bit120 m03 l07 - measuring the success of strategic initiatives
TRANSCRIPT
M03L07 Slide: 1
Measuring the success of strategic initiatives
M03L07
Finding Opportunity Using BPR
Types of change an organization can achieve, along with the magnitudes of change and the potential business benefit
Slide: 2
M03L07
Strategic Planning and Technology Strategic
planning is the process of modifying a business to achieve above average profit
Finance
Operations
R&D
MarketingSales
Service
HR
Strategic
Initiatives
Slide: 3
M03L07
Strategic Planning and Technology 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
Initiatives
Slide: 4
M03L07
Strategic Planning and Technology Superior
businesses will address multiple strategic initiatives at any given time each of which must be evaluated for effectiveness
Strategic
Initiatives
Strategic
Initiatives
Strategic
Initiatives
Strategic
Initiatives
Slide: 5
M03L07
Strategic Planning and Technology – Base lining
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
Initiatives
Slide: 6
M03L07
Strategic Planning and Technology - Base lining
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
Initiatives
Slide: 7
M03L07
Strategic Planning and Technology - Base lining
Base lining may need to occur within various segments of one or more strategic initiatives
Strategic
Initiatives
Strategic
Initiatives
Strategic
Initiatives
Strategic
Initiatives
Strategic
Initiatives
Strategic
Initiatives
Strategic
Initiatives
Slide: 8
M03L07
Strategic Planning and Technology – Base lining
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
Initiatives
Efficiency ----- Effectiveness
Slide: 9
M03L07
MEASURING INFORMATION 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
Slide: 10
M03L07
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
Slide: 11
M03L07
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
Slide: 12
M03L07
BENCHMARKING – BASELINE METRICS
Comparing efficiency IT and effectiveness IT metrics for
e-government initiatives
Slide: 13
Who’s #1
M03L07
THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS
Common types of efficiency IT metrics
Slide: 14
M03L07
THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS
Effectiveness IT metrics focus on an organization’s goals, strategies, and objectives and include…
Slide: 15
M03L07
METRICS FOR STRATEGIC INITIATIVES
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
Slide: 16
M03L07
Customer Relationship Management Metrics
Slide: 17
M03L07
BPR And ERP Metrics
The balanced scorecard enables organizations to measure and manage strategic initiatives
Slide: 18