KPI, Redundancy, Intelligent Agents Key

KPI, Redundancy, Intelligent Agents

Key Performance Indicators

Key Performance Indicators are critical benchmarks companies select to measure their relative success or failure over a specified period of time or after implementing certain new standard operating procedures or technology. For example, in the food industry, benchmarks of success may include customer satisfaction, quality control, or cost control. or, they might encompass the improved profitability manifested after introducing new methods of serving customers and warehousing consumer preferences in a new database. KPIs may also be subdivided. For example, specifically regarding customer safety and the ability to meet federal safety guidelines, an audit of key performance indicators at a food company compared various subsidiaries of 12 semi-autonomous units. According to Colin W. Fuller's article (1997) "Key performance indicators for benchmarking health and safety management in intra- and inter-company comparisons," when computing the results for the different units: "a significant (r = 0.985) positive relationship was obtained between ten operational performance indicators and overall performance. The key factors were found to have a common theme relating to employer-employee openness in communication on health and safety issues" (Fuller, 1997: 165). Although "the key factors did not have a common theme but there was evidence that integration of health and safety management into long-term business decision making was a strong factor" in meeting desired requirements (Fuller, 1997: 165).

This article's audit thus did not simply indentify areas of strengths and weakness, but also highlighted which KPIs were most apt to be correlated with achieving organizational objectives, which should be included in future audits and which would be harbingers of success in the future. Without defining KPIs, a company will have little sense if it is meeting or not meeting its objectives when it introduces a new operating system. The computer system may be efficient and technologically sound, but that is not enough -- it must also meet business objectives. Of course, increased profitability after implementing a change is one measure of success. But a company might be temporarily profitable because of a general upturn in the economy, even though it is not following best practices. Additionally, certain benchmarks (such as safety and security) must also be met, even if they might not have an immediate impact upon profitability.

Reference

Fuller, Colin W. (1997) Key performance indicators for benchmarking health and safety management in intra- and inter-company comparisons. Benchmarking: An International

Journal, 4(3): 165 -- 174.

Redundancy

Redundancy, or data redundancy, is defined as having data stored in two separate locations. On one hand, backing up data is important. If a part of a system is damaged, redundancy enables some or all of the system to be reconstructed. A good, simple example is backing up an important document on a CD as well as on one's hard drive. If a computer crashes in the middle of someone working on the file, the data can be reconstructed based upon the previous day's saved file in the alternative location.

However, data redundancy is not problem-free. On the other hand there may be inconsistencies if data is stored in one location, but not similarly altered in the other location. Another definition of data redundancy is: "A problem occurring when businesses were computerizing their operations. Data was duplicated in different places and so some of the data became redundant as the companies developed their database systems to be more efficient" (Data redundancy, 2001, Computing students). Data stored on the previous system was not entered perfectly, thus causing confusion when users were still accessing the two separate systems.