KARAN BHANOT

C -71

Business Intelligence Assignment 1

1. KPI A key performance indicator (KPI) is a quantifiable value that a company or

business uses to measure how efficiently a business is achieving its most important
objectives.
Example A KPI for a B-School might be the percentage of students placed in a
batch
2. BUSINESS METRIC A business metric is a quantified tool used to track and assess
the status of a specific process. It differs from KPI as in it measures all areas whereas
KPIs only focus on specific indicators.
Example Current ratio in an organization measures the ability of the firm to pay off
short term debts.
3. BALANCE SCORECARD It is a performance measurement system which focuses
on 4 clear areas namely finance, learning, customer and business process.
Example A firm cannot prosper only by concentrating on its financials, it has to
keep in view the customer perspective, processes such as cost check, production
check and also the learning and development needs of its employees.
4. DASHBOARDS A tool which visually shows the performance of an entity or a
specific function by sending clear and non-confusing picture of the performance.
Example Dashboards are prevalent in every organization as a measurable tool to
measure performance, even different departments such as marketing, finance and HR
have their own separate dashboards.
5. PROCESS & PROCESS MAPS It is a sequence of interdependent tasks or
procedures which leads to a particular desired result.
Example The controlling process in an organization starts with the task of setting
standards and concludes with measurement of performance with the set standards.
PROCESS MAPS The representation of a process as a workflow through a diagram
is called as process mapping.
Example Use of Swim lanes to distinguish various job responsibilities in a process
flow
6. SYSTEM The interaction of interdependent activities in order to complete a specific
task is called a system.
Example Any organization. There may be different departments in an entity, but
they all interact to achieve a common objective.

7. SIPOC It provides a framework to define and evaluate a process from beginning to

end.
Example In case of mobile repair, the Supplier may be the mobile owner, the Input
will be the repair inquiry, the Process will involve diagnosis of the problem, the
Output will include notification of repair and finally Customer will be notified.
8. 5 Ms M1an, Machine, Money, Material and Mother Nature are considered to be the
5Ms of management. Man represents the physical workforce, Money equates
finances, Machine is the technology, Material represents the basic ingredient and
Mother Nature is the environment.
9. QUALITY A state of being defect free or the benchmark of excellence is known as
quality.
10. DATABASE It is a storage tool from where information can be retrieved, updated
and modified according to need.
Example A school attendance register is a database from where student attendance
records can be retrieved.
DSS A computer based program that supports and analyses business data and
presents it to users to enable them making decisions. It is widely used in organizations
and helps managers to facilitate accurate decision making.
11. SOX The Sarbanes Oxley Act 2002 is a legislation passed by the US government to
safeguard the rights of stakeholders in business organizations and to facilitate proper
and accurate disclosures. It was passed in view of huge governance scams such as
Enron (2001) and WorldCom (2002) to protect investor interest.