oracle
Business Intelligence Enterprise Edition
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Oracle
Business Intelligence Enterprise Edition
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Oracle
Business Intelligence Enterprise Edition
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Oracle
Business Intelligence Enterprise Edition
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Oracle
Business Intelligence Enterprise Edition
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Enterprise Architecture
Enterprise architecture = plans for how organization will
build, deploy, use, and share its data, processes, and IT
assets
Enterprise architect = person grounded in technology,
fluent in business, provides the important bridge
between IT and business
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Enterprise Architecture