As you all know, measures are identified at the analysis stage of Data Warehouse/BI project. Are all identified measures KPIs? This question came up, while we were having a discussion on one of our new projects. It was an interesting question, thought to make a post on it, showing what I think, what I have read…
In a way, yes, we can consider all measures as KPIs. But they become proper KPIs when it shows the quality of the value, health of the value. This requires another attribute to be attached:
Let’s take an example, Sales Amount, obviously it is a measure. It shows the sales amount for some dimensions (for current year, for a product). Does it show the health of that value, whether it is good or bad? No, it is just a value. Important thing to remember is, KPI is not just a value, it indicates the health of the value too. So, if we need to make Sales Amount as a KPI, we need to use another attribute such as Target. Target value allows to judge the Sales Amount whether it is healthier or not, hence Sales Amount becomes a KPI.
That’s how I see the difference between a measure and a KPI? Am I right? Any thoughts on this?