Day #34: KPI and metrics

We keep being inspired by the course assignment! In order to evaluate business strategy and BRM policies, we quite often make use of KPIs or Key Performance Indicators. But the digital era and the progressive digitization and digitalization in our society make difficult to measure the return of investment (ROI). Old ROI metrics focused on efficiencies, but today they should talk about revenue and customer experience.

That is very well described in the article How to measure IT ROI in the digital era, from a website called The Enterprisers Project, a community helping IT leaders to solve problems.

Specific metrics are considered and split in three categories: strategic, operational and cost impact. Examples of the strategic impact metrics are the customer retention or the time to market for new services. Operational impact metrics might include increase in scale and operational efficiencies. Finally, cost impact metrics are related to business costs or total cost of ownership assets.

Besides, how many IT ROI metrics do you need? Answer below the picture!

a) One is enough
b) Two or three
c) Five to nine
d) Around 15
e) As much as possible

Image from getthematic.com

And the answer, according to Paul Proctor, analyst at Gartner, is.... c!