Chapter 4 : Measuring The Success of Strategic Initiatives

Assalamualaikum,

Service Philosophy

A metric is a holder for information, usually a business performance measurement. A metric can be used alone or with other metrics to define the calculation for  a key performance indicator (KPI), which measures performance against a business objective. Examples of metrics are the working duration of a process, the name of the assigned user, a supplier's response time and the cost of the risk assessment step in an insurance process.

What is Effectiveness IT Metrics?
       
        Effectiveness IT metrics measures how IT affects specific aspects of the business world and a part of the business process. The given aspects include conversion rates, customers satisfaction in addition to self-through increases. In short, Effectiveness measures how well a company, or business is reaching its objectives, and constantly questions as to whether the right actions being taken to meet the given objectives. An example in real life would be how well customers are treated at the Apple store when purchasing a new Ipod or computer. Also, the performance of the Effectiveness IT metrics is measured in Brenchmarks, so progress can be assessed. Apple being ranked number one in customer service, after taking a number of different surveys, would be considered to be a Brenchmark. Thousands and thousands of dollar are spent every year by companies, in order to see how well they are doing, not just internally but externally.

What is Effeciency IT Metrics?

         Efficiency IT metrics measure the performance of the IT system itself including throughput, speed and availability. Even though Effectiveness IT metrics is very similar to Efficiency IT metrics, however, there are several differences that place between the two. For example, Efficiency IT metrics refers to the technical aspects such as rate of speed, and availability. In example, the rate of speed is used in reference to transactions. So, when i go to H&M to purchase clothing, the time that it takes me to get into the line, the time that amounts for the cashier to ring up the products that i am purchasing and how long it takes for my credit card to run through. They are so many different elements that can be used and measure in the speed in transactions.

Effectiveness and Efficiency using a Facebook in IT Metrics

I had my own hijab/headscarves for Muslim woman's business. I see that Facebook as one of the important medium in marketing my products more broadly. Nevertheless, a few questions came out as I plans to use Facebook as a place for me to do online business. Did I meet my customer's satisfaction if they making purchases on my products? Does this business online are effective enough or vice versa? 

In my personal opinion, it certainly saves time for the customers in purchasing the products they need because they do not need to go to the main shop. They as well get clearer picture of product they need compared with listening experiences from friends who have bought the product. Thus its saving their time, money, energy and meet their satisfactions. Yes, it is effective to do online business. I will get immediate feedback from my customers on my page compared with the use of feedback form. Negative feedback will be used as booster to make improvement while positive feedback will become as a benchmark either i had achieved my goals or not.