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Exhibit 2  Examples of Metrics
USEFUL YARDSTICKS
Inputs Performance measures
Corporate strategy Number of IT projects in the strategic plan
Corporate structure Level of empowerment to strategic business unit and functional managers
Corporate systems Percentage of business processes documented and measured
Resources Dollars available for IT staff training and development
External environment Number of potential threats relating to IT from external environment
Processes Performance measures
Leadership Percentage of senior executives’ time dedicated to IT
Creation and execution of appropriate IT strategies Availability and planning for IT security features
Planned cost of disruption of IT initiatives
Planned cost of risk related to IT projects
Designing and implementation of a proper IT structure Percentage of IT expenses related to outsourcing
Number of IT applications not fully integrated into the overall IT system
Development and implementation of appropriate IT systems Number of IT professionals per employee
Dollars invested in IT skills and knowledge
Percentage of staff with pay-for-performance compensation
Percentage of projects’ evaluations based on ROI metrics
Internal outputs Performance measures
Increased productivity Percentage increase in production output per employee
Dollar increase in sales based on productivity improvements
Time savings Reduction in online response time
Increased capacity utilization Fixed costs per unit of capacity
Percentage of utilization of databases
Improved quality Dollars saved on prevention and appraisal cost of quality
Direct IT cost savings Percentage reduction in mandatory IT expenses
External outputs Performance measures
Channel optimization Dollar value of activities completed through Web sites
Hours of annual Web site downtime
Customer acquisition Number of new customers gained through IT innovation
Sales from new customers
Customer loyalty Sales from retained customers vs. new customers
Added value Average customer profitability
Outcomes Performance measures
Long-term financial success Percentage change in company stock price attributable to IT initiatives
ROI
Short-term financial success Cash-flow growth
Percentage of overall cost reduction