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	<title>Newest Industry &#187; Quality of Service</title>
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		<title>Why Web Measurements? Part III: Business Operations</title>
		<link>http://newestindustry.org/2008/12/05/why-web-measurements-part-iii-business-operations/</link>
		<comments>http://newestindustry.org/2008/12/05/why-web-measurements-part-iii-business-operations/#comments</comments>
		<pubDate>Fri, 05 Dec 2008 16:42:31 +0000</pubDate>
		<dc:creator>smp</dc:creator>
				<category><![CDATA[The Web]]></category>
		<category><![CDATA[Web Performance]]></category>
		<category><![CDATA[WebPerformance.Org]]></category>
		<category><![CDATA[Work]]></category>
		<category><![CDATA[baselining]]></category>
		<category><![CDATA[benchmarking]]></category>
		<category><![CDATA[business leaders]]></category>
		<category><![CDATA[business operations]]></category>
		<category><![CDATA[comparative metrics]]></category>
		<category><![CDATA[correlation]]></category>
		<category><![CDATA[Jean Campbell]]></category>
		<category><![CDATA[Key performance indicator]]></category>
		<category><![CDATA[KPI]]></category>
		<category><![CDATA[line of business]]></category>
		<category><![CDATA[online]]></category>
		<category><![CDATA[Performance management]]></category>
		<category><![CDATA[performance measurement]]></category>
		<category><![CDATA[Quality of Service]]></category>
		<category><![CDATA[senior management]]></category>
		<category><![CDATA[SLA]]></category>
		<category><![CDATA[SLO]]></category>
		<category><![CDATA[Web analytics]]></category>
		<category><![CDATA[Web measurement data]]></category>
		<category><![CDATA[Web performance measurements]]></category>
		<category><![CDATA[Web performance ties]]></category>
		<category><![CDATA[Web service]]></category>
		<category><![CDATA[Web systems]]></category>

		<guid isPermaLink="false">http://newestindustry.org/?p=2232</guid>
		<description><![CDATA[
			
				
			
		
In the Customer Generation and Customer Retention articles of this series, the focus was on Web performance measurements designed to serve an audience outside of your organization. Starting with Business Operations, the focus shifts toward the use of Web performance measurements inside your organization.
Why Business Operations?
When I was initially developing these ideas with my colleague [...]]]></description>
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<p>In the <a href="http://newestindustry.org/2008/12/01/why-web-measurement-part-i-customer-generation/" target="_blank">Customer Generation</a> and <a href="http://newestindustry.org/2008/12/02/why-web-measurements-part-ii-customer-retention/" target="_blank">Customer Retention</a> articles of this series, the focus was on Web performance measurements designed to serve an audience outside of your organization. Starting with <em>Business Operations</em>, the focus shifts toward the use of Web performance measurements inside your organization.</p>
<h3>Why Business Operations?</h3>
<p>When I was initially developing these ideas with my colleague <a title="Twitter - Jean Campbell" href="http://twitter.com/jccampbell" target="_blank">Jean Campbell</a>, the idea was to call this section <em>Reporting and Quality of Service</em>. What we found was that this didn&#8217;t completely encompass all of the ideas that fall under these measurements. The question became: which part of the organization do reporting and QoS measurements serve?</p>
<p>What was clear was these were the metrics that reported on the health of the Web service to management and the company as a whole. This was the measurement data that the line of business tied to revenue and analytics data to get a true picture of the health of the online business.</p>
<h3>What are you measuring?</h3>
<p>Measurements for business operations need to capture the key metrics that are critical for making informed business decisions.</p>
<ul>
<li>How do we compare to our competitors?</li>
<li>Are we close to breaching our SLAs?</li>
<li>Are the third-parties we use close to breaching their SLAs?</li>
<li>What parts of the site affect performance / user experience the most so we can set priorities?</li>
<li>How does Web performance correlate with all the other data we use in our online business?</li>
</ul>
<p>Every company will use different measures to capture this information, and correlate the data in different ways. The key is that you do use it to understand how Web performance ties into the line of business.</p>
<h3>How often do I look at it?</h3>
<p>Well, honestly, most people who work in business operations only need to examine Web performance once a day in a summary business KPI report (your company has a useful daily KPI report that everyone understands and uses, right?), and in greater detail at weekly and monthly management meetings.</p>
<p>The goal of the people examining business operations data is not to solve the technical problems that are being encountered, but to understand how the performance of their site affects the general business health of the company, and how it plays in the competitive marketplace.</p>
<h3>What metrics do I need?</h3>
<p>Business operations teams need to understand</p>
<ul>
<li>End-to-end response time for measured business processes</li>
<li>Page-level response times for measured business processes</li>
<li>Success rate of the transaction during the measurement period</li>
<li>How third-parties are affecting performance</li>
<li>How Web analytics and Web performance relate</li>
<li>How different regions are affected by performance</li>
<li>How does performance look from the customer ISPs and desktops</li>
</ul>
<p>Detailed technical data is lost on these people. It is their role to take all of the data they have, and present a picture of the application as it affects the business, and discuss challenges that they face at a technical level in terms of how they affect the business.</p>
<h3>Summary</h3>
<p>For people who work at an extremely detailed level with Web measurement data (the topic for the next part of this series), Business Operations metrics seem light, fluffy, and often meaningless. But these metrics serve a distinct audience: the people who run the company. Frankly, if the senior business leaders at an organization are worried on a daily basis about the minute technical details taht go into troubleshooting and diagnosing performance issues, I would be concerned.</p>
<p>The objective of Business Operations measurements is to convey the health of the Web systems that support the business, and correlate that health with other KPIs used by the management team.</p>



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		</item>
		<item>
		<title>Why Web Measurements? Part II: Customer Retention</title>
		<link>http://newestindustry.org/2008/12/02/why-web-measurements-part-ii-customer-retention/</link>
		<comments>http://newestindustry.org/2008/12/02/why-web-measurements-part-ii-customer-retention/#comments</comments>
		<pubDate>Tue, 02 Dec 2008 14:00:06 +0000</pubDate>
		<dc:creator>smp</dc:creator>
				<category><![CDATA[The Web]]></category>
		<category><![CDATA[Web Performance]]></category>
		<category><![CDATA[WebPerformance.Org]]></category>
		<category><![CDATA[Work]]></category>
		<category><![CDATA[Customer Retention]]></category>
		<category><![CDATA[Quality of Service]]></category>
		<category><![CDATA[Tweet]]></category>
		<category><![CDATA[United States]]></category>
		<category><![CDATA[Web connections]]></category>
		<category><![CDATA[Web performance advantages]]></category>
		<category><![CDATA[Web performance commandos]]></category>
		<category><![CDATA[web performance data]]></category>
		<category><![CDATA[Web performance insanity]]></category>
		<category><![CDATA[Web performance measurement]]></category>
		<category><![CDATA[Web performance measurements]]></category>
		<category><![CDATA[Web performance professional]]></category>
		<category><![CDATA[Web performance world]]></category>
		<category><![CDATA[Web world]]></category>

		<guid isPermaLink="false">http://newestindustry.org/?p=2230</guid>
		<description><![CDATA[
			
				
			
		
In the first part of this series, using Web performance measurements to generate new customers was the topic. This article focuses on using the same data to keep the customers you have, and make them believe in the value of your service.
Proving the Point
Getting a customer is the exciting and glamorous work. Resources are often [...]]]></description>
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<p>In the <a title="Newest Industry - Why Web Measurements? Customer Retention" href="http://newestindustry.org/2008/12/01/why-web-measurement-part-i-customer-generation/" target="_blank">first part of this series</a>, using Web performance measurements to generate new customers was the topic. This article focuses on using the same data to keep the customers you have, and make them believe in the value of your service.</p>
<h3>Proving the Point</h3>
<p>Getting a customer is the exciting and glamorous work. Resources are often drawn from far and wide in an organization to win over a prospect and make them a customer.</p>
<p>Once the deal is done, the day-to-day business of making the customer believe that they are getting what they paid for is the job of the ongoing benchmarking measurements. CDNs and third-party services need to prove that they are delivering the goods, and this can only be done by an agreed upon measurement metric.</p>
<p>Some people leap right into an SLA / SLO discussion. As a Web performance professional, I can tell you that there are few SLAs that are effective, and ever fewer that are enforceable.</p>
<p>Start with what you can prove. Was the performance that was shown me during the pre-sales process a fluke, or does it represent the true level of service that I am getting for my money?</p>
<h3>Measure Often and Everywhere</h3>
<p>The Web performance world has become addicted to the relatively clean and predictable measurements that originate from high-quality backbone measurement locations. This perspective can provide an slightly unrealistic view of the Web world.</p>
<p>How many times have you heard from the people around you about site X (maybe this is your site) behaving badly or unpredictably from home connections? Why, when you examine the Web performance data from the backbone, doesn&#8217;t this show up?</p>
<p>Web connections to the home are unpredicatble, unregulated, and have no QoS target. It is definitely best effort. This is especially true in the US, where there is no incentive (some would say that there is a barrier) to delivering the best quality performance to the home. But that is where the money is.</p>
<p>As a service provider, you better be willing to show that your service is able to surmount the obstacles and deliver Web performance advantages at the Last Mile and the Backbone.</p>
<p>Don&#8217;t <em>ever</em> base SLAs on Last Mile data &#8211; this is Web performance insanity. But be ready to prove that you can deliver high quality performance everywhere.</p>
<h3>Show me the data</h3>
<p>As a customer of your service, I expect you to show me the measurement that you&#8217;re are collecting. I expect you to be honest with me when you encounter a problem. I do not want to hear/see your finger-pointing, especially when you try and push the blame for any performance issues back to me.</p>
<p>As a service provider, you live and die by the Web performance data. And if you see something in the data, not related to your business, but that could make my site faster and better, tell me about it.</p>
<p>Remember that partnership you sold me on during the Customer Generation phase? Show it to me now. If you help me get better, this will be added to plus column on the decision chart at renewal time, when your competitor comes knocking on my door with a lower price and Web performance data that shows how much you suck.</p>
<h3>Shit Happens. Fess up.</h3>
<p>The beauty of Web performance measurement is that your customers can replicate exactly the same measurements that you run on their behalf. And, they may actually measure things that you hadn&#8217;t thought about.</p>
<p>And sure as shooting, they will show up at a meeting with your team one day with data that shows that your service <em>FUBAR</em>&#8216;d on a massive scale.</p>
<p>It&#8217;s the Internet. Bad shit happens on the Internet. I&#8217;ve seen it.</p>
<p>If you can show them that you know about the problem, explain what caused it, how you resolved it, and how you are working to prevent it, good.</p>
<p>Better: Call them when the shit happens. Let them know that you know about the problem and that you have a crack team of Web performance commandos deployed worldwide to resolve the problem in non-relativistic time. Blog it. Tweet it. Put a big &#8216;ol email in their inbox. Call your pimary contact, and your secondary contact, and your tertiary contact.</p>
<p>Fess up. You can only hide so much before your customers start talking. And the last thing your want prospects seeing is your existing customers talking smack about your service.</p>
<h3>Summary</h3>
<p>Web performance measurement doesn&#8217;t go away the second you close the deal. In fact, the process has only just begun. It is a crazy, competitive world out there. Be prepared to show that you&#8217;re the best and that you aren&#8217;t perfect every single day.</p>



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