With the correct metrics in place information can be gathered and reported on in order to form knowledge. Data is raw numbers, information is data with context, and knowledge is the information with understanding, which leads to decisions (Hunter Whitney, 2007). Basing decisions on every metric is a waste of resources and time. As a result, Key Performance Indicators (KPIs) distill the vast amount of data into information that is pertinent to the decision making. Some KPIs could be the items per hour, visitors per day, customer retention rate, conversion rate, etc. However, not all companies need to know all of the indicators, that is why KPIs are based on the business model and needs of the company.
How these metrics are viewed can also shed
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additional light on the patterns and meanings behind them. Motion Charts for example according to Ledford, are “not well-suited to all reports; however, for reports like New vs. Returning, you can use a motion chart to get a clear picture of the trends that multiple dimensions might indicate.” (Ledford, Teixeira, & Tyler, 2010, pg6). For any report, it’s important to understand what information the data is showing in order to understand the knowledge it is offering. Not all information is needed in the real-time basis that a motion chart offers. Sometimes historical data is more appropriate to the business needs. Therefore, a real-time model is offering too much data with information that is not pertinent. When creating a tool for reporting it is often too easy to focus on the power and abilities offered rather than ensuring they align with the KPIs and business. This introduces another challenge: building a tool that is appropriate, not just more powerful. This is what led to Kaushik describing what he calls the “10/90 Rule” (pg16). The cost of the analytics tool should cost $10 for every $90 spent on the “intelligence resources” (aka people). Kaushik described four basic problems: Most web analytic tools regurgitate large amounts of data. Qualitative and quantitative data must be accounted for and the most powerful tools to turn information into insights are the people. According to Kaushik analysts should ask a few questions before attempting to implement a new tool (Kaushik, 2010, pg17-21). Almost all companies say they want Analytics, but in some cases, Reporting is all they need. The company culture and the decision-making structure may lend itself to simply require reports, meaning that spending more resources (read: money, time, etc.) on a more robust analytical tool may not be a best fit for the company needs Some companies are good at the technology portion of the decision-making – data collection, new technologies – while others are most business driven offering better insights into the analysis and strategic decisions by ingesting the information rather than gathering it in the first place.
External partners will build the IT infrastructure for those with weak IT, while a weak Business acumen will benefit from consultants who can provide the Business insights needed.
Finally, you have to know what you are solving. If the new tool is simply to provide the basic click-stream information and that is appropriate, but if further Web Analytics is needed then qualitative and quantitative information gathering is needed in order to make customer-influencing decision-making.
When implemented correctly a Web Analytics tool offers more than just data or information, it can offer knowledge and insights. One can analyze the effect of a new background color, the effectiveness of a marketing campaign, the emotional impact of positive vs negative news feeds (Vindu Goel, June 9th 2014), or the effects of dynamic pricing based on demographic and personal visitor data insights (Greg Petro, April 17th 2015). With the correct data and information we can make the insights needed not just to know what has happened, but to influence events. As Kaushik said, “We’ve evolved from hits to page view to visits. Now, we have Outcomes.” (Kaushik, 2010,
pg36).
Metrics are very important in Operations Management within an organization because it provides functions such as control, reporting, communication, opportunities for improvement and expectations. It is a certifiable measure stated in either quantitative or qualitative terms types of measurements. In addition, metrics has different types of categories in the organizations. One of which is “Organizational Focus”, that have four different types of level within the organization or firm. 1. Organizational Metrics – this type of measure, capture and describe the performance of an organization (i.e.…market share and rate of return). 2. Product Metric – it measures cost per unit, contribution margin per unit, or growth in sales.
Kristy May, the company’s CEO and the individual who will be leading the project, estimates that the probability of implementation is 99% (K. May, personal communication, September 23, 2016). Google Analytics is a free and easily accessible tool (Warner, 2015). Therefore, the only costs associated with the project will be the time required to understand and implement a well designed Analytics Program (Warner, 2015). May believes the opportunity costs associated with her time is well worth the potential payoff for the company (K. May, personal communication, September 23, 2016).
The assignment research objectives were (a) to gain insight into securing strategic partnerships in the information technology (IT) arena; (b) to understand the choices made to reduce information and security risks by exploring the different outsourcing techniques, and; (c) to understand how business process associated with outsourcing will stimulate awareness on how the process is interlinked with human behaviors. The topics covered include an evaluation of the specifications of information security consultants to become strategic partners assisting in the reduction of information or security risks, an examination of four factors that were omitted in the specifications that add value to the selection process, and an explanation of the value of the four factors.
Marketing Analytics is another concept that is very essential for your business or company. It comprises of all the technologies and process that would allow you to evaluate the performance of your marketing campaigns and initiatives.
It is given, if we open most web analytics tool, they show the exact same metrics, almost all of them measured and computed differently. So we have to sort this issue.
These obstacles include the wholesomeness of the data, analytical knowledge, an understanding of statistics, and several other philosophical and educational challenges. Gathering the data is usually half the battle in the analytics game. The data collected could include social networking information, sales lists, real estate listings, product lists, and product reviews and can be gathered into structured storage and analyzed. The gathered data proves to be a valuable resource for businesses that look to analytics in order to enhance their market
The BrightGauge Software case study, in turn, shows that the company understood the importance of tracking customer behavior, but was not using the right tools. As Paine (2011) notes, “Even the most sophisticated measurement tool is worthless if it can’t measure progress toward your goal” (p. 46). HubSpot assisted the company with not just the tools in this specific case, but with determining how to create processes that were repeatable so they could be measured. According to Paine (2011), “Because you become what you measure, it is critical to carefully choose the metrics by which you will track your success” (p.
The fact that so many businesses vary on what they examine the most crucial KPIs, makes it that much more problematic to characterize what they are. In short, a KPI is a part charged on important financial and non-financial business clue that gives an expression of profit or loss for the business.
Companies have transformed technology from a supporting tool into a strategic weapon.”(Davenport, 2006) In business research, technology has become an essential means that many organizations use in their daily operations. According to the article, Analytics is a major technological tool used. It is described as “the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions."(Davenport, 2006) Data is compiled to enhance business practices. When samples are taken, they are used to examine research and understand how to solve problems or why situations are as they are. Furthermore, in this article, Thomas Davenport discusses analytics from a business standpoint. He refers to organizations that have been successful in their usage of data and statistical analysis. In addition, he also discusses how data and statistics can be vital in the efforts to improve the operations of businesses.
These benefits are best discovered and maximized if used in conjunction with KPIs. A KPI is a key performance indicator and they allow a company to measure and manage ...
For Key Performance Indicators (KPI) to be successful, it needs to have the following characteristics:
Establishing metrics is crucial to any organization, especially in technology related company projects. Metrics can be defined as a system of parameters or ways of quantitative and periodic assess of a process that is to be measured, along with procedures to carry out such measurement and the procedures for the interpretation of the assessment in the light of previous or comparable assessments. The results of the metrics can be used to record trends, efficiency, capital, and etcetera. Metrics permit organizations to measure its performance against industry sectors to determine how well the company is doing. Metrics allow organizations to optimize its productivity.
The limitation for implementing Web Analytics ecosystem in the Organizations can be quite murky as the visitor interaction and their preferences change quickly overtime. Moreover, Web data provides little information about the user than their clicking patterns. An example would be- why a particular visitor of a website did not end up becoming its customer. Web Administrators must use Web Analytics to monitor and determine what pages are not working well or rather understand which pages or areas within the site do not attract traffic. They can alternately tweak and modify the site to create good user experience. Regularly monitoring customers’ traffic would enable organizations understand their customers better and enhances their overall performance. Therefore there is the need to design their websites
Customer Relationship Management (CRM) is another field where A.I. is used. There is no doubt that the internet has changed the way that businesses and corporations interact with their customers, and A.I. helps by offering a myriad of data about the customersuch as their demographics and purchasing history. A.I. offers analytics in real-time, greatly benefitting the company as it works to improve its marketing and ultimately its profits.
According to Kaushik, A. (2010), Web Analytics helps businesses answers questions like what, why, how much, what are the competitive intelligence data. We would be able to figure out what types of visitors, visits, Time on site, Page Views, Bounce Rate, Sources et al. Web Analytics would help us determine how much the website has caused an increase in revenue, cost reduction and customer satisfaction. Web Analytics helps us with experimentation and testing. Overall, Web Analytics helps businesses perform against competition and identify new opportunities.