Essential Steps of the Key Performance Indicators Cycle
Business intelligence (BI) is an activity, tool, or process that allows businesses to create clarity and support around their decision-making approach by determining key performance indicators (KPIs). The success level of any business endeavor can almost be measured or quantified in some aspect:
Step 1: Build or define the core business strategy or objectives
Step 2: Specify progress metrics (KPI’s), and define thresholds that indicate degrees of success.
Step 3: Measure performance over time as a baseline
Step 4: Adjust tactics and gauge correlative changes in success metrics
Step 5: Apply lessons to subsequent strategy definition
But business intelligence is very much a cultural phenomenon, moving away from gut-feel strategic choices and moving toward an evidence-driven rational approach to business.