Corporate Performance Management Solutions Brief
Applications of Industrial-Strength Business IntelligenceKey Performance Indicators (KPIs)
Key Performance Indicators (KPIs) are metrics--financial and non-financial--used by companies to monitor and assess performance. KPIs are aligned with the measurement of business performance against a company’s strategic goals. Indicators vary from company to company and are usually defined by company stakeholders. As a business progresses towards its strategic goals, its success is measured through the movement of its KPIs.
Successful KPIs are SMART:
- Specific – pertaining to the goal of the organization
- Measurable – for the organization to assess its progress
- Achievable – realistic in terms of the business environment
- Relevant – directly linking the business and metrics
- Time-Bound – placing goal achievement in a certain time frame.
Key Performance Indicators are used by executives, analysts, IT professionals and business users for business activity monitoring, performance measurement, and any form of performance management. In addition to being aligned with strategic company goals, they also adhere to the company’s business and organizational goals and objectives.
MicroStrategy provides sophisticated statistical software for KPI creation
MicroStrategy’s Business Intelligence platform monitors company performance and enables users to model, build, report and analyze Key Performance Indicators. With more than 250 statistical, mathematical and analytical functions available in the software, companies are empowered to design and deploy business-specific Key Performance Indicators.
KPIs can be displayed on visually appealing dashboards and scorecards; these rich graphical interfaces quickly convey company performance to executives and business users alike. KPI-rich dynamic dashboards and scorecards can be proactively delivered to users online or via email. These Dashboards can be customized at the user level, or formatted adhering to recognized performance measurement theories (for example, The Balanced Scorecard Methodology, or Six Sigma Dashboards). In addition to corporate KPIs, companies can build department-level and business unit-level KPIs with ease.
MicroStrategy provides out-of-the-box KPIs in the BI Developer Kit (BIDK). As part of these entirely pre-built BI applications, companies can access and use pre-built KPI metrics, significantly reducing application development time.
Each pre-packaged BIDK application is designed for a different aspect of the business, for example:
- The ‘Customer Analysis’ module includes KPIs to help the marketing function of a company measure the performance of its customer satisfaction scores or monitor the lifetime value of its customers.
- The ‘Financial Analysis’ module allows a company to utilize pre-packaged KPIs pertaining to Accounts receivable, Accounts payable etc.
MicroStrategy reporting and analysis software provides a wide range of capabilities to design KPIs and deliver and analyze them on visually appealing, performance-driven dashboards, scorecards and reports.