CHAPTER 4: MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

EFFICIENCY & EFFECTIVENESS IT METRICS

definition of metrics... 
standard of measurement by efficiency, performance, progress or quality of a plan, process or product can be assessed.

efficiency IT metrics

• metrics is about measure a performance of IT system itself including speed, availability & etc.
• IT may be focused back-offline efficiency instead of the premium customer service the company wishes to provide.
• in example, how efficiency and the rate of speed customers from Samsung store can purchase or repair their gadgets until they got what they want.

effectiveness IT metrics

• measure the impact IT has on business process & activities including customer satisfaction, conversion rates ell increase.
• 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.
• for example, in real life how would be how well customers are treated at the Samsung store when purchasing a new smartphone or gadgets.

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.The 4 basic components of supply chain management are:

• strategy-the strategy for managing all the resources required to meet customer demand for all products and services.
• partners-the partners chosen to deliver finished products,raw materials, and services including pricing, delivery, and payment processes along with partner relationship monitoring metrics.
• operation-the schedule for production activities including testing,packaging, and preparation for delivery.Measurements for this component include productivity and quality.
• logistics-the product delivery processes and elements including orders,warehouse,carrier,defective product returns, and invoicing.(see figure below)

 
Effective and efficient SCM systems can enable an organization to:

• decrease the power of its buyer.
• 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 efficiencies while seeking a competitive advantages through cost leadership.(see figure below)