Quiz 4: Measuring the Success of Strategic Initiatives

Business

Data into Information: Data in itself is of no use. Raw numbers, figures, statistics are useful only to a point. Data becomes truly useful only once it becomes information. Economists use brainstorm tool to measure the economy. Economists can turn data into information by presenting it in the following forms: • Written word • Images • Graphs • Charts • Maps Data is turned into information by the one who interprets the trend, understands it, and tries to find an appropriate way to make it understand to others. Data is needed to create useful information.

Efficiency IT metrics: Efficiency IT metrics are used to measure the performance of IT systems. It includes measuring performance in terms of throughput, speed, and availability. It measures the degr ee to which a company is using its resources in an optimal manner. The company A can use the efficiency IT metrics to concentrate on the technology its following currently. A must benchmark its applications in operations. It implies creating baselines by • Measuring systems performance continuously • comparing the outcome with optimal performance • Identifying methods to improve existing performance. By setting a benchmark and following the procedure, A could monitor and ensure the correct functioning of its IT applications continuously. Adopting such an efficiency metric strategy is quite important in the web applications field that are used by the customers and suppliers.

Issues encountered by Economists: When economists attempt to measure the economy, they encounter following issues. a) There are differences in government's objectives. While paying attention to meet social objectives, the economic objectives are sometimes counter run. b) There are disparities in what government agencies report and what individuals know about their own standards. If the government statisticians announce that the inflation rate has been "only" 3%, while individuals feels that their own costs of living has risen even faster and there find disparities.