DEFINITION OF METRICS
Metrics is a measurement by which is efficiency, performance, progress or quality of a plan, process or product can be assessed.
Metrics is a measurement by which is efficiency, performance, progress or quality of a plan, process or product can be assessed.
KEY PERFORMANCE INDICATOR (KPIs)
KPIs are the measure that are tied to business drivers. Performance metrics fall into a nebulous area of business intelligence that is neither technology nor business-centered, but this area requires input from form both IT and business professionals to find success.
In order to have a success in measuring the strategic initiatives, the organization should have the efficiency and effectiveness. Efficiency and effectiveness metrics are two primary types of IT metrics.
EFFICIENCY IT
metrics measure the performance of It system itself including throughput, speed, availability.
EFFECTIVENESS IT
metrics measure the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases.
Benchmarking - Baseline metrics
Benchmarking is the process of continuously measuring system results, comparing those results to optimal systems performance, and identifying steps and procedures to improve system performance.
The Interrelationships of Efficiency and Effectiveness IT Metrics
What is a metric? A metric is nothing more than a standard measure to assess performance in a particular area.
More business professionals are familiar with financial metrics. Different financial ratios are used to evaluate a company performance.
Most common financial ratios include:
- Internal rate of return (IRR)
- Return on investment (ROI)
- Payback method
- Break - even analysis
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