What are the best practices for visualizing and presenting your KPI dashboard data?

In #Web3 specifically, since the space is fairly new, KPIs are still in the process of being defined. However, the principles of Web2 analytics are applicable when building a strategy for the most part, and the focus should be on metrics across acquisition, retention, and monetization. These three categories are lagging indicators that provide valuable insights into how effectively a Web3 product (related to #Cryptocurrency, #Blockchain, #NFT or the #Metaverse) reaches new customers, retains its user base, and monetizes its features!

What are Key Performance Indicators and why use them? KPI’s align business operations with organizational goals. Ensure that metrics do not replace the company’s mission, vision and values. A balanced scorecard exercise can help with planning performance targets to guide your focus towards meaningful measurements. Understanding these KPI Categories: 1. Strategic Indicators, 2. Operational Indicators, 3. Functional Indicators, 4. Leading/Lagging Indicators. https://bit.ly/4481ih1 New technologies can assist with reducing excessive KPI’s and identifying metrics that yield real performance. Review situations where AI can determine the best KPI’s to use for a specific result. https://bit.ly/3Pgf4d0 #SupplyChain #metrics

In my view, this is the most important step as having the wrong KPIs can lead to unwanted consequences. The other aspect to consider is to develop a common approach that identify how these KPIs are going to be measured and reported. Having a consistent approach is key in particular if we are dealing with z large size business with many divisions and departments.

Conventional KPIs compare standard goals with the actual outcome. In management review meetings, if KPI controller failed to meet the targets, he comes out and makes a defense like he is in court. If he met the targets, then he sees the top management taking hats off. This over reactive structure is nothing but defense and attack. Instead, it would be much better for the companies to discuss the future-looking KPIs. For example, discussion of how the capacity utilization will look like in the next period or how the inventory will be holding up. Goals for the next 3 months can be determined in one meeting, and what realized can be evaluated in the next one. That makes KPIs future-oriented rather than the past, constructive and participatory.

Having visibility to KPIs is great. But an actionable dashboard is the best way for someone to know what needs attention. This allows for a larger number of KPIs. An actionable dashboard presents a visually effective means to see KPIs that are below or above target. Predictive analytics and trend analysis should also be used to for preventative issues as well as potential new opportunities.

While calculating what realized, first reference point will be ERP. However, regular structure of ERP is insufficient. For example, how long the inventory on hand will last, cannot be computed using just the basic information from the ERP. Supply chain tools are needed for more complex calculations such as demand forecasting accuracy or capacity utilization rate. Manual calculations of the KPIs will cause the risk of “sweeping under the rug”. Excel calculations must be audited regularly by an independent unit, or there must be a tool to make those KPI calculations for you. SC Tower concept can be considered accordingly. Tower must be calculating the KPI results and be sharing the critical parts with you.

While revealing KPI results, trend analyses must be unquestionably done by the software. For example, when we draw by hand how the trend is progressing on a graph created from our data, we see that our expectations are directly proportional to the slope of this line. If we wish to see a rising trend out of this fuzzy data set, then the trend line acts like it. Instead, a spreadsheet program (Excel) would apply a regression analyses, which helps to get the most realistic result. Applying a multi-dimensional regression would be much better, because it would be unfair to reduce the company’s performance to just a straight line. An analysis showing ups and downs would rather allow us to reach more realistic consequences.

The Agile Dashboard is a KPI dashboard where a manager or executive and see within seconds as to where attention needs to be paid. It should be highly customizable to focus on your business area.

It will be perfect for us to take the stage with more than one scenario for the KPIs, of which we could plan midterm and long-term results. For example, while preparing revenue reports, imagine working with two different scenarios that consider current capacity and and extra investment respectively, and revealing the possible results. Next period’s KPI indicators are clarified through the scenario confirmed by the top management and the other shareholders. Teams in charge prepare operational plans depending on those KPIs determined based on the current conditions, and take the responsibility for realizing these plans.