Business Intelligence with AI Quiz #1

business intelligence

a broad category of applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions and manage business performance

known and in the past

advanced analytics

sophisticated techniques and tools (more of ML, AI) to discover deeper insights, make predictions, or generate recommendations

unknown and used more to look into the future

advanced analytics

which is more unknown (and uses more ML & AI) - business intelligence or advanced analytics?

key performance indicator (KPI)

metric that demonstrates how effectively a business is at achieving a business objective

quantifiable

maturity curve

explains the raw data to advanced analytics pipeline

Raw data —> cleaned data —> standard reports —> ad hoc reports and OLAP —> self-service BI —> predictive analytics / ML —> prescriptive analytics —> autonomous systems

components of business intelligence

data sources —> data staging —> data analysis —> information delivery

dashboard

display of KPIs to achieve one or more objectives arranged on a specific screen

strategic dashboard

type of dashboard used by executives

provides a quick overview on the health of the business and reports on major high-level measures, such as KPIs

very simple, little information

analytical dashboard

type of dashboard used by analysts

supports interaction with data, such as drill-down

complex data, sophisticated display, and statistical snapshots

operational dashboard

type of dashboard used to monitor operations, alerts for critical events

real-time data

performance management

the process of ensuring that a set of activities/outputs meets an organization’s goals in the most effective/efficient manner

focuses on the performance of an organization, department, employee, or process

top-down

most performance management is ________

(objective + goal —> business strategy —> operations)

efficiency, effectiveness

performance is about ______ (cost, quality, timeliness, availability) and ______ (quality and conversion)

Slack

company with three top-line KPIs

intended to give employees the freedom and agility to make rapid-fire judgements

operates on a freemium model

increasing general awareness of the company

accelerating customer growth

maturing a sales pipeline

Slack’s 3 top-line KPIs

Adidas

company that used to focus exclusively on traditional financial metrics

recently became very brand-centric

new KPI around net promoter score

net promoter score

Adidas’s KPI that is basically an influencer score that sees when/where people promote their product

leading indicators

types of indicators that indicate performance that might produce future success

ex - product trials, website visits, email click visits

early impact of strategic action

lagging indicators

types of indicators that indicate past performance

ex - customer satisfaction, sales, number of deaths, NPS, customer churn

final impact of strategic action

customer churn

% of customers that stop doing business with an organization

OpenTable

company whose CEO favors flexible, purpose-driven, 90-day targets over longer terms (*shorter term targets because of KPIs evolving)

OKRS - objectives and key results

yes

do KPIs have to adapt over time?

GE Healthcare

company whose business is more B2B

“As you think about the touch points along the entire customer journey, and not just the commercial journey but the whole life cycle journey”

GoDaddy

company that supports KPIs for customer lifetime value

explicitly invests in KPIs as data training sets for its smartest machine learning algorithms

each management meeting is explicitly linked to a KPI

data training sets

GoDaddy explicitly invests in KPIs as ________ for its smartest machine learning algorithms

each management meeting is explicitly linked to a KPI

customer segmentation

grouping existing and potential customers based on shared characteristics

customer lifetime value

the total worth to a business of a customer over the whole period of their relationship with the brand

brand equity

net promoter score

brand awareness

brand sentiment

brand sentiment

the overall feeling people have towards a brand

drill-down

KPIs drilling through capabilities helps gain deeper insight

6 behaviors common to advanced KPI usage

• use KPIs to lead, as well manage, the enterprise

• develop an integrated view of the customer

• see KPIs as data sets for machine learning

• drill down into KPI components

• share trusted KPI data

• aim for KPI transparency

balanced scorecard

organizes KPIs:

• financial or stewardship - financial performance, effective resource use

• customer and stakeholder - customer value, satisfaction/retention

• internal process - efficiency, quality

• organizational capacity or learning and growth - human capital, infrastructure and technology, culture