The purpose of this report is to survey the efficiency and effectiveness of IT metrics one of the company, Apple Online Store. By examining a range of recently books and internet sites on the topic, this report describes how efficiency and effectiveness of IT metrics can improve and add value to Apple business strategies based on its problem. Efficiency IT metrics focus on technology itself. We are required to review the most common types of it. These efficiency metrics are throughput, transaction speed, system availability, information accuracy, and web traffic and response time. Effectiveness IT metrics are determined according to an organization’s goals, strategies and objectives such as usability, customer satisfaction, conversion rates and financial. Conclusion, efficiency and effectiveness of IT metrics are required for a company to move more smoothly in line with the technology.
CASE STUDY APPLE
Apple is an America Corporation that designs and sells computers and related software. iPods have been invented when people are about to forget Apple, where there are no new inventions from Apple for past 20 years. If top executives of Apple had not supported investments in iPods, the only thing that would happen is people used to forget Apple and use same old techniques of downloading MP3 from different sites.
FORMULATE OF STRATEGIES TO IMPROVE ITS BUSINESS
EFFICIENCY IT METRICS
The idea of iTunes and build a tiny system for what was basically mini computer, along with a user interface that could sort and navigate music files with the same sort as iTunes on the Mac. The iPod was born nine months later.
2. Transaction Speed
An online store needed for music to buy, then started and idea of e-business infrastructure to support store to buy and pay bills online. Immediately after 18 months of launching iPod, iTunes store opened for business. The company’s goal was to sell 1 million songs in the first six months. It hit this goal in six days. The product has transformed Apple from only one computer maker into leading providing of digital media.
3. System Availability
Available in every Apple stores. The latest iPod packs music, audiobooks, podcasts, photos, video, contacts, calendars, games, clocks, and locks in a design up to 45% slimmer than the original iPod. It also a great personality and a touch of genius.
EFFECTIVENESS IT METRICS
1. Customer Satisfaction
Measured by such benchmarks as a satisfaction surveys, percentage of existing customer retained and increased revenue dollars per customer.
2. Conversion Rates
the number of customers shows interest for the first time and persuades to purchase its products.
Return on investment, cost analysis, and break-even analysis are calculated perfectly.