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 – 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 producers
to improve system performance
THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT
METRICS
- Common
types of efficiency IT metrics
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Efficiency IT Metrics
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Throughput
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The amount of information that can travel through a system
at any point.
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Transaction speed
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The amount of time a system takes to perform a
transaction.
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System availability
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The number of hours at system is available for users.
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Information accuracy
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The extent to which a system generates the correct results
when executing the same transaction numerous times.
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Web traffic
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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.
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Response time
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The time it takes to respond to user interactions such as
a mouse click.
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- Effectiveness
IT metrics focus on an organization’s goals, strategies, and objectives and
include…
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Effectiveness IT Metrics
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Usability
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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.
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Customers satisfaction
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Measured by such benchmarks as satisfaction surveys,
percentage of existing customers retained, and increases in revenue dollars
per customer.
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Conversion rates
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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.
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Financial
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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 content revenues equal ongoing
costs).
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