- Key performance indicator :- measure that are tied to business drivers
- Metrics are detailed measured that feed KPIs
- Performance metrics fall into the nebolous area of business intelligence that is neither technology, nor business centered, but requieres input from both IT and business professionals.
Efficiency and Effectiveness
- Efficiency IT metric :- focuses on the extent to which an organization is using its resources in a optimal way. It also measure the performance of the IT system itself including throughtput, speed, and availability - doing things right
- Effectiveness IT metric :- measure the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increase - doing the right things.
Benchmarking - baseline metrics
- Regardless of what is measured, how it is measured and whether it is for the sake of efficiency or effectiveness, there must be benchmarks - baseline values the system seek to attain.
- Benchmarking - a process of continuously measuring system results, comparing those results to optimal system performance benchmark values, and identifying steps and procedures to improve system performance.
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