While some may use sophisticated BI software, it’s likely that a few managers manually log statistics. This is concerning.
A Fortune 500 bank. A car dealership. A grocery store. A landscaping firm.
How are these businesses related? They track key performance indicators. Every company, big or small, has KPIs, or benchmarks, it uses to help it determine whether it’s exceeding goals. KPIs for a Fortune 500 bank may include the number of newly opened checking accounts in a week. A car dealership will be interested in the number of vehicles sold in a given time period, a grocery store in sales per square foot and a landscaping firm in its quality of work.
Businesses can further divide these KPIs into narrower objectives, but they should only follow ones that can help them grow.
Companies Shouldn’t Manually Track KPIs
Every business establishes KPIs but they track data differently. While some may use sophisticated BI software, it’s likely that a few managers manually log statistics. This is concerning.
“Every business establishes KPIs but they track the data differently.”
Authors of “Trust Evaluation of Data Provenance,” who studied the integrity of data being used, noted that while it’s extremely important for departments to share information, distributing accurate data is just as essential.
“The availability of comprehensive data makes it possible to extract more accurate and complete knowledge and thus supports more informed decision making,” the authors stated. “However reliance on data for decision making processes requires data to be of good quality and trusted. We refer to such requirements as high-assurance data integrity. Without high-assurance integrity, information extracted from available data cannot be trusted.”
Simply put, if companies are still employing data entry teams, they’re increasing their operational risk. Managers hold the keys to an immense amount of information that can transform how organizations operate. When entered manually, leaders and their staff shuffle through and record countless statistics. Mistakes are bound to happen.
Use the Right Solution to Track KPIs
Businesses increase their operational risk if they use the wrong BI solutions to track KPIs. Unreliable systems can suddenly fail or report false data, and both can damage companies beyond repair.
Here’s an example of what can happen when a company fails to use a reliable solution to report and analyze its data:
- After analyzing what appeared to be accurate data, a company makes plans to expand into several locations along the East Coast of the U.S.
- Based on their message, investors purchase stock.
- Not long after, the company realizes they made a decision based on inaccurate data. They then have to retract their growth plans.
- The stock tumbles, and investors lose money.
- Consumer confidence in the company plummets, and investors are wary about purchasing future stock.
I think you get the point. From there, the company has a long road, and a few PR campaigns, to traverse and complete before it can fully recovers.
This Company Could Have Better Protected Itself
Our faux company could have avoided disaster if it was using SAP S/4HANA, edition for SAP Business All-in-On.
SAP S/4HANA, edition for SAP Business All-in-One is a state-of-the-art software that provides users with a personalized experience as they manage their small to medium-sized operations. This solution is tailor fit for 25 industries localized for 62 countries. In the system managers will have access to Big Data and be able to connect with colleagues or clients and devices in real time.
According to SAP, over 50,000 businesses in 150 countries rely on SAP for their analytical, reporting and streaming needs. This software is a robust BI solution unmatched on today’s market. Once deployed, managers can throw their manual spreadsheets and archaic BI systems away – after they transfer the data over to SAP of course. SAP stores information from every aspect of a company into one scalable system.
The time is now to upgrade
You can’t put your KPIs on hold. That’s the same as shutting down your business for awhile. Employees will continue to sell products and services to clients and data will continue to steam into your company. Because of this, the time is now to make the switch to SAP.