【Data Quality】--Level of Cognitive Indicators

In the second part of data quality, we explained the splitting of data flow into evaluation flow and analysis flow; and in the previous part, we detailed the normative way of naming indicators. In order to give readers a deeper understanding of indicators, this article will establish a perception that indicators actually have different levels, and different levels correspond to different application methods .

640?wx_fmt=png&wxfrom=5&wx_lazy=1

As shown in the figure above, from the broadest perspective, we can divide the indicators into two categories: "core indicator group" and "business indicator group" , and there will be a mutual conversion relationship between the two categories.

The core indicator group can be understood as the corresponding indicators in the "evaluation flow" . They are the quantification of key business links formed from the perspective of strategy and serving for decision-making. The core indicator group generally comes from a stable business meaning and indicator system. Such as financial metrics, customer lifecycle, inventory management metrics, annual & quarterly KPIs, OKRs, and more. Generally, new ones will be added continuously, but the definition of an original indicator will rarely be changed.

In the core index group, what is the meaning of macro evaluation index and subdivision evaluation index? Segmentation is the subdivision of certain dimensions, or the dismantling of indicators. For example, GMV is the company's core macro index, then the customer unit price and unit volume that constitute GMV are a class of subdivision evaluation indicators; for example, the purchase conversion rate is the core indicator, then the purchase conversion rate from SEM traffic is based on Evaluation metrics for traffic channel segmentation.

The subdivision evaluation indicators should be applied from the two aspects of indicators and dimensions, which can often form an "analytical" effect on the macro evaluation indicators, and have a strong ability to drill down and analyze and locate problems.

The business indicator group is characterized by flexibility and change , which is in contrast to the long-term stability of core macro indicators.

In terms of business result indicators, since it is called "result", it means that it also has certain evaluation attributes. However, the existence time of such indicators is often relatively short, such as monthly goals or weekly goals; in addition, business result indicators often correspond to the reflection of key processes from a long-term perspective, such as the development progress of a certain product and the completion of a certain project. progress etc.

In some companies with long business chains and multiple management levels, there will also be a large number of business result indicators, such as evaluation indicators for channel providers, and evaluation indicators for employees or departments. These indicators often evolve from core indicators, but they change frequently.

Business tracking indicators or analysis process indicators are actually not difficult to understand. They are various quantitative methods that need to be defined when specific problems are applied. Everyone's definition can be different as long as it achieves its purpose.

After the description of the two parts of indicators, how to apply the two parts of indicators? The answer is relatively clear and can be expressed in two sentences:

At the decision-making level, the core indicator group is used as the main basis for analysis and judgment (i.e. evaluation flow), and the information transmitted by business indicator group (i.e. analysis flow) can also be used for reference; the important thing is to be able to distinguish between the results and the difference in the brain. process, not confusion.
The execution layer applies business indicator groups to achieve business goals, but uses core indicator groups to recognize the results. Don't use business metrics or even process metrics to measure work results.

An additional reminder is required:

According to the observation, it is found that many companies or departments have macro evaluation indicators that are directly removed by departments or regions and become business result indicators. For example, sales are the company's core evaluation index, but in major regions, provinces, and cities, sales are still the monthly or even weekly evaluation index for employees. This situation is not necessarily wrong, but it is worth noting. Such a KPI demolition method shows that the middle management does not conduct business analysis according to the actual situation, but only uploads and releases them mechanically, which sometimes makes the front-line execution actions confused or even deformed.

END

Copyright statement: Part of the content of this number comes from the Internet. Please indicate the original link and author for reprinting. If there is any infringement or the source is wrong, please contact us.

【Data Quality】--Level of Cognitive Indicators

Guess you like