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Parametric settings

Parametric customization of KPI MONITOR significantly reduces roll-out time, administration burden, as well as time of KPI system adjustment, thereby reducing total cost of ownership.

Accordingly to experts, key performance indicators (KPI) must undergo regular review and adjustment (at least once a 1,5-2 years), as a dynamic business environment bears various changes to business processes and technology, organizational structure and staffing, as well as changes in tactical targets and strategic objectives of the company. Under such circumstances it is extremely important for executive and top-managers to have the ability of rapid KPI hierarchy modifications.

Parametric settings mechanism implemented in the KPI MONITOR provides simple and easy configuration of program elements by the end user. Configuring of KPI system of any complexity is performed by analyst or top-manager of the company without making a direct changes to a source code.

First of all we are talking about setting up logic of indicators calculation, which defines one of significant distinction of KPI MONITOR from other programs of same class. Most of these programs provides methods of indicator calculation by means of various commands and procedures, that require engaging both analyst and IT professional, delays modification time and and increases the cost of system maintenance.

During the set up, the user can:

  • Specify a formula for indicator calculation.
  • Use other indicators as parameters
  • Apply analytical filters to each parameter involved in the calculation

Algorithm of indicator calculation defined in the formula, where parameters can be bound to other indicators, restricted by analytical filters, or to numerical values. In addition, parametric set up provides a comprehensive set of mathematical and financial functions which can be used in the formula: the sum, average, if , sum if, etc.

In order to explain indicator calculation options we will use the example of banking indicator "Interest income from credit portfolio” where calculation involves a number of other indicators. Some of them reflects actual values of the past month, others – planned values, derived from them with regard to certain factors. In general, set of parameters involved in calculating looks as following:

Actual data for last month

CodeIndicatorValue
A fixed-term liabilities (September) 5 546 000
B credit portfolio (October) 5 900 000

Coefficients (analytical data)

CodeIndicatorValue
C Level of default portfolio 7%
D Coefficient of portfolio pay-out (October) 5%
E interest rate for the portfolio (October) 18%

Planned data for the next month

CodeIndicatorValueFormula
F Fixed-term Debt (October) 5 212 650   G-H
G Credit portfolio, including (October) 5 605 000 B-I
H Debt default (October) 392 350 G*C
I paid out credits (portfolio) 295 000 B*D

The index "Interest income for credit portfolio” is calculated as: (A+F)/2*E/12

parametric-settings

Additional features of parametric settings

  • manually adding, deleting and adjusting values of indicators, as well as their analytical parameters
  • ability to duplicate indicator while preserving their basic settings (type, formula, filters, liability, etc.)
  • the ability to publish indicators, scorecards, reports and monitoring panels for specific users
  • specify the colour highlighting of target areas and risk areas
  • graphical representation of the report (area plot, lines, columns, histogram)
  • ability to invert the colour of the trend (when the decrease in the rate means positive dynamics of indicator, i.e. "Expenses")
  • selecting the time period (day, week, month, etc.)
  • configuring tree-like hierarchy of indicators. (Defining the parent indicator and specifying child elements, each of which can be indicator or another hierarchy
  • customizing of user and system filters
  • configuration of data import (source selection, setup templates and import schedule)
  • Customize reports
  • adjustment of the monitoring panels (selecting elements and their locations)