Sunday January 21st 2018

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Metrics and Key Performance Indicators

Metrics is a direct numerical measure of business data in the light of one or more dimensions. For example total sale by week, in that case the sale will be a metric and week is dimension. Key Performance Indicators (KPI): is metric that is related to target. KPI represents how far a metric is above or below a pre-determined target.

Key Performance Indicators are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. They varies from department to department.

For example Marketing Department may have the KPI percentage of market share in certain region and comparison with market research reports which must show how the company is performing in the market.