e-Business ROI Metrics

Finance and Administration

• number of late payments
• time to respond to customers requests
• number of billing errors
• number of incorrect accounting entries
• number of payroll errors
• number of errors per line of code
• number of reports received later than scheduled
• number of incorrect order entries
• document publishing expenses
• reduction in cash-to-cash cycle time (average number of days that it takes for cash to flow back into the company after it is spent on raw materials)
• cash-to-cash cycle time

Design, Development, and Engineering

Measure the percent change in:

• project completion cycle times
• number of engineering changes per design document
• number of errors detected during design reviews/evaluations
• number of days to process engineering change notices
• manufacturing process quality improvement
• cycle time for operations planning

Purchasing

Measure the percent change in:

• administrative side of costs for purchasing materials and goods
• product side of costs for procuring materials and goods (through better information on competitive offerings)
• purchase order errors
• supply chain response time

Asset management

Measure the percent change in:

• downtime due to shortages
• cycle time (from start of purchase to receipt in-house)
• reduction in coverage days for inventory (average number of days until total inventory is sold)
• improvement in inventory turnover
• inventory carrying costs
• days/weeks inventory

Manufacturing/production/operations (quality control)

Measure the percent change in:

• lots rejected in error
• number of engineering change detected after design review
• errors in reports
• cycle time for corrective action
• delivery times and order reworks
• order rework
• days lead time
• cycle time for manufacturing
• manufacturing cost
• production flexibility

Customer Satisfaction Levels (e.g., qualitative five-point scale)

Measure the percent change in:

• customer self service log-ins per month
• customer satisfaction levels on a qualitative scale
• cost per customer transaction as sales volume grows
• warranty cost or returns processing cost

Ordering, Shipping and Deployment

Measure the percent change in:

• order fulfilment lead time
• number of orders placed through automated Internet system
• distribution costs
• number of customer self-service answers to routine questions via Internet
• technical support calls answered by customers themselves through access to data base or through Web diagnostic tools
• transportation costs
• delivery performance
• generating realtime shipment status reports on demand
• transportation forecasting accuracy

Human resources

Measure the percent change in:

• recruiting costs
• number of resumes submitted electronically through company Web site
• costs to process resumes submitted
• value-added productivity

Sales

Measure the percent change in:

• sales order-to-cash cycle time (days, dollars)
• lead time for sales order fulfilment (days)
• sales order management costs (dollars)
• invoice generation time (days)
• sales revenue
• sales margins
• accuracy of sales forecast