Differentiation Between Effectiveness And Efficiency Of IT Metrics.

What is Effectiveness IT Metrics?

            Effectiveness IT metrics measures how IT affects specific aspects of the business world, and a part of the business process. The given aspects include conversion rates, customer satisfaction in addition to sell-through increases. In short, Effectiveness measures how well a company, or business is reaching its objectives, and constantly questions as to whether the right actions being taken to meet the given objectives. 

An example in real life would be how well customers are treated at the Apple store when purchasing a new Ipod or computer. Also, the performance of the Effectiveness IT Metrics is measured in Benchmarks, so progress can be assessed. Apple being ranked number one in customer service, after taking a number of different surveys, would be considered to be a Benchmark. However, surveys are not just done in fortune 500 companies, they are also performed at companies that don't make as much of a profit but are just as productive, like a value chain. Thousands and thousands of dollars are spent every year by companies, in order to see how well they are doing, not just internally but externally. When it comes to internally, companies ask all of their employees at all levels to take an in depth survey to make sure the company is doing everything in it's power to make sure they are working well as a company. When it comes to externally, the company asks it's consumers if they could do anything better to meet the customers needs. This can also be done with surveys but can also be performed by a number of different ways. Both surveys are used to see how they can do better, much like the traditional practice of the Japanese business model, Kaizen, constantly seeing how well things can be done. 

 

What is Efficiency IT metrics?
            Effectiveness IT Metrics is very similar to Efficiency IT Metrics, however, there are several differences that place between the two.

For example,
 Efficiency IT Metrics refers to the technical aspects such as rate of speed, and availability. In example, the rate of speed is used in reference to transactions. So, when I go to Khol's to purchase clothing, the time that it takes me to get into the line, the time that amounts for the cashier to ring up the products that I am purchasing and how long it takes for my credit card to run through. They are so many different elements that can be used and measure in the speed of transactions.  It also measure how fast information can travel through out the company, like and intranet, the speed of transactions between venders and it can even measure the amount of time a company is available to assist it’s consumers. An example in real life would refer to the number of page views, traffic, on a website. In terms of traffic, traffic is used to measure how many people how visited a website in a given period of time. In illustration, how many people visit google.com each and everyday. There are thousands upon milions of people that come to the website in order to have their questions answered. The amount of people that come is considered to be traffic. In addition, Benchmarks are also used in this case to measure progress. Another example, the speed of which information travels from anywhere in the company, is a benchmark used to measure progress, called Throughput.