Business Driven Technology
Unit 1
Achieving Business Success
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Unit OneO Chapter 1– Business Driven Technology
O Chapter 2 – Identifying Competitive Advantages
O Chapter 3 – Strategic Initiatives for Implementing Competitive Advantages
O Chapter 4 – Measuring the Success of Strategic Initiatives
O Chapter 5– Organizational Structures that Support Strategic Initiatives
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LEARNING OUTCOMES
1. Define metrics and describe the relationship between efficiency IT metrics and effectiveness IT metrics
2. Explain why a business would use metrics to measure the success of strategic initiatives
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METRICS: MEASURING SUCCESS
OProject – A temporary activity a company undertakes to create a unique product, service, or result
OMetrics – Measurements that evaluate results to determine whether a project is meeting its goals
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METRICS: MEASURING SUCCESS
OCritical success factors (CSFs) – The crucial steps companies make to perform to achieve their goals and objectives and implement strategies
O Create high-quality products
O Retain competitive advantages
O Reduce product costs
O Increase customer satisfaction
O Hire and retain the best professionals
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METRICS: MEASURING SUCCESS
OKey performance indicators (KPIs) – The quantifiable metrics a company uses to evaluate progress toward critical success factors
O Turnover rates of employees
O Number of product returns
O Number of new customers
O Average customer spending
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Efficiency and Effectiveness
O Efficiency MIS metric – measures the performance of the MIS system itself including throughput, speed, and availability
O Effectiveness MIS metric – measures the impact MIS has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases
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Benchmarking – Baselining Metrics
O Benchmarks – baseline values the system seeks to attain
O 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
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The Interrelationships of Efficiency and Effectiveness
MIS MetricsO Efficiency MIS metrics focus on
technology and include:O ThroughputO Transaction speedO System availabilityO Information accuracyO Web trafficO Response time
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The Interrelationships of Efficiency and Effectiveness
MIS MetricsO Effectiveness MIS metrics focus on
an organization’s goals, strategies, and objectives and include:O UsabilityO Customer satisfactionO Conversion ratesO Financial
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The Interrelationships of Efficiency and Effectiveness
MIS MetricsO Security is an issue for any organization
offering products or services over the Internet
O It is inefficient for an organization to implement Internet security, since it slows down processingO However, to be effective it must implement
Internet security O 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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The Interrelationships of Efficiency and Effectiveness
MIS MetricsO Interrelationships between efficiency and
effectiveness
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Metrics for Strategic Initiatives
O Metrics for measuring and managing strategic initiatives include:O Website metricsO Supply chain
management (SCM) metrics
O Customer relationship management (CRM) metrics
O Business process reengineering (BPR) metrics
O Enterprise resource planning (ERP) metrics
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WEBSITE METRICS
O Website metrics include:O Abandoned registrationsO Abandoned shopping cardsO Click-throughO Conversion rateO Cost-per-thousandO Page exposuresO Total hitsO Unique visitors
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SUPPLY CHAIN MANAGEMENT METRICS
O Back orderO Customer order promised cycle timeO Customer order actual cycle timeO Inventory replenishment cycle timeO Inventory turns (inventory turnover)
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CUSTOMER RELATIONSHIP
MANAGEMENT METRICSO Customer relationship management
metrics measure user satisfaction and interaction and includeO Sales metricsO Service metricsO Marketing metrics
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BPR AND ERP METRICSO The
balanced scorecard enables organizations to measure and manage strategic initiatives