TUTORIAL CHAPTER 4

1. Define metrics and describe the relationship between efficiency IT metrics and effectiveness IT metrics.

• A metric is a standard measure to assess performance in a particular area. Metrics are about neither technology nor business strategy. Metrics are the detailed measure that feed KPIs (Key Performance Indicators). KPIs are the measure that are tied to business drivers.
• Effeciency IT metrics measure the perfomance of the IT system itself including throughput speed and availability.Effectiveness IT metrics measure the impact IT has on business processes and activities including customer satisfaction, conversion rates and sell-through increases. Effectiveness focus on how well an organization is achieving its goals and objectives, while efficiency focuses on the extent to which an organization is using its resources in an optimal way.

2. Explain why a business would use metrics to measure the success at strategic initiatives

• Metrics are at yhe heart of a good, customer- focused management system and any program directedat continous improvement.
• Supply Chain Management (SCM) metrics can hepl an organization understand how it's operating over a given time period. SCM cover many areas including procurement, production, distribution, warehousing, inventory, transportation and customer service. A good performance in one part of the supply chain is not sufficient.
• Customer Relationship Management (CRM) metrics is to track and monitor using repoerting and real-time performance dashboards.
• Business Process reengineering (BPR) is a standardized set of activities that accomplish a specific task, such as processing a customer's order and also redesign of workflow within and between enterprises. 
• Enterprise Resource Planning (ERP) Identify how an organization can use business process reengineering to improve its business. E.g: company A resolution cycle time is 3-4 weeks in order to claim for insurance while company B resolution time is 40 minutes to claim for insurance.