Significance of KPIs in monitoring operation health
In today’s world the biggest challenge in front of the Service Providers is to decide on which business area they should focus more on. There is a dilemma on whether it has to be Operational Excellence, Customer Intimacy or the Product Leadership. Moreover it is very difficult for them to choose and analyze the right sets of Key Performance Indicators (KPIs) for each business area which are not only responsible to drive these processes but also act as a key factor to enhance the business by correlating different business elements within the focused area.
For a successful and sustainable business it is imperative to identify and measure the right Key Performance Indicators (KPIs). Using KPIs, Service Providers will able to measure the health of the system and ensure that all individuals at all levels are “marching in step” to the same goals and strategies defined by them. This will further guarantee a long-term profitability from operations.
Therefore, a robust KPI Management Framework is required to manage and keep the overall hygiene of the organization / unit / department / service / networks / systems. The framework will give service providers a quantifiable means to identify, measure and improve target business areas. KPI Management Framework is governed by simple rules & logics to Identify, Prioritize, Standardize the KPIs.
With the help of KPI Management framework, they will able to maximize their benefits from collected data, by offering a systematic approach consisting of three key steps:
• Identify KPIs for improving efficiency and profitability
• Validate the quality of data used to develop KPI Metrics
• Leverage the KPI metrics to make business decisions
This effective mechanism ensures that any operator, using this mechanism, will able to continuously outperform the competition and deliver high value services to their customers. Following are the key benefits in using a KPI based measurement system:
• Improved Commited to Delivered Customer Experience
• Optimized processes leading to peak performance
• Abilitiy to identify, measure and improve target business areas
• Campare with the Industry benchmarks on processes
• Highlight pain areas for improvements
• in-line with Industry defined standards and framewors such as eTOM
The availability of such a measurement framework would help service providers calibre and improve their customer experience as well as operationally improve resulting in two fold benefits of customer satisfaction and opeational efficiency.
