Chapter 10: Need for a
System Management –
KPI
Chapter Index
S. Referenc Particulars Slide
No. e No. From - To
1 Learning Objectives 3
2 Topic 1 Need for a System Manag 4-6
ement
3 Topic 2 Data Quality 7-10
4 Topic 3 Business Metrics 11-12
5 Topic 4 Key Performance Indicator 13-16
s (KPIs)
6 Let’s Sum Up 17
Learning Objectives
Describe the need of system management
Explain the data quality
Describe the business metrics
Elucidate the KPIs and their types
1. Need for a System Management
System management signifies the management of Information
Technology (IT) assets of an organization in a centralized manner.
The system management is an umbrella term which includes a lot of
management solutions.
The management solutions help an organization in enhancing the
productivity of IT assets and its employees.
The management solutions help an organization in developing the
new software solutions efficiently and also upgrade the existing
software.
For example, in order to keep the systems in the running condition,
an organization uses management solutions, such as service desk
management, patch management, etc.
1. Need for a System Management
System management solutions also help an organization in
protecting it against the following:
Fallout from downtime or threats caused due to
improper functioning of the systems
Lost or stolen devices
Sabotage in network
Power outages
Security breaches
Identity theft
Errors due to human actions
Natural or man-made disasters
1. Need for a System Management
The following figure shows the various system management
solutions:
2. Data Quality
The quality of data is extremely important for an organization.
The bad-quality data provides inaccurate results and makes the
decision-making process slower in an organization. Therefore,
improvement in the data quality is of utmost importance for an
organization in order to take the accurate decisions. The
clearing out of bad data from the available data helps in its
improvement.
The organizational data is mainly stored in a data warehouse.
The business intelligence solutions are used by the
organizations to access the data from the data warehouse to
gain better insight of their business at any point of time. The
data accessed must be of good quality to make faster decisions
by the executives of an organization.
2. Data Quality
The data quality issue might arise because of the following
reasons:
Due to patchwork between enterprise applications and
operational systems.
Due to scattered or misplaced values in the data
Due to outdated and duplicate records in the data
Due to inconsistent (or undefined) standards and
formats in the stored data
Due to merger or acquisition of the data
Due to human error while entering, editing, maintaining,
manipulating and reporting of the data
2. Data Quality
The data quality dimensions are used by the organizations to
measure the level of accuracy of the data from time to time. The
following figure shows the key dimensions of the data quality:
2. Data Quality
The description of key dimensions of the data quality are as
follows:
1. Completeness: Completeness of the data refers to the meeting
of expectations of the executives of an organization.
2. Consistency: Consistency of the data means that it must reflect
the same type of information across all the systems or units of an
organization.
3. Conformity: Conformity of the data means that the same set of
standards have been followed for entering the data.
4. Accuracy: Accuracy of the data reflects the degree of correctness
of the data entered in the database.
5. Integrity: Integrity of data means that the data entered in the
database must have relationships or are connected appropriately.
3. Business Metrics
A business metric is defined as a quantifiable measure that is used
by an organization for tracking, monitoring and assessing the
success or failure of its business process.
The main purpose behind the measurement of business objectives is
to track an organization’s financial expenses or investments made.
The business metrics also help an organization in judging its
progress towards the set short term or long-term goals.
The business metrics are very important for the key stakeholders of
business. The key stakeholders are those people whose input plays a
significant role in an organization.
The business metrics are stated by an organization in its mission
statements which are nothing but organizational communication
with its customers and general public.
3. Business Metrics
The following figure shows some important business metrics which
are as follows:
4. Key Performance Indicators (KPIs)
KPIs are very helpful for an organization or its department,
team and executives in order to take remedial steps before
the happening of events that may lead to huge financial loss
to an organization.
KPIs are used to define targets throughout the business for
meeting the strategic objectives.
KPIs also help an organization in focusing over common
objectives and ensure that they remain aligned in the
organization. Therefore, it is very important for an
organization to decide what it wants to measure exactly
before using KPIs.
4. Key Performance Indicators (KPIs)
Types of KPIs
The following figure shows some types of KPIs across different business
functions in an organization:
IT operations and project execution KPIs
Project Management KPIs
Financial Performance KPIs
Human Resource Performance KPIs
Supply chain and operational
performance KPIs
Consumer insights and marketing KPIs
4. Key Performance Indicators (KPIs)
KPI Software
KPI software, also known as KPI solutions, is used to track the
performance evaluated by several KPIs on dashboards in real time.
Different KPI solutions provide different benefits to the organizations,
some of which are as follows:
Enable users, executives and organizations to measure and
handle targets and objectives.
Enable tracking of project performance and provide reporting
to the shareholders of the project.
Enable an organization to view transparency in performance at
any instant.
Help an organization in gaining competitive advantage over
others.
4. Key Performance Indicators (KPIs)
KPI Software
Some examples of popular KPI software are as follows:
1. Scoro KPI dashboard: The Scoro KPI dashboard software allows
an organization to see every aspect of its business on one or
several dashboards.
2. Datapine: It allows an organization to view and monitor most
significant KPIs at a single location.
3. Inetsoft dashboard: This is an analytical dashboard and
reporting software.
4. Tableau: It is the best solution for those organizations which
have clients with very few number of users and wish deployment of
solution in multiple organizations.
Let’s Sum Up
System management signifies the management of Information
Technology (IT) assets of an organization in a centralized manner.
The business intelligence solutions are used by the organizations
to access the data from the data warehouse to gain better
insight of their business at any point of time.
A business metric is defined as a quantifiable measure that is
used by an organization for tracking, monitoring and assessing
the success or failure of its business process.
The business metrics are very important for the key stakeholders
of business.
KPI software, also known as KPI solutions, is used to track the
performance evaluated by several KPIs on dashboards in real
time.
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