"Key Performance Indicators (KPIs) and KPI Systems" are tools of controlling used to measure, analyze, and manage the performance and success of a company or organization. They serve to collect relevant data, structure it, and transform it into understandable information to help monitor business processes, make decisions, and pursue strategic objectives. A KPI system consists of a set of indicators that reflect various aspects of a company's performance and are interrelated to provide a comprehensive picture of business development.
Typical functions of software in the "KPIs and KPI Systems" area are:
Data aggregation and integration: Capturing and consolidating data from various sources and systems to generate uniform and consistent indicators.
KPI creation and customization: Ability to define and customize KPIs according to the specific requirements and goals of the company.
Visualization and reporting: Presentation of KPIs and performance indicators in the form of graphics, charts, and reports to make them easily understandable and interpretable.
Monitoring and alerting functions: Automated monitoring of KPIs and setting up alerts or notifications to indicate deviations or important events.
Analysis and interpretation: Analysis tools and functions for interpreting KPIs to identify trends, pinpoint causes of performance changes, and derive recommendations.
Benchmarking and comparison: Ability to compare the company's performance indicators with industry standards, historical data, or competitors to identify strengths, weaknesses, and improvement potentials.
Planning and goal setting: Integration of KPIs into the company's strategic planning and goal setting to define performance objectives and track progress.