Analytics - (Performance) Metrics, key performance indicators (KPI)

> (OLAP|Analytic)

1 - Definition

A (performance) metric is an calculated and aggregated measure of activities of:

Metrics are numeric values.

A metric gives a way of quantitatively and periodically measuring, assessing, controlling or selecting.

It has standard unit such as :

  • meter or mile for length,
  • or gram or ton for weight,
  • or systems of measurement,

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3 - In Business Intelligence, Metrics or KPI ?

In a Business Intelligence context, metrics are often referred to as :

  • key performance indicators (KPI)
  • key quality indicators (KQI)

One difference that we can made between metrics and KPI is that:

  • a metric is a measure of business activity.
  • whereas the key performance indicator (KPI) are the most important and relevant metrics often associated with a target.

4 - Data Rule and Metrics

A data rule is like a metrics definition. It is an indicator, so you should create data rules that are important things to measure with regards to the business strategy (KPI), to the data quality (KQI), …

5 - Example

  • Roce
  • Roi
  • Customer loyalty
  • Profitability
  • Short and long term performance

to define action such as Investissement on:

  • new product
  • process
  • it
  • human
  • market
  • customer
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6 - Cobra effect when settings goals

You are exposed to the Cobra effect when you set objectives, and in particular when you choose indicators to measure the achievement of these objectives.

For example, if we choose to measure the effectiveness of customer support by looking at the number of telephone calls made, we encourage the employees who do the support to spend less time per call… and not to solve the problems that submitted to them by customers.

Cobra_effect

7 - Reference