Key performance indicators and metrics are used to measure the success of strategic initiatives and technology. Benchmarking involves continuously measuring results, comparing to optimal baseline values, and identifying improvements. Metrics fall into categories like supply chain management, customer relationship management, business process reengineering, and enterprise resource planning. The balanced scorecard enables measuring and managing strategic initiatives.

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Measuring the Success
of Strategic Initiatives

2. 4-2
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

3. 4-3
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

4. 4-4
THE INTERRELATIONSHIPS OF
EFFICIENCY AND EFFECTIVENESS IT
METRICS
• Interrelationships between efficiency and
effectiveness

5. 4-5
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

6. 4-6
METRICS FOR STRATEGIC
INITIATIVES

7. 4-7
Supply Chain Management Metrics

8. 4-8
Customer Relationship Management
Metrics

9. 4-9
BPR And ERP Metrics
• The balanced
scorecard
enables
organizations
to measure and
manage
strategic
initiatives