Business Intelligence and KPIs- What and Why to Measure?

Realizing that you can only improve what you measure is a good way to think about business KPIs. The KPIs in business intelligence are usually around major business areas like finance and marketing metrics. KPIs also encompass specific areas like retail and project management metrics. 

Often organizations want to improve varied aspects of their business processes all at once. KPIs or key performance indicators are quite crucial to the enterprise. Furthermore, nearly every organization is talking about them nowadays. 

But at the same time, there are many organizations that don’t know how to define the right KPIs. With power BI KPI, you would be able to increase the overall efficiency of your business processes. 

Defining your KPIs

Selecting the appropriate KPI is important to implement effective and data-driven decisions. In this ever-evolving business world, it is imperative to measure and define the right KPIs for growth. By defining the right KPI, you would be able to concentrate the efforts of employees towards the right goal. 

If you want to assess the effectiveness of your marketing channels, you need to identify more than one end goal. This usually includes click-through rates and conversion numbers. Looking at all these factors will assist you in determining which channels will drive the most revenue and traffic. 

To establish meaningful KPIs, you need to determine what correlates with your brand’s objectives. Let’s consider these below-mentioned examples to understand the notion of meaningful KPIs. 

  • Marketing 

Some meaningful KPIs of marketing are customer acquisition cost, percentage of leads generated, etc. 

  • Retail 

In retail, the key KPIs are inventory turnover and sell-through percentages. 

  • Healthcare 

Some important KPIs in the healthcare sector is the average stay length of the patients, successful treatment rate, etc. 

  • Finance 

Operating cash flow, working capital, inventory turnover, etc., are some of the key KPIs of finance. 

Go for Fewer KPIs 

Once you select the important KPIs, try to break them down further. When the context is about analyzing KPIs, less is always a preferable option. This is because if you assess too many KPIs, you may start to lose your audience. 

Always remember that the point of a KPI is to gain focus and align goals for improvement. It is imperative to spend time selecting the right KPIs. For the analysis of KPI, a company needs to assess the data carefully. 

For instance, by analyzing power BI KPI, you would be able to augment business growth. You will need to answer the following questions before proceeding with data analysis of KPIs. 

  • What are the sources of data?
  • What tools do you require to manage and analyse the data from KPIs?
  • Is it important to predict the complexity of the data model?

Due to complications associated with data analysis, many companies are outsourcing their requirements to professional data analysis companies. 

Enterprise DNA will be your apt choice if you want to learn more about Power BI. You will be able to get a sharp focus on practical business applications.