Three kinds of Business Metrics: Sales (Revenue), Profitability (Efficiency) and Risk metrics. (Ref. # 1)
Four types of Functional Analytics: Production (e.g. Publishing), Marketing/Sales, Operational and Financial analytics.
Create a matrix 3 across by 4 down.
Fit all the different possible metrics (appropriate to your specific business) in the relevant sector, being one of the 3 kinds of Business Metrics and one of the 4 types of Functional Analytics.
Refine and rationalise your list.
This matrix forms the basis for a new and improved management information and business analytics system.
It can now be built directly into a new Digital Business System, or developed within your existing reporting suite.
(Don’t forget to build the interactive MI Dashboard too.)
Remember that Business Metrics are those numbers which are internal to the business which the business has influence over and is able to change. This is compared to external environmental factors such as a recessionary environment, or business and consumer taxation rates, which impact the business but are not able to changed by it.
References:
1. Business Metrics for Data-Driven Companies – Duke University (Coursera)