Unit – 4

Reporting and Performance Measurement

Big data plays a crucial role in online data analysis, organizational information, and intelligent reporting. In
our fast-paced digital age, companies must adjust to the ambiguity of data and act accordingly. BI reporting
is the answer.
Spreadsheets no longer provide adequate solutions for a serious organization looking to analyze and utilize
every strand of relevant data gathered accurately.
So, that’s where business intelligence reporting comes into play - and, indeed, is proving pivotal in
empowering organizations to collect data effectively and transform insight into action.
When we talk about reporting in business intelligence (BI), we are talking about two things. One is reporting
strictly defined. The other is “reporting” taken in a more general meaning.
In the first case, reporting is the art of collecting data from various data sources and presenting it to end-users
in a way that is understandable and ready to be analyzed. In the second sense, reporting means presenting
data and information, so it also includes analysis–in other words, allowing end-users to both see and
understand the data, as well as act on it.
Reporting data is a crucial process where data is collected, analyzed, and presented in formats such as charts,
tables, and dashboards to inform decision-making. Effective reporting transforms raw data into actionable
insights, highlighting trends, performance metrics, and areas that require attention or improvement. It serves
as a foundation for businesses to track their progress against goals, identify opportunities for optimization,
and communicate findings to stakeholders in an understandable and actionable manner. Good reporting
practices ensure data accuracy, relevance, and timeliness, facilitating strategic planning and operational
efficiency.

Benefits of BI Data Reporting

Reporting is the necessary prerequisite of analysis; as such, it should be viewed in light of the goal of
making data understandable and ready for easy, efficient and accurate analysis.
• Collecting and presenting data ready to be analyzed, including historical data that can be tracked
over time
• Empowering end-users with the knowledge to become experts in their area of business
• Having the underlying figures to back up actions and explain decisions

Types of Business Intelligence Reports

Business intelligence reporting can be divided into four main categories:

1) Descriptive Reports
• Descriptive reports refer to the interpretation of historical data to better understand changes that occur in
a business. It also provides an overview of past performance and current trends.
• Descriptive reports are beneficial for tracking long-term performance or identifying changes in customer
behaviour over time where its use of a range of historic data to draw comparisons with other reporting
periods for the same company (i.e. quarterly or annually) or with others within the same industry.
• They often include data points such as customer demographics, sales volume, cost analysis, and market
share.
• Most commonly reported financial metrics are a product of descriptive analytics, such as year-over-year
(YOY) pricing changes, month-over-month sales growth, the number of users, or the total revenue per
subscriber. These measures all describe what has occurred in a business during a set period.
 Above table reports descriptive statistics for the experimental sample, that is mean, standard deviation
(std), 25 th percentile, 75 th percentile, 90 th percentile, 99 th percentile, and the number of observations
(Obs.) for each major variable in the dataset.

2) Diagnostic Reports

• Diagnostic analytics involves the use of data to understand the relationship between variables and why
certain trends exist.
• Simply, it's another way to determine why something happened.
• This type of analysis can be undertaken manually or with the help of computer software.
• Unlike other types of analytics, diagnostic analytics does not try to understand a company's historical
performance or to make predictions about what companies can expect in the future. Instead, it is
commonly used by key stakeholders to figure out the root cause of an event and make changes in the
future.
 Above report has basically four sections comprising: general information about the exams, information of the
patient treatment, symptoms and signs; the protective threshold, which emphasizes the sensitive points of
patient`s foot and some conclusions about the situation of the patient. These conclusions are generated
automatically by the system, establishing the classification of the amputation risk and the guidelines that the
patient has to follow in his treatment.

3) Predictive Reports
• Predictive analytics tries to make predictions about future performance. This is done through the use of
statistics and modeling.
• Current and past data are used to determine whether similar outcomes are likely to happen again in the
future.
• Companies that employ predictive analytics can benefit by identifying and addressing inefficiencies. They
can also use it to find better and more efficient ways to put their resources (such as supplies, labor, and
equipment) to work.
• Predictive reports are essential for planning and budgeting purposes.

Uses of Predictive Analytics

➢ Manufacturing - Forecasting is essential in manufacturing to optimize the use of resources in a supply
chain. Critical spokes of the supply chain wheel, whether it is inventory management or the shop floor,
require accurate forecasts for functioning.
➢ Credit - Credit scoring makes extensive use of predictive analytics. When a consumer or business
applies for credit, data on the applicant's credit history and the credit record of borrowers with similar
characteristics are used to predict the risk that the applicant might fail to repay any new credit that is
approved.
➢ Marketing - Marketing professionals planning a new campaign look at how consumers have reacted
to the overall economy. They can use these shifts in demographics to determine if the current mix of
products will entice consumers to make a purchase.
➢ Stock Traders - Active traders look at a variety of historical metrics when deciding whether to buy a
particular stock or other asset. Moving averages, bands, and breakpoints all are based on historical data
and are used to forecast future price movements.
➢ Fraud Detection - Financial services use predictive analytics to examine transactions for irregular
trends and patterns. The irregularities pinpointed can then be examined as potential signs of fraudulent
activity.This may be done by analyzing activity between bank accounts or analyzing when certain
transactions occur.
➢ Supply Chain - Supply chain analytics is used to manage inventory levels and set pricing strategies.
Supply chain predictive analytics use historical data and statistical models to forecast future supply
chain performance, demand, and potential disruptions. This helps businesses proactively identify and
address risks, optimize resources and processes, and improve decision-making. Companies can forecast
what materials should be on hand at any given moment and whether there will be any shortages.
➢ Human Resources - Human resources uses predictive analytics to improve various processes such as
identifying future workforce skill requirements or identifying factors that contribute to high staff
turnover.

4) Prescriptive Reports
• Prescriptive reporting is a type of data analytics that attempts to answer the question "What do we need
to do to achieve this?"
• It involves the use of technology to help businesses make better decisions through the analysis of raw
data.
• Prescriptive reports specifically factors information about possible situations or scenarios, available
resources, past performance, and current performance, and suggests a course of action or strategy.
• It can be used to make decisions on any time horizon, from immediate to long-term.
• It is the opposite of descriptive analytics, which examines decisions and outcomes after the fact.
• They provide deep insights into customer needs and offer recommendations on how to best meet those
needs.
• With prescriptive reports, businesses can anticipate demands and adjust strategies accordingly.
How Do You Create Engaging Stakeholder Reports?
The following steps must be considered while designing effective reports for different stakeholders
1) Know your stakeholders
Before you start writing your report, you need to identify who your stakeholders are, what they care
about, and how they prefer to receive information. You can use a stakeholder analysis matrix to map out
their level of influence, interest, and engagement in your project. This will help you tailor your report to
their specific goals, concerns, and feedback. You can also segment your stakeholders into different
groups based on their roles, responsibilities, and perspectives, and create different versions of your report
for each group.
2) Define your purpose and scope
Your stakeholder report should have a clear and concise purpose and scope that aligns with your project's
objectives and deliverables. You should state why you are writing the report, what you want to achieve,
and what you expect from your stakeholders. You should also define the time period, scope, and
boundaries of your report, and explain any assumptions, limitations, or changes that may affect your
project. Your purpose and scope should be consistent throughout your report and reflect your
stakeholder's expectations.
3) Use a logical structure and format
• Your stakeholder report should have a logical structure and format that makes it easy to read,
understand, and act on.
• A standard template or a custom one based on the project's needs and stakeholder preferences can be
used.
• Typical sections of a stakeholder report may include an executive summary, introduction, body,
conclusion, and appendices.
• The introduction should provide the background and context of the project.
• The body should include a detailed description and analysis of the project's progress, performance,
risks, issues, and achievements.
• The conclusion should summarize key findings, outcomes, and implications as well as provide
actionable recommendations for stakeholders and next steps for the project.
• Appendices can include additional or supplementary information such as data tables, charts, graphs,
or references.
• It is important to use a consistent and professional format for your report - font, color, layout, and
style - as well as headings, subheadings, bullet points, white space to organize your information.
Charts, graphs, images or icons can be used to visualize data and make it more engaging.

4) Write with clarity and simplicity

Your stakeholder report should be written with clarity and simplicity, using clear, concise, and accurate
language. You should avoid jargon, acronyms, or technical terms that may confuse or alienate your
stakeholders. You should also use active voice, positive tone, and simple sentences and paragraphs to
convey your message and create rapport. You should also proofread and edit your report for grammar,
spelling, and punctuation errors, and ensure that it is consistent and coherent.
5) Solicit feedback and follow up
Your stakeholder report is not a one-way communication, but a part of an ongoing dialogue and
relationship with your stakeholders. You should solicit feedback and follow up with your stakeholders
after you send your report, and use their input to improve your future reports and your project. You
should also thank your stakeholders for their time, attention, and support, and acknowledge their
contributions and expectations. You should also keep them updated on your project's status, changes,
and achievements, and maintain regular and transparent communication.
Key Performance Indicators (KPIs) and Metrics For Measuring Business Performance
Despite coming from the same family of performance measurement, KPI and Metrics have different
characteristics and are used by businesses in their unique ways.
1) Key Performance Indicators (KPIs) –
KPI metrics or KPIs are quantifiable measures used to gauge the performance or progress of specific
business objectives or goals. They are specifically dedicated to 'Key' objectives and thus act as
measurable benchmarks for long-term goals. A good KPI metric should act as a compass helping you
and your team understand if you're making the right decisions and heading the right way. good KPIs
inherit the following characteristics:
• Provides statistical evidence of progress towards long-term goals
• Measures key business objectives to help make informed decisions
• Offers a comparison that measures the degree of performance change over time
• Equally balanced between leading and lagging indicators

KPIs specifically help determine a company's strategic, financial, and operational achievements
compared to its competitors. From HR and managers to marketing and sales teams, key performance
indicators help every area of the business move forward at the strategic level. Although KPIs are subject
to business operations and strategic goals, there are some that remain in common while measuring
business performance.
Examples of KPIs:
• Revenue KPIs: Measure the revenue earned by the company over time
• Sales KPIs: Measure how sales are increasing or decreasing over time
• Strategic KPIs: Measure the performance of strategies put in place
• Profit Margin: Evaluate how much profit you make per sale after deducting expenses
• Customer Service KPIs: Evaluate the impact of service on your customers and identify drawbacks

2) Metrics –
Like KPIs, metrics are quantifiable measurements, but unlike KPIs, they are used to measure the performance
of specific business processes at an operational level. While some metrics closely accompany business
objectives, they are not the most important indicators of your business performance.
For example, the number of users visiting your website is a critical metric to cover. But it's not something
that drives the success of your business primarily.These metrics are called vanity metrics that just make you
feel good.
However, metrics are still relevant for tracking progress and making informed decisions.
So, metrics are any type of data collected as a part of routine business operations. And hence, a mix of custom
metrics can be used to define long-term KPIs for your business.
There are three significant reasons for why metrics are as crucial as KPIs –
1. Metrics provides in-depth insights into how well particular campaigns, strategies, and activities are
performing
2. Metrics allow you to gauge business performance against competitors
3. Metrics helps organizations identify the KPIs that are most important to an organization's success and
how they interlink to each other
For example, Email deliverability may not be an important KPI for your business, but the number of emails
that convert to customers most likely will be. Therefore, you need to analyze that metric (deliverability) to
achieve the KPI (email conversion).
Difference between KPIs and Matrics

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