Business Performance Metrics

Key Performance Indicators (KPIs)

• KPIs signify a strategic business goal or objective and measure success in achieving that goal

Business Metrics

• Metrics track the performance of specific business processes

Defining and Measuring KPIs

• Identify critical aspects of the business
• Set realistic targets
• Monitor KPIs effectively

Types of Data Analytics

Descriptive Analytics

• Analyzes historical and current data to spot trends and relationships
• Helps understand "What happened?"

Diagnostic Analytics

• Identifies the reason an event occurred
• Helps discover hidden correlations and connections between variables
• Determines causal relationships, detects anomalies, and isolates patterns
• Answers "Why did this happen?"

Predictive Analytics

• Makes predictions about future outcomes
• Relies on historical data and employs statistical modeling and data mining techniques
• Answers "What might happen in the future?"

Prescriptive Analytics

• Employs data optimization, simulation, and decision analysis to recommend the optimal course of action
• Draws inputs from descriptive, diagnostic, and predictive analytics
• Guides on "What you should do next"

Challenges in Implementing Business Intelligence (BI)

• Data inconsistencies
• Security breaches
• Compliance issues
• Finding the right software
• Resistance to change
• Identifying relevant KPIs

Overcoming Challenges

• Align BI strategy with clear goals and objectives
• Invest in data governance and quality management
• Foster a culture of data-driven decision-making