###### Business Trends

# Linking Process Mesh Performance Indicators to Data Mesh Quality to Analytic Mesh KPI’s

# Introduction

In the last 20 years, we have moved our data from online transaction processing systems to data warehouse systems to data lake to distributed data mesh/data-fabric but we still didn’t get data right or we measure data right. A lot of organizations are still battling with multi-million data programmes as they are largely driven by IT teams with under-resourced business teams.

There is no process- centric data and data change story telling on most of the projects and change agents in the data governance boards. It is not surprising to see most of the data activities are still done using the dark age methods and tools even in fortune 100 companies.

“Data mesh is a type of data platform architecture that embraces the ubiquity of data in the enterprise by leveraging a domain-oriented, self-serve design”

I am not even going to get into debate of data mesh vs data fabric as it is utterly useless until we establish the linkage between process performance indicators and data quality KPI(s) and analytic KPI(s). While Signavio process performance indicators provides a good start on it , it doesn’t trace back to data quality and analytic KPI(s) and not comprehensive either. There are analytic KPI(s) as well ( ex: SAC KPI catalog), but again it is not very comprehensive and doesn’t fully trace back to process performance indicators.

I will suggest this as one of the most efficient “Generative AI ” project that SAP can undertake as we don’t need to recreate this at each and every client. SAP knows its process , its CDS data model and its analytic model and then they have partnerships with Collibra and Databricks! It is not difficult for SAP to do it, is it?

For a good coffee, you need right amount of water, milk and decoction..ain’t it? It is same for process, data and analytics too! Wouldn’t it be?

# Process Performance Indicators

I am sharing sample process performance indicators for commonly used areas. If you want an extensive list and you need to build a traceability between Data Quality and Analytic KPI’s then you have to reach out to us.

Process Area |
Performance Indicator |
Formula |

HR | Employee Turnover Rate | (Number of Employees Separated / Average Total Employees) x 100 |

HR | Time to Fill Job Openings | (Total Time to Fill Open Positions / Number of Open Positions) |

HR | Training and Development Cost per Employee | Total Training and Development Costs / Total Number of Employees |

HR | Employee Engagement Index | (Number of Engaged Employees / Total Employees) x 100 |

HR | Training ROI | (Benefit from Training – Training Cost) / Training Cost |

HR | Absenteeism Rate | (Total Days Absent / Total Workdays) x 100 |

HR | Overtime Cost Percentage | (Overtime Cost / Total Labor Cost) x 100 |

HR | Diversity and Inclusion Index | (Number of Diverse Hires / Total Hires) x 100 |

HR | Promotion Rate | (Number of Promotions / Total Employees) x 100 |

HR | Employee Satisfaction Score | (Sum of Employee Satisfaction Ratings / Total Responses) |

HR | Health and Wellness Participation | (Number of Participants / Total Employees) x 100 |

HR | Employee Productivity Index | (Output / Labor Cost) x 100 |

HR | Leadership Development ROI | (Leadership Development Benefits – Cost) / Cost |

HR | HR-to-Employee Ratio | Number of HR Staff / Total Employees |

HR | Compensation Gap | (Average Employee Salary – Industry Average Salary) / Industry Average Salary |

HR | Training Hours per Employee | Total Training Hours / Total Employees |

HR | Talent Acquisition Cost | (Total Cost of Hiring / Number of Hires) |

HR | HR Technology Adoption Rate | (Number of Employees Using HR Tech / Total Employees) x 100 |

HR | Employee Tenure | (Sum of Employee Tenures) / Total Number of Employees |

HR | Employee Referral Rate | (Number of Referrals Hired / Total Hires) x 100 |

HR | Learning and Development Investment | Total Investment in Learning and Development |

HR | Employee Well-being Index | (Sum of Well-being Ratings / Total Responses) |

Finance | Return on Investment (ROI) | (Net Profit / Total Investment) x 100 |

Finance | Working Capital Ratio | (Current Assets – Current Liabilities) / Current Liabilities |

Finance | Gross Profit Margin | (Gross Profit / Revenue) x 100 |

Finance | Debt to Equity Ratio | Total Debt / Total Equity |

Finance | Earnings Before Interest and Taxes (EBIT) | Revenue – Operating Expenses |

Finance | Accounts Payable Turnover | Total Purchases / Average Accounts Payable |

Finance | Operating Cash Flow | Net Income + Depreciation – Taxes + Change in Working Capital |

Finance | Capital Expenditure (CapEx) Ratio | Capital Expenditure / Total Revenue |

Finance | Liquidity Coverage Ratio | (Liquid Assets / Short-term Liabilities) x 100 |

Finance | Accounts Receivable Aging | (Total Accounts Receivable / Total Credit Sales) x 100 |

Finance | Net Working Capital | Current Assets – Current Liabilities |

Finance | Financial Leverage Ratio | Total Assets / Total Equity |

Finance | Capital Efficiency | (Revenue / Total Capital Employed) x 100 |

Finance | Return on Assets (ROA) | (Net Income / Total Assets) x 100 |

Finance | Quick Ratio | (Current Assets – Inventory) / Current Liabilities |

Finance | Financial Forecast Accuracy | (Forecasted Value – Actual Value) / Actual Value |

Finance | Debt Service Coverage Ratio | (Net Operating Income / Total Debt Service) |

Finance | Inventory Holding Cost | (Holding Cost per Unit x Average Inventory) / Total Inventory |

Finance | Dividend Payout Ratio | (Dividends Paid / Earnings) x 100 |

Finance | Cash Conversion Cycle | Days Inventory Outstanding + Days Sales Outstanding – Days Payable Outstanding |

Finance | Budget Variance | (Actual Budget – Planned Budget) / Planned Budget |

Finance | Financial Risk Assessment | (Debt / Equity) x (Earnings Before Interest and Taxes / Interest Expense) |

Sales | Sales Growth Rate | [(Current Period Sales – Prior Period Sales) / Prior Period Sales] x 100 |

Sales | Customer Satisfaction Score (CSAT) | (Sum of Customer Satisfaction Ratings / Total Number of Responses) |

Sales | Sales Conversion Rate | (Number of Conversions / Total Leads) x 100 |

Sales | Sales Pipeline Velocity | (Total Value of Deals in Pipeline / Time to Close Deals) |

Sales | Sales Forecast Accuracy | (Forecasted Sales – Actual Sales) / Forecasted Sales |

Sales | Customer Acquisition Cost (CAC) | (Total Cost of Acquisition / Number of New Customers) |

Sales | Average Deal Size | Total Sales Amount / Number of Deals |

Sales | Sales Quota Attainment | (Actual Sales / Quota) x 100 |

Sales | Customer Churn Rate | (Number of Churned Customers / Total Customers) x 100 |

Sales | Sales to New Customer Ratio | (Sales to New Customers / Total Sales) x 100 |

Sales | Sales Calls-to-Close Ratio | (Number of Calls to Close a Deal / Number of Closed Deals) |

Sales | Sales Productivity | (Total Sales / Total Sales Representatives) |

Sales | Sales Funnel Leakage Rate | (Number of Lost Opportunities / Total Opportunities) x 100 |

Sales | Customer Lifetime Value (CLV) | (Average Purchase Value x Average Purchase Frequency x Average Customer Lifespan) |

Sales | Sales Win Rate | (Number of Won Deals / Total Deals) x 100 |

Sales | Average Sales Cycle Length | (Total Duration of Sales Cycles / Number of Closed Deals) |

Sales | Sales Growth Forecast | [(Projected Sales – Current Sales) / Current Sales] x 100 |

Sales | Market Share | (Company’s Sales / Total Market Sales) x 100 |

Sales | Sales Growth Rate | [(Current Period Sales – Prior Period Sales) / Prior Period Sales] x 100 |

Sales | Customer Satisfaction Score (CSAT) | (Sum of Customer Satisfaction Ratings / Total Number of Responses) |

Logistics & Distribution | Order Accuracy Rate | (Number of Accurate Orders / Total Orders) x 100 |

Logistics & Distribution | Perfect Order Rate | (Number of Perfect Orders / Total Orders) x 100 |

Logistics & Distribution | On-time Delivery Rate | (Number of On-time Deliveries / Total Deliveries) x 100 |

Logistics & Distribution | Order Fulfillment Lead Time | (Total Time to Fulfill Orders / Number of Orders Fulfilled) |

Logistics & Distribution | Warehouse Space Utilization | (Used Warehouse Space / Total Warehouse Space) x 100 |

Logistics & Distribution | Inbound and Outbound Freight Costs | (Total Freight Costs / Total Number of Shipments) |

Logistics & Distribution | Distribution Cost per Unit | (Total Distribution Costs / Total Units Shipped) |

Logistics & Distribution | Perfect Shipment Rate | (Number of Perfect Shipments / Total Shipments) x 100 |

Logistics & Distribution | Carrier On-time Performance | (Number of On-time Carrier Deliveries / Total Carrier Deliveries) x 100 |

Logistics & Distribution | Inventory Accuracy Rate | (Number of Accurate Inventory Counts / Total Inventory Counts) x 100 |

Logistics & Distribution | Inventory Turnover | (Cost of Goods Sold / Average Inventory Value) |

Logistics & Distribution | Distribution Center Productivity | (Total Output / Total Labor Hours) |

Logistics & Distribution | Reverse Logistics Rate | (Number of Returned Items / Total Items Sold) x 100 |

Logistics & Distribution | Order Picking Accuracy | (Number of Accurate Picks / Total Picks) x 100 |

Logistics & Distribution | Order Cycle Time | (Total time taken to process all orders in hours *60*60)/1000 |

Logistics & Distribution | In-Transit Inventory | (Value of Inventory in Transit) |

Logistics & Distribution | Warehouse Employee Productivity | (Total Output / Total Labor Hours) |

Logistics & Distribution | Route Optimization Efficiency | (Savings from Optimized Routes / Total Transportation Costs) |

Logistics & Distribution | Distribution Center Dwell Time | (Total Dwell Time / Total Shipments) |

Logistics & Distribution | Customer Return Rate | (Number of Returns / Total Orders) x 100 |

Logistics & Distribution | Stockout Rate | (Number of Stockouts / Total Stocking Events) x 100 |

Logistics & Distribution | Order Tracking Visibility | (Number of Tracked Orders / Total Orders) x 100 |

# Sustainability Performance Indicators

I think we definitely need to see a sample sustainability performance indicators as it is icing on the cake:)?

Process Area |
Performance Indicator |
Formula |

Energy Efficiency | Energy Intensity | (Total Energy Consumed / Production Output) |

Energy Efficiency | Energy Cost per Unit | (Total Energy Cost / Total Production Units) |

Waste Management | Waste Diversion Rate | (Total Diverted Waste / Total Generated Waste) x 100 |

Waste Management | Recycling Rate | (Total Recycled Material / Total Generated Waste) x 100 |

Water Management | Water Usage Efficiency | (Total Water Used / Production Output) |

Water Management | Water Recycling Rate | (Total Recycled Water / Total Water Used) x 100 |

Emissions Reduction | Greenhouse Gas Emissions | (Total GHG Emissions / Production Output) |

Emissions Reduction | Carbon Intensity | (Total Carbon Emissions / Production Output) |

Supply Chain Sustainability | Supplier Sustainability Score | (Sum of Supplier Sustainability Ratings / Total Number of Suppliers) |

Supply Chain Sustainability | Supply Chain Carbon Footprint | (Total Supply Chain GHG Emissions / Total Production Output) |

Renewable Energy Adoption | Percentage of Renewable Energy Use | (Renewable Energy Consumption / Total Energy Consumption) x 100 |

Sustainable Product Development | Eco-Friendly Product Percentage | (Number of Eco-Friendly Products / Total Number of Products) x 100 |

Employee Engagement | Employee Sustainability Engagement | (Number of Engaged Employees in Sustainability Initiatives / Total Employees) x 100 |

Community Impact | Community Sustainability Projects | (Number of Sustainability Projects in the Community / Total Community Projects) |

Cost Savings | Sustainability-Related Cost Savings | (Total Cost Savings from Sustainability Initiatives) |

Green Certifications | Percentage of Green Certifications | (Number of Green Certified Products or Processes / Total Products or Processes) x 100 |

Carbon Offsetting | Carbon Offset Effectiveness | (Reduction in Carbon Emissions Achieved Through Offset Projects) |

Sustainability Reporting | Sustainability Reporting Transparency | (Transparency Score in Sustainability Reports) |

Biodiversity Conservation | Biodiversity Impact Score | (Biodiversity Impact Assessment Score) |

Stakeholder Engagement | Stakeholder Sustainability Feedback | (Sum of Stakeholder Sustainability Ratings / Total Stakeholders) |

The success of your analytics initiatives depends on the quality of your data and the efficiency of the processes used to manage it.Is it chicken or egg first:)?