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M03L07 Slide: 1
 Types of
change an
organization
can achieve,
along with the
magnitudes of
change and
the potential
business
benefit
M03L07 Slide: 2
 Strategic planning
is the process of
modifying a
business to
achieve above
average profit
Finance
Operations
R&D
MarketingSales
Service
HR
Strategic
Initiative
s
M03L07 Slide: 3
 A single strategic
initiative affects
as few as one and
as many as all
functional areas
within and
organization
Finance
Operations
R&D
MarketingSales
Service
HR
Strategic
Initiative
s
M03L07 Slide: 4
 Superior
businesses will
address multiple
strategic
initiatives at any
given time each
of which must be
evaluated for
effectiveness
Strategic
Initiative
s
Strategic
Initiative
s
Strategic
Initiative
s
Strategic
Initiative
s
M03L07 Slide: 5
 To assess the effects
of all strategic
planning efforts in
the business, an
overall business
baseline must be
created
Strategic
Initiative
s
M03L07 Slide: 6
 To assess the
effects of all
strategic planning
efforts individual
functional areas
may also need one
or more baselines
Finance
Operations
R&D
MarketingSales
Service
HR
Strategic
Initiative
s
M03L07 Slide: 7
 Base lining
may need to
occur within
various
segments of
one or more
strategic
initiatives
Strategic
Initiative
s
Strategic
Initiative
s
Strategic
Initiative
s
Strategic
Initiative
s
Strategic
Initiative
s
Strategic
Initiative
s
Strategic
Initiative
s
M03L07 Slide: 8
 To assess the
effects of all
strategic
planning
efforts in the
business, an
overall
business
baseline must
be created
Finance
Operations
R&D
MarketingSales
Service
HR
Strategic
Initiative
s
Efficiency ----- Effectiveness
M03L07 Slide: 9
 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
M03L07 Slide: 10
 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
M03L07 Slide: 11
 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
M03L07 Slide: 12
 Comparing efficiency
IT and effectiveness
IT metrics for
e-government
initiatives
M03L07 Slide: 13
 Common types of efficiency IT
metrics
M03L07 Slide: 14
 Effectiveness IT metrics focus on an
organization’s goals, strategies, and
objectives and include…
M03L07 Slide: 15
 Metrics for measuring and managing
strategic initiatives include:
◦ Website metrics
◦ Supply chain management (SCM) metrics
◦ Customer relationship management
(CRM) metrics
◦ Business process reengineering (BPR)
metrics
◦ Enterprise resource planning (ERP)
metrics
M03L07 Slide: 16
M03L07 Slide: 17
 The balanced
scorecard
enables
organizations to
measure and
manage
strategic
initiatives
M03L07 Slide: 18

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Bit120 m03 l07 - measuring the success of strategic initiatives

  • 2.  Types of change an organization can achieve, along with the magnitudes of change and the potential business benefit M03L07 Slide: 2
  • 3.  Strategic planning is the process of modifying a business to achieve above average profit Finance Operations R&D MarketingSales Service HR Strategic Initiative s M03L07 Slide: 3
  • 4.  A single strategic initiative affects as few as one and as many as all functional areas within and organization Finance Operations R&D MarketingSales Service HR Strategic Initiative s M03L07 Slide: 4
  • 5.  Superior businesses will address multiple strategic initiatives at any given time each of which must be evaluated for effectiveness Strategic Initiative s Strategic Initiative s Strategic Initiative s Strategic Initiative s M03L07 Slide: 5
  • 6.  To assess the effects of all strategic planning efforts in the business, an overall business baseline must be created Strategic Initiative s M03L07 Slide: 6
  • 7.  To assess the effects of all strategic planning efforts individual functional areas may also need one or more baselines Finance Operations R&D MarketingSales Service HR Strategic Initiative s M03L07 Slide: 7
  • 8.  Base lining may need to occur within various segments of one or more strategic initiatives Strategic Initiative s Strategic Initiative s Strategic Initiative s Strategic Initiative s Strategic Initiative s Strategic Initiative s Strategic Initiative s M03L07 Slide: 8
  • 9.  To assess the effects of all strategic planning efforts in the business, an overall business baseline must be created Finance Operations R&D MarketingSales Service HR Strategic Initiative s Efficiency ----- Effectiveness M03L07 Slide: 9
  • 10.  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 M03L07 Slide: 10
  • 11.  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 M03L07 Slide: 11
  • 12.  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 M03L07 Slide: 12
  • 13.  Comparing efficiency IT and effectiveness IT metrics for e-government initiatives M03L07 Slide: 13
  • 14.  Common types of efficiency IT metrics M03L07 Slide: 14
  • 15.  Effectiveness IT metrics focus on an organization’s goals, strategies, and objectives and include… M03L07 Slide: 15
  • 16.  Metrics for measuring and managing strategic initiatives include: ◦ Website metrics ◦ Supply chain management (SCM) metrics ◦ Customer relationship management (CRM) metrics ◦ Business process reengineering (BPR) metrics ◦ Enterprise resource planning (ERP) metrics M03L07 Slide: 16
  • 18.  The balanced scorecard enables organizations to measure and manage strategic initiatives M03L07 Slide: 18