CHapter 4 (MEasurINg The SuCcess of StraTegIc InitIATiveS

Efficiency It metrics is measure the performance of the IT system itself including throughput speed and availability.  


refer to this link...

http://en.wikipedia.org/wiki/Material_efficiency


Types of efficiency IT metrics:

Throughput: The amount of information that can travel through a system at any point.   IT also can refer to this link

http://www.computerbusinessresearch.com/Home/business-information-systems/throughput 

Transaction speed: The amount of time a system takes to perform a transaction.When we log in our Bank Account online, the time it takes for us to access into a system after we log in our username and password is its transaction speed. It is the amount of time a system takes to perform a transaction. The more the transaction speed is, the better the customer satisfaction and provides more system availability and faster process.  Similarly, when we pay online using our credit card number, it involves some kind of a transaction speed too. This speed depends on the type of connection server, i.e, if you are connected through a dial-up or a DSL or Comcast cable. Sometimes, because of slow connection, some databases take so long that the system times out. It makes the user more frustrated trying to log in again and again. 

System availability: The number of hours a system is available for users.The service is operate 24 hour without sleep.For example,we can buy online anytime.

Information accuracy: The extent to which a system generates the correct results when executing the same transaction numerous times. 

• Web traffic is measured by viewing the traffic statistics found in the web server log file.  When a web page receives a hit, it receives a request to the server for a file not a page.  A web page can be made up of different files, including images, audio files, and java script files. Therefore a web page can receive multiple hits depending on the number of files on the page.
  
  The following types of information are collected when monitoring web traffic:
  
• The number of visitors to a web page.
• The average number of pages each visitor views
• The total length of a user's visit. (the more time they spend the more they're interested in your company)
• How long a page is viewed for.
• Domain classes – all levels of the IP Addressing information required to deliver Webpages and content.
• The most popular viewing times of the site (shows the best time to post promotions, and the best time to shut down for maintenance)
• The sequence of pages viewed by visitors from entry to exit

Response time: The time it takes to respond to user interactions such as a mouse click.we can click the websiTe and we can know about website easily.

Effectiveness IT Metric  measure the impact IT has on business process and activities including customer satisfaction,conversion,rates and sell-through increases.

Types of Effectiveness IT Metrics:

• Usability: The ease with which people perform transactions and/or 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: Th 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 (the earning power of an organization's assets), cost-benefit analysis (the comparison of projected revenues and  costs including development, maintenance, fixed, and variable), and break-even analysis (the point at which constant revenues equal ongoing costs).

EFFICIENCY VS EFFECTIVENESS

http://geekswithblogs.net/dthakur/archive/2004/06/09/6290.aspx





METRICS FOR STRATEGIC INITIATIVES


A metric is nothing more than a standard measure to assess performance in a particular area.



IT INCLUDE:

1) WEBSITE METRICS

1. Bounce Rate

The bounce rate of a page is the percentage of people who left your website after viewing that page. A page with a high bounce rate is performing poorly. You should always be comparing your landing pages to look out for ones that are bouncing a high percentage of visitors. These pages are ineffective and are literally driving people away from your website.  Comparing your high bounce pages to your low bounce pages is a great way to find out what’s working for your visitors and what isn’t.

2. Conversion Rate

The conversion rate of a page is the percentage of people who completed a desired action on that page, such as filling out a form. Pages with a high conversion rate are performing well. This is another great statistic to compare between your website’s landing pages. A landing page is usually the first page that your visitors will see when they arrive on your site, so it is crucial that your landing pages are getting visitors to convert into leads. If they’re not, then all of the traffic you are getting isn’t really valuable for your marketing efforts.

3. Traffic Sources

Your traffic sources will tell you where all of your site’s traffic is coming from when they first arrive. This is a great place to check your top of the funnel efforts and see where people heard about your site. If you’ve been working on your SEO efforts, then you should see your organic search volume increasing. If you’ve been doing good social media promotion, then you should see a lot of referral traffic from social media sites and blogs. Every business will have their own mix of organic, referral and direct traffic, so it’s important to watch over time so that you can track how your various marketing channels are driving traffic to your website.

4. Keywords

Your site keywords will show you which terms people are searching for when they find your site in a search engine. This is a great way to find out what people were actually looking for when they stumbled on your site. Usually, the top three or four keywords will be variations of your company name, but the results below those will give you a lot of insight into what people are trying to find when they come to your site. Chances are, you’ve already been optimizing around these words as part of your keyword strategy, and this data offers a chance to see how well you’re doing. If you notice you’re getting traffic around a keyword you haven’t optimized for, you might have found a keyword that isn’t very competitive, but is still relevant to your business. You should build some content around that keyword to really leave your competitors in the dust.

5. Visitors

The number of visitors is the number of unique individuals who have spent time on your website. This is the number that gives all of the other percentages their meaning. A word of caution though: do not focus on the number of visitors as your most important website metric. It is important to see how many people are ending up on your website, but this statistic is more of a reflection of your off-site marketing campaigns, and not of your website itself.

 

OK,I AS A SELLER IN FACEBOOK AND I SELL SHOES. MY EFFICIENCY SELL PRODUCT IN FACEBOOK IT CAN INCREASE MY DEMAND.PUBLIC PEOPLE CAN PURCHASE LIKE SHOES IN MY FACEBOOK.THEY CAN MAKE CHOICE IN MY WEBSITE.IF THEY WANT TO BUY,THEY PM ME AND I CONTACT  THEM.

MY EFFECTIVENESS IS 
I CAN MAKE THE SOCIAL WEBSITE AS AN ALTERNATIVE TO INCREASE MY MONTHLY DEMAND.IT EASY FOR PUBLIC PEOPLE TO BUY THE THING THEY NEED WITHOUT GO ANYWHERE.IT JUST ONLY CLICK SO,THEY CAN PURCHASE THE SHOES THEY NEED.THIS SITUATION CAN SAVE OUR TIME AND DO NOT TO SQUEEZE TO SHOPPING MALL TO BUY SHOES.SO,MY CUSTOMER CAN SHOPPING ONLINE JUST SIT AND CLICK.