“If it cannot be measured, it cannot be managed” – Peter Drucker.
Key Performance Indicators (KPI) have turned out to be the best mechanism to measure and manage business – be it any geography, industry or domain. It is a known fact that garnering success without measurement of activities isn’t feasible at all. Even when it comes to matching up with organizational goals, comparing with peer business stakeholders, having new clients, retaining old ones and much more, the best way to ensure achieving the optimum level is to extract the KPIs relevant to the organization, its goals, its requirements and its customer history.
When it comes to measuring performance and achievements, related with one of the power packed technologies today – Business Intelligence Services, defining best possible KPIs and measuring relative business analytical information is the optimal way to ensure a successful run of the same. Business Intelligence has proven to be a power booster to trending domains like Fintech, proving its mettle with its data analytics and visually appealing dashboards / reports. And hence, with vital performance indicator areas, identification and extraction of the best of KPIs is an essential ingredient in the success of the multiple activities related to BI solutions. No doubt, depending upon the domain and area of expertise, the key performance indicators that need to be measured to ensure an up and running BI setup may differ and change accordingly. But if your commitment is very much towards an insightful decision based solution, getting the most accurate KPIs is a must. If your output is well defined, coming up the most accurate set of KPIs becomes a tad easier as compared to having an aimless path to define the same.
5 Core Steps to Help Define Most Accurate KPIs for a BI Solution
How to know what to measure? As is, getting performance related information at the right time and strengthening the business with latest technologies like Predictive Analytics, Self Service BI, Cloud BI etc., is the motto of any Business Intelligence Service zone. But, with a proper definition of KPIs, it is very easy to achieve that task with productivity and profitability. Here are 5 Useful Steps that will surely help define how best to measure indicators and get the best of results for any Business Intelligence Service.
- Evaluate Major Business Objectives with a Top-down Approach
BI solutions have the power to seamlessly drill down in details, one lever after the other. You can witness a pool of well-defined information as your go ahead. Hence, what is most important is to understand and analyze the prime business objectives at each level of hierarchy. Starting from the top, moving one level down, what measure and metrics would be best utilizable to garner best of business intelligence is what marks the crux of the success story. In parallel, you can separate the gray areas that you feel, could hamper the developmental progress of the entire business and correspondingly, find out ways and means to sort them out.
- Start from a Few KPIs and Then Segregate Further
It all starts from the business objectives that have been jotted down. They form the primary KPIs on the wholesome level, but for sure, are not at a measurable level. And so, the very first task is to break down the objectives further in measurable performance indicators, but that too, at a very top level and a few of them. It is possible to achieve a number of KPIs right from the start but that leads to a lesser focus on the main objectives and you may tend to get away with the basic purpose with which you have started off. Hence, firstly, pen down the first few important indicators and then move on one level further to expand vertically and drill down further. Depending upon the industry and target audience, get the first few important ones in place and then move on, so that the focus on achieving success remains intact.
- Analyze your Available Information with a Measurable Tact
You know what a large sea of information you already have. Here comes the toughest part – once your key elements are identified, start analyzing the data that is available in terms of its measurability and authenticity. Not all data is measurable or accurate and that is where you need to find out the relevant information based on the key objectives and then drill down further to find out further KPIs so that the line of focus does not change at all and at no point, there is entry of unwanted or unauthentic information into the scenario. With the usage of the latest tools and methods, you need to undergo a perfect data modeling procedure with proper facts, tables and metrics. Your BI solution needs to be competent enough to grab and grasp the most useful indicators from the heavy bulk of information available.
- Associate your KPIs with BI Dashboard / Reports Precisely
Identification of the real KPIs is one big task. Once done with that, what is most important for any Business Intelligence Service area is representation of the same on the output generated, which is an amalgamation of dashboards and reports, each representing the information in its individualistic way. It is of prime significance that the KPIs match perfectly with these reports only then, we can say that the BI solution is following its KPIs to the core.
- Look for Value Addition in the Information Pool with Help of KPIs
In the huge pool of information that any business has, you do cull out the best possible information that you need, based on the visually appealing dashboards and reports in the solution. But, the value addition that the KPIs provide is to extract that valuable information which usually is hidden behind other parameters and is not available on the front face. Such rare information surely helps enterprises go a step further than the others and gives our solution an extra value.
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