Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
¶ … metrics to measure the effectiveness of IS and IT values within an organization. The paper provides the differences between Effectiveness IT metrics and Efficiency IT metrics. The financial indicators and technical indicators are used to measure the IT values within IT department. The paper also draws the examples of conceptual model and IS success model in assessing the IS value in the IT department. The traditional financial ratio such as Return on Equity (ROE), and economic value which include level of productivity, increase in profitability and improvement in data accuracy have also been used to measure IT value.
In a contemporary business environment, Information Technology (IT) has become a powerful tool that business employs to achieve competitive advantages. IT improves time-to-market, enhance product quality, and decision support system. While firms incur substantial costs on IT to enhance business performances, measurement of IT investment is essential to examine the extent the IT has been able to enhance cost savings, business reputation, and improved productivity. Measuring the IT values is essential to measure the benefits that can be derived from the IT investments.
The objective of this paper is to recommend various metrics that could be used measure value in the IT department.
To measure the effectiveness of an IT department, the paper provides metrics to measure IT value in the IT department.
Metrics to Measure the Effectiveness of IT Department
One of the difficulties to manage an IT investment is the challenges in measuring the IT values. Effectiveness IT metrics measures the extent IT has been able to affect organizational performances. This includes customer satisfaction and conversion rates. On the other hand, Efficiency IT Metrics refers to the technical aspects, which includes availability and rate of speed with reference to transactions. Both the effectiveness and efficiencies of IT metrics are used to measure IT value...
The metrics to measure IT values are:
Financial Performance Indicator
Technical Performance Indicators
Bardhan, Krishnan, Lin (2004) argue that financial performance indicator includes return on assets (ROA), return on equity (ROE), increase in profitability, and return on investment (ROI).
On the other hand, Technical Performances Indicator reveals the extent the computer hard and software installed in the IT department have been able to improve company performances. Many organizations invest in IT to improve the efficiency of Human Resources Department (HRD). For example, firms use Human Resources Information System (HRIS) to enhance the performances of the human resources. In collaboration with the IT department, HRIS investments could used to be measure the extent the IT has been able to improve employee performances, and reduction of employee turnover. In addition, system availability and responsiveness, quality, speed and efficiency of the software used in the IT department are used to measure the effectiveness of the IT department.
Added to the financial and technical metric, there are methods to measure economic value of an IT department of a company.
Methods to Measurement of Economic Value of an IT department
In implementing the IT investment decision, the costs come up first before the benefits are realized. Net current value of future costs and benefits are used measure the economic value of the IT investment. Malec (2009) draws an example of the economic value of the IT investment in the Healthcare practice. The author argues that some hospitals have implemented the Electronic Health Record (EHR) in medial practice. Measurement of the economic values of the IT investment in the health organization includes…
References
Bardhan, I. Krishnan, V. & Lin, S. (2004). A Model to Measure the Business Value of Information Technology: The Case of Project and Information Work. INFORMS and DSI conferences, and seminar.
Chung, S.H. & Rainer, R.K. & Lewis, B.R. (2006).The Impact of Information Technology Infrastructure Flexibility on Strategic Alignment and Applications Implementation. College of Business Eastern Michigan University.
DeLone, W.H. & McLean, E.R. (2003). The DeLone and McLean Model of Information Systems Success: A Ten-Year Update. Journal of Management Information Systems. 19(4): 9 -- 30.
Malec, B.T. (2009).Measuring the Economic Value of IT Investments:
Change Plan Effectiveness of the organizational change There are various questions that the leaders of the organization have to ask themselves such as what happened after the changes? Were the expected results got? What were results got that were unexpected? Did the performance of the organization improve? Did the performance decline? Do any adjustments need to occur? The changes that have been implemented should be reflected on the performance of the organization.
There are many more different quantitative and qualitative metrics that have been engineered to assess and reduce security risk. Structured as quantitative or qualitative -- meaning that some are structured according to empirical, mathematical rules (quantitative; usually from disciplines such as finance), whilst others are structured in an experiential manner derived from interviews, observation, and so forth (qualitative) -- each has its benefits and disadvantages. Uses of security metrics and
Measuring Outcomes, Assessment, and Research Health leader measures and metrics for assessment and evaluation of effectiveness, efficiency, performance, efficacy, and quality Area of measurement Specific measurement items Business value (financial) Activity-based costing Return on investment and cash flow Value of employee Professional development Satisfaction and retention of employee Learning and growth value Time to develop new services Improvement of quality Value of customer Satisfaction of patients Clinical outcomes The four areas are given focus by senior management of health care systems, to measures past and current
How Does the Use of In-home Monitoring for CHF Impact Re-hospitalization Rates? Impact on In-home Monitoring for CHF on Re-hospitalization Rates Congestive heart failure (CHF) is one of the major cardiovascular diseases with high global incidence and prevalence in the United States. While numerous advances in evidence-based medical therapy continues to occur, congestive heart failure remains a major problem as it results in significant burden of mortality, morbidity, and costs. The United
Security Metrics Governance of Information Security: Why Metrics Do Not Necessarily Improve Security The objective of this study is to examine the concept that the use of various Metrics has tended to improve security however, Metrics alone may not necessarily improve security. This study will focus on two well-known metrics. The work of Barabanov, Kowalski and Yngstrom (2011) states that the greatest driver for information security development in the majority of organizations
It has been widely accepted as an industry standard for project management software. Many large companies such as Intel have benefited from it to the extent that case studies were conducted on the results. Many such case studies are documented on Microsoft's website as a testament to the success of this utility. Microsoft Project allows employees, resources, and tasks to be defined. A wide range of relationships can be