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

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

Benchmarking

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

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

Throughput

is the amount of information that can travel through a system at any point

Transaction speed

the amount of time a system takes to perform a transaction 

System availability

the number of hours a system is available for users

Information accuracy 

the extent to which a system generates the correct results when executing the same transaction numerous times

Web traffic 

includes a host of benchmarks such as the number of page views, the number of unique visitors, and the average time spent viewing a web page

Response time 

the time it takes to respond to user interactions such as a mouse click

Usability 

the ease with which people perform transactions 

and find information. A popular usability metric on the 

Internet is degrees of freedom, which measures the number 

of clicks required to find desired information

Customer satisfaction

 measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer

Conversion rates

the number of customers an organization touches for the first time and persuades to purchase its products or services. This is a popular metric for evaluating the effectiveness of banner, pop-up, and pop-under ads on the Internet.

Financial

such as return on investment, cost-benefit analysis, and 

break-even analysis 

Metrics for Strategic Initiatives

Web site metrics

Supply chain management (SCM) metrics

Customer relationship management (CRM) metrics

Business process reengineering (BPR) metrics

Enterprise resource planning (ERP) metrics

(Web site metrics include)

• Abandoned registrations
• Abandoned shopping cards
• Click-through
• Conversion rate
• Cost-per-thousand
• Page exposures
• Total hits
• Unique visitors

(SUPPLY CHAIN MANAGEMENT METRICS)

• Back order
• Customer order promised cycle time
• Customer order actual cycle time
• Inventory replenishment cycle time
• Inventory turns (inventory turnover)

(CUSTOMER RELATIONSHIP MANAGEMENT METRICS)

• Sales metrics
• Service metrics
• Marketing metrics