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Metrics are a means of quantifying the characteristics of things like processes and products. Metrics define what is to be measured, how it is measured, the unit of measurement and the source of the data. Metrics must also be comparable to some control data, such as an industry benchmark or historical data.
The intelligence gathered from a well-planned and ongoing IT metrics program will help you understand which of your activities are performing and delivering value. This knowledge will enable you to reduce overall spending by identifying the most valuable IT projects and eliminating or improving those that are inefficient. Armed with hard numbers on its performance and value, IT can transform itself from a cost center to a strategic player in the enterprise. Studies show that organizations that employ IT metrics achieve greater competitive advantage.
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Competitive Advantage Gained from Projects Relative to the Use of Formal In-Project Performance Metrics
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6 tips for developing an effective IT metrics process:
- Get buy-in from stakeholders on what to measure
- Choose a few key metrics - don't try to measure everything
- Metrics is an ongoing project - don’t stop after getting initial results
- Include a few business metrics for IT initiatives
- Re-evaluate the metrics you are using every few months to ensure they are still useful
- When reporting on results, pay attention to the audience and tailor the information presented to its needs
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