Enterprise Metrics in Business Essay

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In our introduction we say that virtually all organizations or businesses have to put in place measurement standards that act like scorecards to give the performance standards s of the business or enterprise. There are three basic metrics for a company, metrics of operation, and finance and product Operational one deals with the standards of operation while the products metrics are measurements associated with company’s products. Finance metrics deal with the measurements taken in accordance with financial dealing and transactions of the company. All these are what we call enterprise metrics.Metrics are applied to tell the pace at which a company in any industry is progressing. Therefore consistent and appropriate measurements have to be applied in all the branches of the industry for a balanced quantification. Julia (2002) puts that research has shown that automated metrics management often offer easily interpreted tracking of the industry’s performance. Automated analytic tools like CASE Tools have provided the best introspection to the managerial team on the company’s performance. In handling enterprise metrics, there are a number of factors that have to be put in place. First there has to be a consistent framework of the essential metrics, even visibility of the metrics, moving target for the metrics and interpretation of data interrelationships.

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Associated with enterprise metrics are factors such as: Technical Performance, Return on Investment (ROI) and Business or Mission Assurance.

Technical Performance is a measurement to any business system and is used to locate system errors and deficiencies and if necessary it provides alerts on the encountered system problems. It is used in the monitoring of those risks that are technical. The measurement is used in what is referred to as Technical Performance Measurement(TPM).It is recommended that several TPMs be performed so as to maintain proper tracking of the derived system requirements ,a step that ensures well managed technical progress. TPM contains tolerance levels, shows the recommended variations towards the targeted estimated error. Return on Investment (ROI) is an evaluation method concerned with the construction of businesses cases.

Julia(2002says that it is a decisive process ensuring that evaluation of the organization is done by making comparisons to the overall timings for the profits of the business to the level of enormity of profits. It is always advisable that in a business system, steps to perk up ROI are made by ensuring a reduction in the costs thus acceleration to the total gains.

Business or Mission Assurance is concerned with the employment of systems so as accelerate effectiveness in operations of a business organization and improvement in risk management. It is a way of quantification of an enterprise. Julia (2002) says that it acts as a way of bridging the breach in management and the business organization. Blixrud (2003) says that this measure also ensures the reflection of the overall plan of quality, security and the total safety standards so as to monitor their delivery of the designed benefits. In general Business Assurance’s focus is on the management of the risks and the provision of audit so as to offer a means to hasten the management process. Its main focus is on the business processes and not the systems.

It gives the managerial an assurance that risk management processes within the organization are maintained at reasonable levels and that an able team is set in place to counter the cases of risk management and that adequate resources are allocated to cater for this. The assurance standard should not be tied to the customary conformity examination of basis financial and transaction systems. Blixrud (2003) argues that the main goal of business assurance is to monitor the achievements in economy and the overall effectiveness in the operational, functional, transaction and the financial components of an organization and the provision of the steps of management. It is thus a continuous process in an organization.

References

  1. Blixrud, J. (2003). Mainstreaming New Measures.3rd Ed. New York. Touchstone.
  2. Julia, M. (2002). Measures for Electronic Use: The Metrics Project. 2nd Ed, Loughborough.
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IvyPanda. 2021. "Enterprise Metrics in Business." October 15, 2021. https://ivypanda.com/essays/enterprise-metrics-in-business/.

1. IvyPanda. "Enterprise Metrics in Business." October 15, 2021. https://ivypanda.com/essays/enterprise-metrics-in-business/.


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IvyPanda. "Enterprise Metrics in Business." October 15, 2021. https://ivypanda.com/essays/enterprise-metrics-in-business/.

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