Imagine trying to steer a ship without a compass or map. Managing a digital transformation without the right KPIs and metrics can feel just as directionless. These essential tools do more than track progress—they guide your entire journey toward success. However, despite their importance, there’s still much confusion about what KPIs and metrics are. What exactly do they entail?
Well-designed KPIs and metrics are crucial for an organization’s digital transformation success. Continuous KPI monitoring is essential to keep projects on track. According to experts from MIT Sloan School of Management and Deloitte Consulting, KPIs should lead, not just track, digital transformation initiatives.
Despite their importance, there is still confusion about what KPIs and metrics are and how they differ. As more organizations invest in digital transformation, discussions on the right KPIs and metrics to track are increasing.
In this blog post, we explore these terms and how they can be monitored with the Internet of Things (IoT).
What are KPIs and Metrics?
KPIs or Key Performance Indicators measure how much an organization, team, or individual has achieved their strategic objectives. The success of any initiative depends on many factors, and KPIs simplify them into understandable numbers.
For example, consider an organization introducing an Industrial IoT predictive maintenance system to their manufacturing unit. The success of this solution depends on how well the system measures operational parameters, its reliability, ease of adoption, and other factors. If these factors work optimally, the system should reduce downtime and maintenance costs. These two factors can be chosen as KPIs to track the system’s success.
Metrics, on the other hand, measure activities that help achieve strategic objectives. For the predictive maintenance system, activities like deploying sensors and training employees are crucial. Metrics for these activities could be the number of sensors deployed or the percentage of employees trained.
While KPIs improve due to the program, metrics measure the changes made as part of it. Metrics track numbers that ultimately contribute to changing the KPIs.
Visualizing KPIs and Metrics for Effective Monitoring
For a successful initiative, KPIs and metrics are constantly measured and monitored. Organizations use various KPI monitoring and reporting systems linked to digital workplace tools, often generating data automatically.
For instance, the number of products assembled by employees in an assembly line may be tracked with RFID technology and logged automatically. A service desk dashboard may log the number of tickets handled by employees.
Metrics may be presented during regular meetings or constantly displayed for relevant parties. For example, KPIs for the factory floor may be displayed for workers.
Visualizing these metrics helps teams identify trends and patterns in the KPIs. The goal is to help all parties understand the data, find insights, and adjust their actions accordingly.
How Can IoT Improve KPI Monitoring Systems?
While KPIs are powerful tools, they are not always easy to measure. Collecting valid data points can be challenging and often requires manual processes, consuming resources and sometimes resulting in estimates.
For example, measuring the accurate number of participants in a company event or units produced in an assembly line may not be feasible.
Another issue is the difficulty in measuring KPIs in real-time; sometimes, measurements are too late to make a difference.
IoT monitoring solutions can streamline this process significantly. Sensors can accurately and automatically collect real-time data, automating the KPI monitoring process.
IoT remote monitoring systems offer more data points previously unavailable. For example, IoT sensors allow organizations to collect continuous data about machines on the factory floor. Remote monitoring solutions open possibilities for designing and using better KPIs to drive growth.
Exploring Advanced Metrics with IoT Solutions
The implementation of IoT remote monitoring systems provides additional data points, previously unattainable, enabling organizations to construct and utilize advanced KPIs, fostering growth and innovation.
Integration of Predictive Analytics into KPI Monitoring
Modernizing KPI monitoring with predictive analytics can further augment its effectiveness. By incorporating predictive algorithms into IoT platforms, businesses can anticipate potential failures and optimize KPI tracking for proactive decision-making.
Bridgera’s IoT Platform for Enhanced KPI Monitoring System
Organizations worldwide have leveraged Bridgera’s industry-leading IoT platform to establish and efficiently monitor KPIs. Bridgera, as a leading IoT development company, offers sophisticated tools for comprehensive KPI oversight, ensuring strategic success.
Engage with Bridgera today to explore the benefits of integrating their cutting-edge IoT platform into your strategy.
About Bridgera: Bridgera effortlessly combines innovation and expertise to deliver cutting-edge solutions using connected intelligence. We engineer experiences that go beyond expectations, equipping our clients with the tools they need to excel in an increasingly interconnected world. Since our establishment in 2015, Bridgera, headquartered in Raleigh, NC, has specialized in crafting and managing tailored SaaS solutions for web, mobile, and IoT applications across North America.
About Author: Gayatri Sriaadhibhatla is a seasoned writer with a diverse portfolio spanning multiple industries. Her passion for technology and a keen interest in emerging IoT trends drive her writing pursuits. Always eager to expand her knowledge, she is dedicated to delivering insightful content that informs the audience.