Indicators

In business intelligence and data analytics, indicators are like the vital signs for a business’s health. They are data points that companies track to measure performance and progress. Think of them as the dashboard lights in a car that tell you if the engine’s in good shape or if the gas is running low. In the business world, indicators provide insights about how well different parts of the company are doing.

There are two main types of indicators: Key Performance Indicators (KPIs) and Performance Indicators (PIs). KPIs are the super important metrics linked directly to business goals. For example, for an online store, a KPI might be the number of sales per month. PIs, on the other hand, might track more specific operational aspects like the number of customer service calls answered within a minute. These indicators help decision-makers understand what’s working well and what needs tweaking to achieve their business objectives.

By carefully selecting and monitoring the right indicators, businesses can make smart moves based on real data, not just hunches. This focus on evidence helps companies refine their strategies, improve their operations, and ultimately drive success. It’s like having a finger on the pulse of the business, constantly checking to make sure everything is beating just right.