Lets proceed to this chapter .KPIs is the measure that are tied to business drivers. Performance metrics fall into a nebulous area of business intelligence that is neither technology nor business-centered, but this area requires input from form both IT and business professionals to find success.
To succeed in measuring the strategic initiatives, an organization should have the efficiency and the effectiveness. Efficiency and effectiveness metrics are two primary types of IT metrics.
-Efficiency IT metrics measure the performance of It system itself including throughput, speed, availability.
-Effectiveness IT metrics measure the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases.
-Effectiveness IT metrics measure the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases.
benchmark
It is the process of continuously measuring system results, comparing those results to optimal systems performance, and identifying steps and procedures to improve system performance.
It is the process of continuously measuring system results, comparing those results to optimal systems performance, and identifying steps and procedures to improve system performance.
A metric is nothing more than a standard measure to assess performance in a particular area.
- The most common financial ratios include:
- Internal rate of return (IRR)
- Return on investment (ROI)
- Payback method
- Break - even analysis
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