Assessing KPI and scorecard

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Scorecards are more often linked with metrics that works on a specific rule and the result is calculated on the basis of specific formula. Scorecards are easy to compare and set benchmarks. For example, scorecards are reviewed to check the level service against competitors and the customer satisfaction levels and then help an organization to overcome the week areas. But here a major problem arise i.e. “what are the metrics used to compare against competitor?” To overcome such problems, a balance scorecard is also referred as “KPI”. KPI stands for key performance indicator (or sometime key performance index). They indicators are not anything apart for metrics but the difference is in the term “key” which defines the metrics. The key helps you measure the performance of your objective or goal and to set a benchmark.

The both technologies are metrics based, but when it comes to global view the scorecard is a better technology. For instance, if you want to compare your customer oriented services, you need to specify several metrics which will cover the different aspects of customer vision over the services they get. And these metrics will give estimation on the service quality provided by the organization. And finally these results are used to prepare the final report on the performance of an organization.

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