ERP data is integrated, comprehensive if not complete and real-time. It is therefore possible to have timely, actionable and accurate insights and predictions for operational, tactical and strategic decision-making. Operational excellence can be monitored with the trends and patterns of key performance indicators like revenue, operating margin, inventory turnover, customer churn and manufacturing cycle time.

Couple of things I ve found helpful: + Over simplify the KPI and forget about finding the most accurate one. The "best financial KPI" gets lost into the lack of finance expertise outside of the finance department + Ensure alignment between the KPI and the company business objectives + Ensure people's performance management framework aligns to the KPI - what gets rewarded gets repeated + Limit the number of KPI to what truly matters : profit & cash + Remember that what gets measured gets done

start by aligning them with your organization's strategic goals. Focus on key areas that directly impact business performance, like financial health, operational efficiency, customer satisfaction, and growth. Prioritize KPIs that are measurable, actionable, and relevant to stakeholders. Use SMART criteria—Specific, Measurable, Achievable, Relevant, Time-bound—to define each KPI. Collaborate with key departments to understand their needs and pain points. Regularly review and refine KPIs to adapt to evolving business conditions and ensure they drive informed decisions.

To choose the right KPIs from overwhelming ERP data, focus on what truly impacts your business goals. For example, in a retail company, identify key areas like sales growth, inventory turnover and customer satisfaction. Engage stakeholders from different departments to ensure the selected KPIs reflect their needs and priorities. Limit the number of KPIs to avoid confusion - typically, 5 to 7 key metrics are sufficient. This targeted approach will simplify your decision-making process and provide clear insights into performance.

Drowning in ERP data can feel like trying to drink from a firehose—there’s plenty to go around, but good luck making sense of it all. To choose the right KPIs and avoid the data deluge, start by narrowing your focus to what really moves the needle. Identify the core metrics that align with your strategic goals—whether it’s efficiency, cost control, or customer satisfaction. Think of KPIs as the compass, not the map—don’t get bogged down in every single data point. Prioritize actionable insights that drive decision-making, not just interesting stats. In the end, it’s not about having more data—it’s about having the right data to steer the ship.