Key performance indicators (KPIs) are measurable values that help organizations understand how well they are performing against their strategic goals. In the context of business intelligence (BI), KPIs are critical metrics that provide insights into the effectiveness of an organization's operations, processes, and performance.

Figure 1. Power BI KPI [1]

Figure 1 shows Power BI KPI. Some common KPIs used in BI:

Revenue: Revenue is a critical KPI for any organization. It measures the amount of money generated through sales and provides insights into the overall health of the business.

Customer satisfaction: Customer satisfaction is a KPI that measures how well an organization is meeting the needs and expectations of its customers.

Sales growth: Sales growth measures the rate at which an organization's sales are increasing over time.

Profit margin: Profit margin is a KPI that measures the amount of profit generated by an organization relative to its revenue.

Return on investment (ROI): ROI measures the return on investment for a specific project or initiative. It helps organizations understand whether their investments are generating the desired returns.

Customer retention: Customer retention measures the number of customers who continue to do business with an organization over time.

Employee satisfaction: Employee satisfaction measures the level of satisfaction and engagement among an organization's employees.

Inventory turnover: Inventory turnover measures how quickly an organization's inventory is being sold and replenished.

Website traffic: Website traffic measures the number of visitors to an organization's website.

Time to market: Time to market measures the time it takes for an organization to launch a new product or service.

These are just a few examples of KPIs used in BI. The specific KPIs used will vary depending on the organization's goals, industry, and other factors. It is essential to identify and track the KPIs that matter most to the organization and align them with its overall strategy and objectives.

References:

1. https://www.wallstreetmojo.com/power-bi-kpi/

Cite this article:

Hana M (2023), Key performance indicators (KPIs), AnaTechmaz, pp.53