Linking Process Mesh Performance Indicators to Data Mesh Quality to Analytic Mesh KPI's

[STALANKI]

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:)?