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KPI Examples

So let’s walk through some common examples of key performance indicators we might calculate to assess the health of a business. For business in general, you might be interested in how much money is coming in. You might think that’s relatively easy to track. But when you think about it, there is a calculation there. We need to multiply the price of each thing times the quantity that we’ve sold. So there is a calculation there. It’s relatively simple, but it’s something that we’re going to need to calculate to know how much revenue we’re bringing in. We might be interested in the cost, how much money that we have spent. We might be interested in looking at average customer satisfaction.
And we could try cross tabbing that out across different divisions or parts of our company. We might be interested in the average time to market from the development to deployment of a product. In other business contexts, we might have other specific things we might calculate. Think IT or information technology. We might be interested in incident resolution time, how long it takes, on average, for an incident or ticket to get resolved. In the entertainment industry, for instance, we might be interested in the cost, the average cost for every hour of production. So there might be various things that we’re going to calculate that are industry specific that assess the health of a business venture.
Now there are many, many, many KPIs that we could explore. We’re going to get a chance to explore some of those in the labs. But in your business context, it’s worth researching what KPIs make the most sense, whatever it is that you’re going to do. So we will get to explore some in this course. But keep in mind, this is not an exhaustive list. There are literally hundreds, if not more KPIs that could be calculated for any different business context. [LOGO MUSIC PLAYING]
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