Business Insights through Effective Weighted KPIs on Domo
Key Performance Indicators (KPIs) in any organisation are directly linked to its business goals. Closely monitoring the variables within KPIs alludes to the health of a business. It identifies the problem areas which can be assessed and targeted along with highlighting efficient areas which can continue to improve.
However, many organisations define their priorities and goals but fail to realise them as it is often difficult to track the abundant metrics contributing to the organisation’s performance. Additionally, different verticals in a business measure different KPIs which may not have a correlation between them.
Executive’s must focus on
- Developing a set of metrics that reflect the goals of the business. These metrics should be aligned with business objectives and KPIs within each relevant vertical/perspective.
- Developing indicators for company processes that measure drivers.
- Ensure that drivers enable performance and decisive calls to action.
From an Indicator to a Scorecard- Understanding Drivers
Measurables within each business vertical can help streamline the operations and processes within that silo. However, to gauge the overall health of a business and transition it from surviving to thriving - these measurables must be collated and presented alongside each other to provide direction to the business. This idea is popularised through Scorecards- easy on the go reports that summarise the KPIs for Executives.
KPIs are first normalized and then presented in a hierarchical structure that highlights their contribution to the performance of the goal/ business objective they are aligned to. The degree of contribution depends on the weight of the indicator. These are then rolled up to the highest order in the hierarchy where the scorecard index - Magic Score is calculated.
Ideally, KPIs should be measured in percentages, however, if it is not possible to standardise then a weight should be assigned to each potential result based on the KPI.
Hence, the best way to track performance is by identifying relevant KPIs and keeping track of them. Tracking KPIs can streamlined by associating them to the company’s goals and understanding how each KPI weighs into the success of said goal. If the variables within the KPI perform successfully, a business goal can be attained for a company. Likewise, if certain variables within the KPI fail, the company may fall short of its business goal.
Concept to Execution
Platforms like Domo enable executives to put their data to work. It’s cloud-native experience alleviates business pain points such as manual reporting, organizational silos and eradicates challenges of timely reporting by ensuring data and information is accessible in a secure way.
It’s data agnostic nature helps connect existing infrastructure within a business enterprise providing faster speed of reporting, scalability, security, performance overall business value- All at the tip of your fingertips!
Domo has the power to support every phase of BI and every type of user: Executives, Data Analysts, Marketing managers, Operations personnel etc.
Let’s look at how Domo delivers effective dashboards:
- Integration: Domo has more than 1000+ connectors which allow users to connect from anywhere including an organisations existing data infrastructure.
- Processing Speed: With powerful Magic ETLs it can perform complex transformations on the data. As it is built for the cloud- it leverages the speed and flexibility of the cloud by completing queries on large datasets within seconds.
- Dashboards and Scorecards: Domo includes tools to build on-demand business intelligence dashboards with little to no code. Beast Modes allow fast on the fly calculations making analytics accessible and interactive. Domo’s interface is built to be highly intuitive and easy to use- hence it allows for organisations to also build self-serving reports.
- Data Governance: Through Personalised Data Permissions, organisations are able to ensure that the right people have access to the right data enabling data literacy while maintaining security.
- Alerts and Scheduled Reports: Domo’s real time alerts enable Executives to take appropriate timely action to seize opportunities as well as turnaround adverse situations pre-emptively. Scheduled Reports/Scorecards are delivered in a timely manner making data reliable and easily accessible through mobile and email notifications. Domo’s App provides on the go analysis to business users adding value for time
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Our Recent Domo Implementation:
We leveraged the powerful features of Domo to deliver personalised dashboards to one of our customers in the Retail industry. The executives, marketing and operation heads had a need for speed when it came to their daily spends data. While the mid- hierarchy needed department specific KPI stats and details to run BAU, the executives needed their top management KPIs to understand and evaluate the health of the business.
Through Domo’s Cloud Amplifiers and Bi-directional connectors, we were able to leverage the computing power of Snowflake Data Cloud. By using Domo’s low-code Magic ETL we processed the data without migrating it out of Snowflake. Aggregated tables built on top of the most granular data made it possible for our experts to harness the speed and flexibility of cloud computing by querying large datasets within seconds.
The data, now ready to be utilised powered the daily scorecards sent out to the different departments by 8:00 AM each morning. This enabled the department heads to answer critical questions like how effective their marketing campaigns were or how much inventory they needed to plan for based on traffic and utilization. On the other hand, company executives received intuitive scorecards and alerts about the top performance KPIs which contributed to the organisations’ growth. A Weighted Magic Score demonstrated the health of the business making decision making quick and impactful.
By utilising Domo’s Beast Modes (on the fly calculations)- our executives could understand how different factors would affect their growth and how Company Owned and Franchisee owned Outlets were performing.
Personalised Data Permission based on Custom Roles limited the data accessible to the users based on authorization. This satisfied IT’s need for Data governance and delivered results in a secure way.
Domo’s intuitive platform empowered business users to create, share and highlight insights from quick self-serve reports after just a few basic demonstration sessions.
Users were able to devote their time towards creating an impact instead of spending hours trying to tally and create reports. The ease of reporting increased exponentially, and users now had a trustworthy single source of truth equipped to deliver reliable results within or before the desired timeframes.
Conclusion
Domo has the potential to act like a living breathing entity that connects data to people across systems, making it capable of becoming the operating hub of a business.
It delivers the power of real time alerts, shared workflows, bidirectional connectors that writeback to your systems and an ecosystem of enterprise apps designed to solve your specific business problems- freeing up members of your organisation to get creative and improve their overall impact and productivity instead of being stuck in a cycle of accessing and processing your data.
Customisable apps, alerts and scorecards empower your data to provide the insights you need to create a lasting impact for your business.
Checkout our Retail Insight Center – powered by Domo that enables Retailer to see their entire chain at a glance with detailed regional breakdowns and our revolutionary KPI - the 𝗠𝗮𝗴𝗶𝗰 𝗦𝗰𝗼𝗿𝗲.
