IT Measurements: A Critical Component of Organizational

IT Measurements: A Critical Component of Organizational Success

IT measurements involve the monitoring and maintenance of corporate processes and functions in order to align corporate strategic goals with that of internal and external customers. IT measurements are also by nature involved with the measurement of technological processes that occur within a given organizational structure. IT measurements are vital to the well being and productivity of an organization as they provide management and external customers with information regarding a companies productivity and strategic placement within the industry.

IT measurement can even provide vital information regarding customer and employee loyalty, which can impact management decisions down the line. IT measurements do not simply provide IT managers with information about a corporation's knowledge. IT measurements also have the ability to contribute to the bottom line, or the organization as a whole by providing important and relevant information regarding business results. These ideas are explored in greater detail below.

There are several areas of focus an organization can take with regard to measurements, the most important of which include emphasis on the mission, process, critical performance subsystems and individuals within an organization (McNamara, 1999). In each of these domains IT measurement can contribute to the overall well being and productivity of an organization in a variety of ways.

The most important area of measurement that IT contributes to is that of process performance. Process performance simply defined is a "series of steps designed to produce a product or service" (McNamara, 1999). Many processes are involved in the complex operations that comprise an organization. IT serves the role of spotting problems within the organization related primarily to knowledge dissemination, and subsequently identifying where improvement is needed in order for the organization to meet its goals as identified within the constraints of strategic planning (McNamara, 1999).

IT measurements help the organization ascertain the level of knowledge sharing that is occurring within the organization, and help the organization understand how well information is being disseminated to internal and external customers. IT is also involved in the arena of critical performance subsystems, which related directly to the connection of the internal organizational environment with the external organizational environment (McNamara, 1999). IT measurements enable the organizational management team to not only identify customer needs, but also fine tune processes that might cut across multiples systems (McNamara, 1999).

IT measurements must be structured in a manner that helps assess and maintain the overall organizational 'key indicators' and help align strategic goals of the business with the business plan as well as business operations (O'Sullivan, 2005). Managers who do not align their strategic goals with that of the business as a whole risk optimizing their own areas at the expense of the rest of the company (O'Sullivan, 2005).

IT measurements can also serve to improve productivity and morale, boosting employee performance and ultimately enhancing customer service when utilized appropriately (O'Sullivan, 2005). IT measurement help employees learn what impact their daily work has on operations and the overall strategic plan as a whole.

Creative and technologically advanced companies can use intranets and other resources provided by IT to help disseminate information, analyze and collect data and even manage projects efficiently and effetely within the organization.

IT helps enable companies to share information globally rather than just locally. The intranet of an organization can work to help facilitate alignment with extranet customers. IT measurements can among other things enhance supply chain management, improve employee and customer loyalty and improve productivity by providing efficient means for managers and employees to gain critical information regarding company processes (Godfrey, 1998).

IT measurements provide information not only regarding IT performance, but also about the health and well being of the organization as a whole. Because of this the information gathered from IT measurements should be considered a vital part of the infrastructure and knowledge base of any organization regardless of their function or the customers they serve.

IT measurements can provide managers among other things with valuable insight regarding the ability of an organization to align its strategic plans with the goals of the organization. IT measurements can also provide insight regarding internal vs. external customer satisfaction, and help an organization decide whether changes need to be made in the overall structure of the organization. As a result of these functions measurement provide a certain measurement of quality within the organization.