Monday, November 16, 2009

Business Value - Performance Metrics (2)

If Delloite defines various aspects of Shareholders value that can be increased, however to measure it we also need its metrics. Gartnerin this Research provides what they call as The Gartner Business Value Model. This model helps a business to align Business Metrics with business aspects. The Business Value Model provides metrics that we use for several dimension. While this discussion doesn't compare in detail each value in Delloite's table with each metrics however we can see a coorelation between the two models, which always link to business.


Gartner defines three business aspects i.e.
  • Demand Management - which consist of Market and Sales Responsiveness, Product Development Effectiveness, which much related to revenue growth and operating margin
  • Supply Management - which consist of customer and supplier effectiveness, and operational effiency
  • Support Management - this aspect consist of Human Resources, IT and Finance & Regulatory Reponsiveness.
So using these two maps - we are much help to be more structure to understand how the business is measured and how actually each of them able give value to shareholders.

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