InetSoft BI Webinar: Style Intelligence 10.2 - BI for ERP Applications

Mark:  Welcome everyone to InetSoft’s webinar, "What's New in InetSoft's Style Intelligence 10.2." It's our latest business intelligence software release for dashboards, reporting and mashups.  My name is Mark Flaherty, and I’m head of Marketing here at InetSoft, and with me is Byron Igoe, Product Manager.  

So, among the major areas you can see here we have: Monitoring and management where we’ve taken a very large step forward in terms of the kind of performance monitoring you now have at your disposal and we’ll be demoing that. 

Then there’s the geographic mapping of data and this is a scenario where we really brought our capabilities up to levels where you might have only found in specialized business mapping software and we’ll be demonstrating this as well. 

Third is a new term, data grid cache, which is the name for the technology that we’ve developed in 10.2 that delivers performance improvements as well as building architecture for scaling up for large amounts of data and/or large amounts of usage.  And last is new access to a host of third party enterprise application data sources.

View a 2-minute demonstration of InetSoft's easy, agile, and robust BI software.

NEW ENTERPRISE APPLICATION DATA SOURCES

So we’ll do the last one first; the list of new enterprise application data sources. Obviously this might be advantageous to people have one of these applications in their organization and for a long time we’ve been focused on giving lots of access to open standards based data access, but now we’ve begun to broaden our access to third party proprietary applications data storers.  The first of these was back in ’08 when we added access to salesforce.com but now with this release you can see the new big applications like Siebel, JD Edwards, PeopleSoft, and SAP. With that we’ll head to the next slide and talk a little about data grid cache

What KPIs and Metrics Are Tracked in ERP Dashboards?

Here are some of the key KPIs and metrics commonly tracked in ERP dashboards, along with their definitions and significance in performance management:

Financial KPIs

1. Revenue Growth Rate Definition: Measures the percentage increase in revenue over a specific period. Significance: Indicates the company's ability to generate sales and grow its business. A high revenue growth rate is a positive sign of business expansion and market acceptance.

2. Gross Profit Margin Definition: The percentage of revenue remaining after deducting the cost of goods sold (COGS). Calculated as (Revenue - COGS) / Revenue * 100. Significance: Reflects the efficiency in managing production costs and pricing strategy. A higher gross profit margin indicates better profitability.

3. Net Profit Margin Definition: The percentage of revenue remaining after all expenses, taxes, and interest have been deducted. Calculated as Net Profit / Revenue * 100. Significance: Indicates overall profitability and financial health. A higher net profit margin shows that the company is effective in controlling its costs and generating profit.

4. Operating Cash Flow Definition: Measures the cash generated by the company's core business operations. Significance: Indicates the company's ability to generate sufficient cash flow to maintain operations and invest in growth. Positive cash flow is crucial for sustainability.

5. Return on Investment (ROI) Definition: Measures the gain or loss generated on an investment relative to the amount of money invested. Calculated as (Net Profit / Investment Cost) * 100. Significance: Helps in evaluating the efficiency of investments and making informed decisions about future investments.

Supply Chain KPIs

6. Inventory Turnover Definition: The number of times inventory is sold and replaced over a specific period. Calculated as Cost of Goods Sold / Average Inventory. Significance: Indicates the efficiency of inventory management. Higher turnover rates suggest effective inventory control and sales performance.

7. Order Fulfillment Cycle Time Definition: The average time taken to complete an order from the moment it is received until it is delivered. Significance: Reflects the efficiency of the supply chain and order processing systems. Shorter cycle times indicate better operational efficiency and customer satisfaction.

8. Supply Chain Costs Definition: The total costs associated with producing and delivering products, including production, warehousing, transportation, and distribution costs. Significance: Helps in identifying cost-saving opportunities and improving the overall efficiency of the supply chain.

9. Perfect Order Rate Definition: The percentage of orders delivered without any issues (on time, complete, and undamaged). Calculated as (Total Perfect Orders / Total Orders) * 100. Significance: Measures the quality and reliability of the supply chain. A higher perfect order rate indicates superior performance and customer satisfaction.

10. Days Sales of Inventory (DSI) Definition: The average number of days it takes to sell the entire inventory. Calculated as (Average Inventory / Cost of Goods Sold) * 365. Significance: Indicates the efficiency of inventory management and sales processes. Lower DSI values suggest faster inventory turnover and effective sales strategies.

Human Resources KPIs

11. Employee Turnover Rate Definition: The percentage of employees who leave the organization over a specific period. Calculated as (Number of Departures / Average Number of Employees) * 100. Significance: Reflects employee satisfaction and organizational health. High turnover rates may indicate issues with workplace culture, compensation, or management practices.

12. Time to Hire Definition: The average number of days taken to fill a vacant position from the time the job is posted to the time a candidate accepts the offer. Significance: Indicates the efficiency of the recruitment process. Shorter time to hire suggests an effective hiring strategy and a strong talent pipeline.

13. Employee Productivity Definition: Measures the output of employees in relation to the input. Often calculated as Revenue per Employee or Output per Hour Worked. Significance: Reflects the efficiency and effectiveness of the workforce. Higher productivity indicates better utilization of human resources.

14. Training Effectiveness Definition: Evaluates the impact of training programs on employee performance and productivity. Often measured through post-training assessments and performance metrics. Significance: Helps in understanding the value of training programs and identifying areas for improvement. Effective training leads to a more skilled and capable workforce.

Sales and Marketing KPIs

15. Sales Growth Rate Definition: Measures the percentage increase in sales over a specific period. Calculated as (Current Period Sales - Previous Period Sales) / Previous Period Sales * 100. Significance: Indicates the success of sales strategies and market demand. A higher sales growth rate shows effective sales and marketing efforts.

16. Customer Acquisition Cost (CAC) Definition: The average cost incurred to acquire a new customer. Calculated as Total Sales and Marketing Expenses / Number of New Customers Acquired. Significance: Helps in evaluating the efficiency of marketing and sales campaigns. Lower CAC indicates cost-effective customer acquisition strategies.

17. Customer Lifetime Value (CLV) Definition: The total revenue a business can expect from a single customer account throughout the customer's lifetime. Calculated as Average Purchase Value * Purchase Frequency * Customer Lifespan. Significance: Indicates the long-term value of customers and helps in making strategic decisions regarding customer retention and acquisition efforts.

18. Lead Conversion Rate Definition: The percentage of leads that are converted into paying customers. Calculated as (Number of Conversions / Number of Leads) * 100. Significance: Measures the effectiveness of sales and marketing efforts in converting prospects into customers. Higher conversion rates indicate successful lead nurturing and sales processes.

Operational KPIs

19. Overall Equipment Effectiveness (OEE) Definition: Measures the efficiency and effectiveness of manufacturing equipment. Calculated as Availability * Performance * Quality. Significance: Indicates the productivity of manufacturing processes. Higher OEE values suggest efficient use of equipment and minimal downtime.

20. Production Downtime Definition: The total time that production equipment is not operational due to maintenance, breakdowns, or other issues. Significance: Reflects the reliability and efficiency of production processes. Minimizing downtime is crucial for maximizing production output and reducing costs.

21. Capacity Utilization Definition: The percentage of total production capacity that is being utilized. Calculated as (Actual Output / Maximum Possible Output) * 100. Significance: Indicates the efficiency of resource utilization. Higher capacity utilization suggests optimal use of production capabilities.

22. Defect Rate Definition: The percentage of products that fail to meet quality standards. Calculated as (Number of Defective Products / Total Products Produced) * 100. Significance: Reflects the quality of production processes. Lower defect rates indicate better quality control and manufacturing practices.

Significance of KPIs in Performance Management

Tracking these KPIs and metrics in ERP dashboards is vital for effective performance management for several reasons:

1. Performance Monitoring: KPIs provide a clear and quantifiable way to monitor the performance of various business processes. They help in identifying strengths and weaknesses, enabling organizations to take corrective actions and improve efficiency.

2. Informed Decision-Making: By providing real-time insights into business performance, KPIs enable managers to make data-driven decisions. This leads to more accurate forecasting, better resource allocation, and strategic planning.

3. Operational Efficiency: KPIs related to supply chain, production, and operations help in identifying bottlenecks and inefficiencies. Continuous monitoring and optimization of these KPIs lead to streamlined processes and cost savings.

4. Financial Health: Financial KPIs offer insights into the company's profitability, cash flow, and overall financial stability. Regular monitoring helps in maintaining financial discipline and ensuring long-term sustainability.

5. Customer Satisfaction: KPIs related to sales, marketing, and customer service help in understanding customer behavior and preferences. This leads to improved customer satisfaction and loyalty, driving business growth.

6. Employee Performance: HR KPIs provide insights into employee satisfaction, productivity, and retention. Monitoring these metrics helps in creating a positive work environment and retaining top talent.

7. Quality Control: KPIs related to product quality and defect rates ensure that the company maintains high standards. Continuous quality monitoring leads to better products and higher customer satisfaction.