ISOM Lecture 4

ISOM Lecture 4 - Chapter 4 Key Performance Indicators(KPIs...

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Chapter 4 Key Performance Indicators ( KPI s) – Quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. –They differ depending on the organization. •A business may have as one of its KPIs the percentage of its income that comes from return customers. •A university may have as one of its KPIs the KPI on graduation rate of its students. •A Customer Service Department may have as one of its KPIs percentage of customer calls answered in the first minute. –Whatever KPIs are selected, they must reflect the organization's goals, they must be key to its success, and they must be quantifiable (measurable). •Efficiency and effectiveness IT metrics are two ways to measure the success of IT strategic initiatives Efficiency IT metrics – measure the performance of the IT system itself including throughput, speed, availability, etc. TECHNICAL •“Doing things right” Effectiveness IT metrics – measure the impact IT has on business processes and activities including customer satisfaction, conversion rates, sell-through increases, etc. •“Doing the right things”
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This note was uploaded on 02/16/2011 for the course ISOM 247 taught by Professor Jukic during the Spring '08 term at Loyola Chicago.

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ISOM Lecture 4 - Chapter 4 Key Performance Indicators(KPIs...

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