Podcast
Questions and Answers
A scorecard must include as many indicators as possible to provide complete information.
A scorecard must include as many indicators as possible to provide complete information.
False
Benchmarks allow for the comparison of control objects that are not similarly measured.
Benchmarks allow for the comparison of control objects that are not similarly measured.
False
The principal can ensure the agent's alignment with objectives through corrective actions and monitoring.
The principal can ensure the agent's alignment with objectives through corrective actions and monitoring.
True
A scorecard helps management control target-oriented processes.
A scorecard helps management control target-oriented processes.
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Average duration from initiation to completion of tickets is an irrelevant metric in ICT environments.
Average duration from initiation to completion of tickets is an irrelevant metric in ICT environments.
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Performance management in the area of E-Commerce is considered unimportant in ICT organizations.
Performance management in the area of E-Commerce is considered unimportant in ICT organizations.
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Scorecards are designed to be used actively and periodically by management.
Scorecards are designed to be used actively and periodically by management.
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An ICT service is exclusively delivered by an external service provider.
An ICT service is exclusively delivered by an external service provider.
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The number of registered tickets is not a useful scorecard indicator.
The number of registered tickets is not a useful scorecard indicator.
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The scorecards for different ICT services are always identical.
The scorecards for different ICT services are always identical.
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ICT processes should not be confused with business processes.
ICT processes should not be confused with business processes.
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Different types of ICT processes will utilize the same specific scorecard.
Different types of ICT processes will utilize the same specific scorecard.
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An ICT system is defined as just hardware, having no software components.
An ICT system is defined as just hardware, having no software components.
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ICT projects can include building new services or improving existing ones.
ICT projects can include building new services or improving existing ones.
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Management is responsible only for managing individual ICT services, processes, and projects.
Management is responsible only for managing individual ICT services, processes, and projects.
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A service portfolio is also referred to as a service catalog.
A service portfolio is also referred to as a service catalog.
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E-Commerce systems have clearly defined boundaries compared to traditional application systems.
E-Commerce systems have clearly defined boundaries compared to traditional application systems.
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The internal ICT department is the only service provider for managing E-Commerce systems.
The internal ICT department is the only service provider for managing E-Commerce systems.
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Cost unit accounting is a tool from cost accounting used in performance management.
Cost unit accounting is a tool from cost accounting used in performance management.
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E-Commerce management takes full responsibility for hardware and software.
E-Commerce management takes full responsibility for hardware and software.
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A service is defined as a means to deliver value to customers by facilitating outcomes without specific costs and risks.
A service is defined as a means to deliver value to customers by facilitating outcomes without specific costs and risks.
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The output of an E-Commerce system can be measured in quantity.
The output of an E-Commerce system can be measured in quantity.
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E-Commerce is solely an ICT activity.
E-Commerce is solely an ICT activity.
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Service-oriented architectures (SOA) are unrelated to various system services.
Service-oriented architectures (SOA) are unrelated to various system services.
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Service Utility refers to how well the service is delivered and its fitness for use.
Service Utility refers to how well the service is delivered and its fitness for use.
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Web performance management (WPM) focuses on the planning, analysis, and control of all activities related to E-Commerce.
Web performance management (WPM) focuses on the planning, analysis, and control of all activities related to E-Commerce.
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In traditional shops, it is possible to monitor customer behavior in the same detailed way as online stores.
In traditional shops, it is possible to monitor customer behavior in the same detailed way as online stores.
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A Service Level Agreement must include basic information such as partners and start and end dates.
A Service Level Agreement must include basic information such as partners and start and end dates.
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Web analytics provide limited opportunities for analyzing website usage compared to traditional marketing methods.
Web analytics provide limited opportunities for analyzing website usage compared to traditional marketing methods.
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Web content performance management (WCPM) focuses exclusively on the analysis of visitor properties.
Web content performance management (WCPM) focuses exclusively on the analysis of visitor properties.
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The Prosumer rate refers to the portion of users who are both producers and consumers.
The Prosumer rate refers to the portion of users who are both producers and consumers.
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The only benefit of using web analytics is to optimize profit.
The only benefit of using web analytics is to optimize profit.
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Managing the realized service levels is a key challenge in performance management.
Managing the realized service levels is a key challenge in performance management.
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A clickmap displays how often specific links on a website are clicked, but does not record clicks on unlinked text.
A clickmap displays how often specific links on a website are clicked, but does not record clicks on unlinked text.
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User identification with cookies is primarily meant for identifying transaction events between communicating programs.
User identification with cookies is primarily meant for identifying transaction events between communicating programs.
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Privacy protection of potential customers is not a concern when conducting web analytics.
Privacy protection of potential customers is not a concern when conducting web analytics.
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Heatmaps are less useful than clickmaps for determining user behavior on a website.
Heatmaps are less useful than clickmaps for determining user behavior on a website.
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The term 'Slipperiness' in web analytics relates to the ability to retain visitors on a website.
The term 'Slipperiness' in web analytics relates to the ability to retain visitors on a website.
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Top management must determine who is authorized to provide ICT services within the organization.
Top management must determine who is authorized to provide ICT services within the organization.
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The performance of E-Commerce is solely dependent on the physical sales made by the organization.
The performance of E-Commerce is solely dependent on the physical sales made by the organization.
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Recency is defined as the time since the last purchase made by a visitor.
Recency is defined as the time since the last purchase made by a visitor.
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In E-Commerce, most users are typically known to the organization since they are registered users.
In E-Commerce, most users are typically known to the organization since they are registered users.
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The click price for 1,000 contacts reflects the costs of customer service interactions.
The click price for 1,000 contacts reflects the costs of customer service interactions.
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E-Commerce projects often involve several project sponsors from different organizations.
E-Commerce projects often involve several project sponsors from different organizations.
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The performance of online shops can be measured using the same methods as traditional ICT systems.
The performance of online shops can be measured using the same methods as traditional ICT systems.
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Top management's role includes ensuring the short-term gains of the organization without considering ICT risks.
Top management's role includes ensuring the short-term gains of the organization without considering ICT risks.
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Specific metrics and KPI proposals for performance management can only be found through online platforms.
Specific metrics and KPI proposals for performance management can only be found through online platforms.
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Users of an organization’s ICT system can be easily managed due to their known identities.
Users of an organization’s ICT system can be easily managed due to their known identities.
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Study Notes
Performance Management Overview
- Performance management is a discipline in Germany called "controlling," while in other English-speaking countries, it's called "performance management" or "performance analysis."
- Controlling involves making decisions and supporting managers in decision-making.
ICT Performance Management
- ICT performance management covers basic terms, KPIs and scorecards, key control objects in the ICT area, performance measurement, and web analytics.
- Scorecards are structured indicators related to each other, giving a complete overview of control objects.
- For scorecards, use a manageable number of indicators (e.g., 20).
- Scorecards need to be actively and periodically used, fed with planned and actual values, concentrating on relevant attributes for target achievement.
Control Cycle
- An agent/manager takes responsibility for specific tasks or control objects (e.g., a project, or a process).
- The agent is often an expert in the area or task, or the principal lacks the time or resources to do so.
- A contract will be negotiated to outline the responsibilities and reimbursement for the agent's work.
- The principal (client/customer) needs to ensure the agent works in their best interest.
Control Objects in the ICT Area
- The ICT area includes various control objects such as ICT services, ICT processes, ICT systems, ICT projects, and portfolios of the above-mentioned objects.
- Elementary objects (ICT services) will be controlled with a service-level agreement (SLA).
- ICT processes are internal or external ICT service provider controlled processes.
- ICT systems (hardware and software) are also specific control objects.
- ICT projects are designed to build or improve ICT services, processes, or systems.
Portfolio Objects
- ICT organizations manage groups of elementary control objects. For instance, process, service, system, and project portfolios.
- Specific portfolios are controlled by unique scorecards (e.g., service portfolio scorecard, process portfolio scorecard, system portfolio scorecard, project portfolio scorecard).
Cross-Section Control Objects
- Cross-section control objects are not covered by services, processes, systems, or projects; examples include ICT resources (personnel, infrastructure), and GRC management (Governance, Risk, Compliance).
IT Roles in E-commerce
- IT Demand: This is the responsibility of the ICT customer/consumer who plans and communicates needs and efficiently uses the ICT Services.
- IT Supply: This is the responsibility of the internal or external ICT service provider who creates service offerings and provides ICT services effectively and efficiently.
- IT Governance: Top management establishes rules (e.g., who can provide, or consume, ICT services). They ensure the organization's long-term survival considering ICT chances and risks.
E-commerce Performance Management
- Different challenges exist for E-commerce projects compared to traditional ones. These include:
- Multiple project sponsors possibly from across different organizations and legal entities.
- Interlinked projects (programmes) that can be part of a wider effort (e.g., online shop development).
- A mix of off-the-shelf software and custom-built components.
Systems Performance
- After projects end, organizations transfer the new or modified systems to daily operation either by internal or external ICT service providers.
E-commerce System Challenges
- Systems aren't precisely defined like traditional applications.
- E-commerce systems frequently use general infrastructure and middleware components.
- SOA-style architectures (service oriented architecture) allow services potentially used across systems.
- Clear regulations need to be followed for using external services.
Tools and Metrics
- Performance management uses tools from cost accounting, including cost unit accounting and cost distribution sheets.
- Internal service charges need to be considered, along with appropriate measurement of output quantity.
Web Analytics
- Web analytics enables detailed tracking of activities on digitized systems (e.g., online shops, websites) and delivers many opportunities to quantitatively measure, analyze, and manage activities.
- Potential Benefits of web analytics include optimizing management decisions, website optimization, SEO optimization, online marketing, sales process optimization (billing and complaints), customer relationships, profit optimization, gaining competitive advantage.
Web Analytics Categories
- Web Performance Management (WPM): Planning, analysis, and control of website and E-commerce activities.
- Web Content Performance Management (WCPM): Analysis of content usage (demand) for website offering optimization.
- Web User Performance Management (WUPM): Analysis of visitor properties and behavior to optimize visitor, customer focus, exploitation, development, and loyalty.
Web Analytics and KPIs
- Website targets are key to web analytics. KPIs and metrics show target achievement degrees.
- Examples of KPIs are stickiness, slipperiness, recency, prosumer rate, and integrator rate.
Website Metrics
- Clickmaps: Visual representation of website link clicks.
- Heatmaps: Visual representation of general website user clicks (including unlinked areas)
- Cookie definition: Tokens or packets of data for identifying events/transactions.
Service Management
- E-commerce is within the responsibility of sales and marketing, but not an ICT activity.
- Companies don't handle hardware/software, but outsource these to specialized providers.
- Service principles include value proposition (facilitating outcomes, without risk or ownership), and value composition (Service Utility, functionality for customer perspective; Service Warranty, meeting agreed-upon requirements).
- Service levels require clear agreements and defined responsibilities between customers, users, and providers/partners.
Service Level Agreements (SLAs)
- SLAs should include basic information, signatures from partners, agreement summaries and descriptions, scope and limits of the agreement, start date and end date, due dates, reviews (timing and parties involved), and escalation procedures (contact point for support).
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Description
This quiz covers the essential concepts of performance management, including controlling as practiced in Germany and its relevance in decision-making. It also delves into ICT performance management, detailing key performance indicators (KPIs), scorecards, and control cycles. Test your understanding of these important aspects in assessing organizational performance.
