Chap04, Measuring the Success of Strategic Initiatives

Multiple Choice

1. What type of metrics measure throughput, speed, and availability?

A. Efficiency IT metrics
B. Effectiveness IT metrics
C. All of the above
D. None of the above

2. What types of metrics measure customer satisfaction?

A. Efficiency IT metrics
B. Effectiveness IT metrics
C. Both efficiency and effectiveness IT metrics
D. None of the above

3. According to Peter Drucker, what are managers who do things right addressing?
A. Efficiency
B. Effectiveness
C. Both efficiency and effectiveness
D. Customer metrics

4. According to Peter Drucker, what are managers who do the right things addressing?
A. Efficiency
B. Effectiveness
C. Both efficiency and effectiveness
D. Customer Metrics

5. What percentage of total capital expenditures on IT are some organizations spending?

A. 5 percent
B. 25 percent
C. 50 percent
D. 75 percent

6. Which country is ranked first in terms of e-government effectiveness?

A. United States
B. Canada
C. Denmark
D. Australia

7. Which country is ranked first in terms of e-government efficiency?

A. United States
B. Canada
C. Denmark
D. Australia
8. Which of the following is not a type of efficiency IT metric?
A. Speed
B. Availability
C. Usability
D. Throughput

9. Which of the following is not a type of effectiveness IT metric?

A. Customer satisfaction
B. Conversion rates
C. Financial
D. Web traffic

10. Which term is used to describe the ease with which people perform transactions and/or find
information?
A. Usability
B. Customer satisfaction
C. Financial
D. Conversion rates

11. What is measured by such benchmarks as satisfaction surveys, percentage of existing customers
retained, and increases in revenue dollars per customer?
A. Usability
B. Customer satisfaction
C. Financial
D. Conversion rates

12. What is eBay constantly benchmarking?

A. IT efficiency
B. IT effectiveness
C. IT efficiency and IT effectiveness
D. Usability

13. What types of security must an organization offer its customers when it provides them with the ability
to purchase products over the Internet?
A. Encryption
B. SSL
C. Secure Sockets Layers
D. All of the above

14. What are the measures called that are tied to business drivers?
A. IT efficiency
B. IT effectiveness
C. Key performance indicators
D. None of the above

15. When considering the graph depicting the interrelationships between efficiency and effectiveness,
where does an organization ideally want to operate?
A. Upper right-hand corner
B. Lower right-hand corner
C. Upper left-hand corner
D. Lower right-hand corner
16. Which of the following do customer effectiveness metrics typically focus on?
A. Market share
B. Customer acquisition
C. Customer profitability
D. All of the above

17. What do most companies measure to determine the success of their Web sites?
A. Throughput
B. Speed
C. Traffic
D. Availability

18. Which of the following metrics help managers measure and manage strategic initiatives?
A. Web site metrics
B. Web site metrics, SCM metrics, SCR metrics, and RBP metrics
C. Web site metrics, SCM metrics, CRM metrics, BPR metrics, and ERP metrics
D. Web site metrics, SCM metrics, balanced scorecard metrics

19. Which metric does the Yankee Group report that 66 percent of companies use to solely determine
Web site success?
A. Abandoned shopping carts
B. Abandoned shipping carts
C. Amount of revenue
D. Amount of traffic

20. Which of the following are supply chain management metrics?

A. Abandoned shopping carts, page exposures, total hits, unique visitors
B. Back order, customer order promised cycle time, customer order actual cycle time
C. Number of prospective customers, cases closed same day, number of marketing campaigns
D. Learning and growth perspective, internal business process perspective, customer perspective,
and financial perspective

20. Which of the following are customer relationship management metrics?

A. Abandoned shopping carts, page exposures, total hits, unique visitors
B. Back order, customer order promised cycle time, customer order actual cycle time
C. Number of prospective customers, cases closed same day, number of marketing campaigns
D. Learning and growth perspective, internal business process perspective, customer perspective,
and financial perspective

21. Which of the following are Web site metrics?

A. Abandoned shopping carts, page exposures, total hits, unique visitors
B. Back order, customer order promised cycle time, customer order actual cycle time
C. Number of prospective customers, cases closed same day, number of marketing campaigns
D. Learning and growth perspective, internal business process perspective, customer perspective,
and financial perspective
22. Which of the following are business process reengineering and enterprise resource planning metrics?
A. Abandoned shopping carts, page exposures, total hits, unique visitors
B. Back order, customer order promised cycle time, customer order actual cycle time
C. Number of prospective customers, cases closed same day, number of marketing campaigns
D. Learning and growth perspective, internal business process perspective, customer perspective,
and financial perspective

23. What is a management system that enables organizations to clarify their vision and strategy and
translate them into action?
A. The balanced scorecard
B. Kaplan and Nortan report
C. Business process
D. None of the above

24. Which of the following is part of the balanced scorecard?

A. The learning and expanding perspective
B. The external business process perspective
C. The supplier perspective
D. The financial perspective

25. How many perspectives does the balanced scorecard use to view an organization?
A. Two
B. Three
C. Four
D. As many as required by the organization

True/False

1. Benchmarks are baseline values the system seeks to attain.

2. Canada is ranked first in terms of e-government efficiency IT metrics.

3. Effectiveness IT metrics include throughput, speed, and availability.

4. Customer metrics assess the management of customer relationships by the organization.

5. Measuring the amount of Web site traffic is the best way to determine a Web sites success.

Structure

1. Explain the difference between efficiency and effectiveness.

2. Define the relationship between benchmark and benchmarking.

3. Explain the interrelationships of efficiency and effectiveness IT metrics.

4. Describe how an organization should determine the efficiency and effectiveness of its Web site.