Business Intelligence Glossary Hossein Moradi hsmoradigmail com IT

Business Intelligence Glossary Hossein Moradi hsmoradi@gmail. com IT Expert. ir December 2008

The problem domain “I have several piles of data, and I want to get some value out of them IT Expert. ir 3

BUSINESS INTELLIGENCE VS. PERFORMANCE MANAGEMENT BI is about delivering information while PM is about acting on that information BI delivers the information necessary for people to monitor their business and make decisions on how to run it IT Expert. ir 4

Scorecard • A scorecard is a small, direct application – that tracks a collection of key performance indicators (KPIs), – and shows current actual values – and target values, – and a score for the KPI • Scorecards are strategic - they show long-term values, goals, and trends • Data in a scorecard should not be the type of data you would want to see in real time, but rather data that you monitor on a weekly or even monthly basis IT Expert. ir 5

Scorecard IT Expert. ir 6

THE BALANCED SCORECARD • It is a special case of scorecard called a balanced scorecard • It was created by Robert Kaplan and David Norton in 1992 • Their goal was to pull the focus of management off the balance sheet (profit/loss) and pay attention to those factors outside finance that are indicative of the health of the company. • To do this, they created what they called perspectives to aggregate KPIs and/or objectives (collections of KPIs). IT Expert. ir 7

balanced Scorecard Goal It is to identify factors that are critical to the success of a business (and that will affect profit and loss down the line) before they become critical problems IT Expert. ir 8

four perspectives in a balanced scorecard Financial: Standard profit-and-loss type data Customer: Measures indicative of customer satisfaction Internal business processes: The health of the company’s processes Learning and growth: Primarily focused on employee quality and satisfaction IT Expert. ir 9

Strategy Maps • They were created by Robert Kaplan and David Norton while working on balanced scorecard implementations • Strategy maps are designed to link a company’s highlevel goals (perspectives, in balanced scorecard parlance) to the KPIs that measure how the company is performing on the measures that drive the business • A strategy map shows how KPIs relate to objectives and then to perspectives IT Expert. ir 10

IT Expert. ir 11

Key Performance Indicators A KPI is where the business meets the data While a scorecard can have perspectives and objectives as business drivers, the actual metrics- the KPIs- are going to be data driven IT Expert. ir 12

KPI must be SMART Some examples of good KPIs include customer attrition cost of acquiring a customer employee retention percent of late deliveries average wait times, and revenue growth IT Expert. ir 13

Dashboard A dashboard is more tactical This is where you’ll see your near-real-time data You’ll want charts and graphs that show data changing over hours, and how the data interrelates IT Expert. ir 14

Dashboard IT Expert. ir 15

Dashboard Vs. Scorecard A dashboard in a car shows real-time data: oil pressure, speed, RPMs, and so on; while a GPS display and maintenance record are similar to a scorecard showing where you’ve been and the long-term trends of your performance IT Expert. ir 16

Dashboard Vs. Scorecard IT Expert. ir 17

Thanks IT Expert. ir hsmoradi@ gmail. com