Chapter 4 - Measuring The Succes Of Strategic Initiatives

Key Performance Indicator ( KPI ) 

 - measures that are tied to business drivers

Metrics 

- detailed measures that feed KPIs

Efficiency IT metrics

*measrues the performance of the IT system itself including throughput , speed and availability.

Effectiveness of IT metrics

*measrues the impact IT has on business processes and activities including customer satisfaction,conversion rates and sell through increases.

Benchmarking ( Baselining metrics )

- process of continuousy measuring system results . comparing those results to optimal system performance and identytifying steps and procedured to improve system performance.

Efficiency IT metrics

1. Throughput - the amount of info that can travel through a system at a point.

2, Transaction speed - the amount of time a system takes to perform a transaction.

3. System availability - the number of hours a system is available for uers.

4. Information accuracy - the extent to which sysytem generates the correct results

5. Web traffic - includes a host of benchmarks

6. Response time - the time it takes to respond to user interactions.

* effectiveness of IT metrics

WEBSITE Metrics

* abandoned registrations

* abandoned shopping cards

* click-through

* conversion rate 

* cost - per - thousand

* page exposures

* total hits

* unique visitors

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CHAPTER 3 : STRATERGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE                                     ADVANTAGES


Organizations can undertake high-profile stratergic initiatives including :

- Supply Chain Management ( SCM )
- Customer Relationship Management ( CRM )
- Business Process Reengineering ( BPR )
- Enterprise Resource Planning ( EPR )


Supply Chain Management ( SCM )

- Involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability,

4 BASIC components of supply chain management include :

1. Supply chain stratergy - stratergy of managing all resources to meet customer demand.
2. Supply chain partner - partners throughout the supply chain that delivers finished products , raw                                              materials and services.
3. Supply chain operation - schedule for production activities.
4. Supply chain logistics - product delivery process

  Effective and efficient SCM system can enable organization to :
- Decrease the power of its buyers
- Increase its own supplier power
- Increase switching costs to reduce the threat of substitute products or services
- Create entry barriers thereby reducing the threat of new entrants
- Increase efficiences while seeking a competitive advantage through cost leadership.


Customer Relationship Management ( CRM )

* Involves managing all aspects of a customer's relationship with an organization to increase customer loyalty & retention & organization's profitability.

CRM can enable an organization to :

- identify types of customers
- design individual customer marketing campaigns
- understand customers buying behaviour



Business Process Reengineering

* Business Process means a standardized set of activities that accomplish a specific task , such as processing customer's orders.

* Business Process Reenginering means the analysis and redesign of workflow within and between entreprises.





Enterprise Resource Planning

* intergrates all departments and functions tthroughout an organization into a single IT system so that employees can make decisions by viewing enterprisewide info on all business operations.

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