CHAPTER 4 : MEASURING THE SUCESS OF THE STRATEGIC INITIATIVES

• Key performances indicator - measure that are tied to business drivers.
• Metrics are detailed mesures that feed KPIs
• Performances metrics fall into the business intilligence that is neither technology, nor business centered , but requires input from both IT and business professionals.

EFFICIENCY AND EFFECTIVENESS

• Efficiency IT metric - measures the performances of the IT system itself including throughput, speed, and availability.
• Effectiveness IT metric - mesures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increase.

BENCHMARKING- BASE LINE METRICS

• Benchmarking - a process of continously measuring systems results, comparing those results to optimal systems performances, and identfying steps and procedures to improve system performance.

BENCHMARKING - BASELINING METRICS

• E-government bencmarking

EFFICIENCY IT METRICS

1. Efficiency IT metrics focus on technology and include

• Throughput - 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 numbers 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 time
• Web traffic - includes a host of bencmarks such as the number of page views, the number of unique visitors, and the average time spent viewing a web page.
• Response time - the times it takes to response to user interactions such as a mouse click.

EFFECTIVENESS IT METRICS

1. Effectiveness IT metrics focus on an organization's goals ,strategies, and objectives  and include :

• 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 customers.
• 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 to investment, cost-benefit analysis.

THE INTERRELATIONSHIP OF EFFICIENCY AND EFFECTIVENESS IT METRICS

METRICS FOR STRATEGICS INITIATIVES

1. Metrics for measuring and managing strategis initiative include :

• Web site metric  

              - website metric include:

                      *Abandoned registrations - number of visitors who start the process of completing a

                                                                   registration page and then abandon the activity.

                      *Abandoned shopping carts - Number of visitors who create a shopping cart and start

                                                                      shopping and then abandone the activity before paying 

                                                                      for the merchandise.

                      *Click-through - count of the number of people who visit a site, click on an ad, and are 

                                                  taken to the site of the advertiser.

                      *Conversion rate - percentage of potiential customers who visit a site and acctually buy

                                                     something.

                      *Cost-per-thousand (CPM) - sales dollars generated per dollar of advertising.This is

                                                                     commonly used to make the case for spending money to

                                                                     appear on a search engine.

                     *Page exposures - average number of page exposures to individual visitors.

                     *Total hits - number of visit to a website, many of which may be by the same visitor

                     *Unique visitors - number of unique visitors to a site in a given time.This is commonly

                                                   used by Nielsen/Net ratings to rank the most populat web sites.

• Supply chain management (SCM) metrics

                     *Back order - an unfilled customers order .A back order is demand against an item

• Customer realationship management (CRM) metrics
• Business process reengineering (BPR) mterics
• Enteprise resources planning (ERP) metrics.

CHAPTER 3: STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGE

LEARNING OUTCOME 

•  List and describe the four basic components of supply chain management
•  Explain customer relationship management systems and how they can help organizations understand their customers
• Summarize the importance of enterprise resource planning systems
•  Identify how an organization can use business process reengineering to improve its business

Organizations can undertake high-profile strategic initiatives including:

1. 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]

Four basic components of supply chain management include:

1.Supply chain strategy – strategy for managing all resources to meet customer demand

2.Supply chain partner – partners throughout the supply chain that deliver finished products, raw materials, and services.

3.Supply chain operation – schedule for production activities

4.Supply chain logistics – product delivery process

WAL- MART AND PROCTER & GAMBLE [P&G] SCM

What is the effectiveness and efficientcy of SCM systems to an organization :

1.Decrease the power of its buyers

2.Increase its own supplier power

3.Increase switching costs to reduce the threat of substitute products or services

4.Create entry barriers thereby reducing the threat of new entrants

5.Increase efficiencies while seeking a competitive advantage through cost leadership

2. Customer relationship management (CRM)

•CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprisewide level

•

•CRM can enable an organization to:

–Identify types of customers

–Design individual customer marketing campaigns

–Treat each customer as an individual

–Understand customer buying behaviors

CRM OVERVIEW

3. Business process reengineering (BPR)

•Business process – a standardized set of activities that accomplish a specific task, such as processing a customer’s order

•

•Business process reengineering (BPR) – the analysis and redesign of workflow within and between enterprises

–The purpose of BPR is to make all business processes best-in-class

4. Enterprise resource planning (ERP)

•Enterprise resource planning (ERP) – integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprisewide information on all business operations

• Keyword in ERP is "enterprise

ERP systems collect data from across an organization and correlates the data generating an enterprisewide view

     

                          CHAPTER 2: IDENTIFYING COMPETITIVE ADVANTAGE


learning outcome:

• knows how the competitive advantages are typically temporary
• can list and explain the Porter's Five Forces Model
• compare Porter's three generic strategies 
• can describe relationship between business processes and value chain

what is competetive advantage? 

• its an environmental scanning throughout external nor internal
• the concept of what makes your products / services are different from others 
• PESTEL

competitive advantage: 

• porter's five forces model
• porters 3 generise strategies
• relationship between business process and value chain 

the five forces model:

1. BUYER POWER

• in the process to produce low buyer power ( at the same time create competitive advantage ), an organization must make it more attractive to buy it from the company, not from the competitors
• one of the best way is to practices of it

     2.  SUPPLIER POWER

• supply power us the converse of buyer power
• suppliers ---} organization ( organization wants supplier power low here)
• organization ---} customers (organization wants supplier power high here)
• low : when buyers choices are many
• high : when buyers have few choices of whom to buy

     3.  THREATS OF SUBSTITUE PRODUCTS & SERVICES 

• to understand, when customers can use different products to fulfill the same need, the threat of substitue exist
• switching cost which makes customer changes from using the certain product to using another brand of product.
• high: when are many alternatives of product
• low: when only few alternatives to choose 

     4.  THREARS OF NEW ENTRANTS 

• many threats comes from unexist company or have a presence in a given industry or market
• it makes the top management to follow the trends, especially in technology that might give rise to news competitors.
• high: when its easy to enter a market
• low: when there are barriers to enter market

      5.  RIVALRY AMONG EXISTANCE COMPETITORS

• existing competitors are not much of the threats because normally every firm have its own niche(specialty)
• however, in changing of management, ownership, or rules can give rise of the threats for a long time survival frim existing firm
• high: when competition is fierce in market
• low: when co,mpetition is more complacent   

the porter's 3 generis strategies

• cost leadership
• differentiation
• focused strategies

relationship between business and value chain

• add value to its products and services that support a profit margin for the firm

   


                             NOTES OF CHAPTER 1 : BUSINESS DRIVEN TECHNOLOGY


Learning outcome:

1. identify business department and how technology helps each of the department 
2. comparison between mis and it
3. the relations among people, information technology and information

types of business operations (departments):

1. customer service
2. human and resources 
3. sales and marketing
4. finance
5. security
6. operation management

technology goals:

1. global expansion
2. streamline supply chain
3. generate growth
4. create competitive advantage
5. improve customer satisfaction
6. improve productivity
7. reduce cost 

information:

1. data: raw facts that describe the characteristic of an event 
2. information: data converted into a meaningful and useful context
3. business intelligence: applications and technologies that are used to support decision-making efforts 

it resources: 

1. people use
2. information technology to work with 
3. information 

Its me

    

 

                                                        A LITTLE OF MYSELF

• doing first blog for mgt's assignment
• Nur Anita Bt Abdul Rahman
• currently 18 [ 21.12.1996 ]
• studying at uitm lendu [ kag ]
• love my life 
• love me