A Brief History of Data Visualization
1900s –
more formal attitude toward visualization
focus on color, value scales, and labeling
Publication of the book Semiologie Graphique
2000s –
Emergence of Internet as the medium for
information visualization raising visual literacy
Incorporate interaction, animation, 3D graphics-
rendering, virtual worlds, real-time data feed
2010s and beyond – ?
Different Types of Charts and Graphs
Which one to use? Where and when?
Basic Charts and
Specialized Charts and
Graphs
Line Chart
Graphs
Histogram
Bar Chart
Gantt Chart
Pie Chart
Scatter Plot PERT Chart
Bubble Chart Geographic Map
Bullet Graph
Heat Map / Tree Map
Visual Analytics
A recently coined term
Information visualization + predictive analytics
Information visualization
Descriptive, backward focused
“what happened” “what is happening”
Predictive analytics
Predictive, future focused
“what will happen” “why will it happen”
There is a strong move toward visual analytics
Data Science Skills
Performance Dashboards
Performance dashboards are commonly used in BPM software suites
and BI platforms
Dashboards provide visual displays of important information that is
consolidated and arranged on a single screen so that information can
be digested at a single glance and easily drilled in and further
explored
Performance Dashboards
Dashboard design
The fundamental challenge of dashboard design is to display all the required
information on a single screen, clearly and without distraction, in a manner
that can be assimilated quickly
Three layer of information
Monitoring
Analysis
Management
Performance Dashboards
What to look for in a dashboard
Use of visual components to highlight data and exceptions
that require action.
Transparent to the user, meaning that they require minimal
training and are extremely easy to use
Combine data from a variety of systems into a single,
summarized, unified view of the business
Enable drill-down or drill-through to underlying data
sources or reports
Present a dynamic, real-world view with timely data
Require little coding to implement/deploy/maintain
Best Practices in
Dashboard Design
Benchmark KPIs with Industry Standards
Wrap the Metrics with Contextual data
Validate the Design by a Usability Specialist
Prioritize and Rank Alerts and Exceptions
Enrich Dashboard with Business-User Comments
Present Information in Three Different Levels
Pick the Right Visual Constructs
Performance Dashboard – Steps
Step
StepOne:
One: Step
StepTwo:
Two: Step
StepThree:
Three: Step
StepFour:
Four: Step
StepFive:
Five:
Articulate
Articulate Translate
Translate Devise
Devise Link
LinkMetrics
Metrics Calculate
Calculate
Business
Business Strategy
StrategyInto
Into Metrics
Metrics To
ToLeading
Leading Current
CurrentAnd
And
Strategy
Strategy Desired
Desired And
AndLagging
Lagging Target
Target
Outcomes
Outcomes Indicators
Indicators Performance
Performance
Market Opportunity Market Opportunity
Market size?
• Opportunity Opportunity Market
• Market Opportunity
size and growth
• Opportunity size?
• Competitive environment? • Market sizeand
• Average age andincome
growth
• Competitive environment? • Average age
• Competitor and income
concentration
• Competitor concentration
Business Model Business Model
• UniqueBusiness Model • CustomerBusiness Model
Develop resource system required to deliver the strategy
value proposition? perceived
• • Customer perceived
Develop resource system required to deliver the strategy
Unique value
• Capabilities vs. proposition? benefits • For each metric, • For each metric,
Define goals and value proposition
• Capabilities vs. benefits partnerships
• Exclusive • For each metric, • For each metric,
competition? determine the calculate current
Define goals and value proposition
competition? • $• Exclusive
invested inpartnerships
technology vs determine
metrics that itthe
affects calculate
level current
of performance
• $ invested in technology vs metrics that ititaffects level of performance
competition and that affect • Determine target
Implementation and competition
Implementation • Mapandthe
that affectsetit of • Determine target
linked level required to
Implementation
Branding and • Customer Implementation
brand awareness • Map the linked set of leveloutcomes
required to
• Customer brand awareness metrics, indicating meet
Branding
• How to develop brand? • System uptime percentage metrics, indicating meet outcomes
• How to develop brand? • leading and lagging described in Step 2
• How to go to market? • Number of IT staffpercentage
System uptime leading and lagging
indicators described
• Ensure that in Step 2
targets
• How to go to market? •% • Number of IT staff indicators • Ensure that targets
inaccurate orders • Ensure that there is are consistent with
• % inaccurate orders •
a Ensure
balancethat there is
between are other
each consistent with
Customer Customer a balance
leading and between
lagging each other
Customer
• How to acquire customers? Customer
• Market share leading and lagging
• • indicators
How
• How to customers
will acquire customers? Market share
• Purchases / year indicators
• How will customers • Purchases / year
• Success
change? rate
change?
• The • Success rate
• Service
customer experience? requests / customer
• The customer experience? • Service requests / customer
Financial Financial
Financial
• Financial consequences in • Revenue Financial
• Financial consequences in • Revenue
• Profit
terms of revenue, profit,
terms of revenue, profit, • Profit
• Earnings
cost and balance sheet? per share
cost and balance sheet? • Earnings per share
• Debt to Equity ratio
• Debt to Equity ratio
Plan Remaining Lectures
Data Mining ; R for Statistics Analysis
Future of Analytics ; Dashboard with Excel
Revision ; Presentations
Final Exam
Business Performance
Management (BPM)
Business Performance Management (BPM) is…
A real-time system that alerts managers to potential
opportunities, impending /future problems and
threats, and then empowers them to react through
models and collaboration.
Also called corporate performance management
(CPM by Gartner Group), enterprise performance
management (EPM by Oracle), strategic enterprise
management (SEM by SAP)
Business Performance Management
(BPM)
BPM refers to the business processes,
methodologies, metrics, and technologies used by
enterprises to measure, monitor, and manage
business performance.
BPM encompasses three key components
A set of integrated, closed-loop management and analytic
processes, supported by technology …
Tools for businesses to define strategic goals and then
measure/manage performance against them
Methods and tools for monitoring key performance
indicators (KPIs), linked to organizational strategy
A Closed-Loop Process to Optimize
Business Performance
Process Steps
1. Strategize
2. Plan
3. Monitor/analyze
4. Act/adjust
Each with its own process
steps
Strategize:
Where Do We Want to Go?
Strategic planning
Common tasks for the strategic planning process:
1. Conduct a current situation analysis
2. Determine the planning horizon
3. Conduct an environment scan
4. Identify critical success factors
5. Complete a gap analysis
6. Create a strategic vision
7. Develop a business strategy
8. Identify strategic objectives and goals
Plan:
How Do We Get There?
Operational planning
Operational plan: plan that translates an organization’s
strategic objectives and goals into a set of well-defined
tactics and initiatives, resources requirements, and
expected results for some future time period (usually a
year).
Operational planning can be
Tactic-centric (operationally focused)
Budget-centric plan (financially focused)
Monitor/Analyze:
How Are We Doing?
A comprehensive framework for monitoring
performance should address two key issues:
What to monitor?
Critical success factors
Strategic goals and targets
…
How to monitor?
…
Act and Adjust: What Do We
Need to Do Differently?
Success (or mere survival) depends on new projects:
creating new products, entering new markets, acquiring
new customers (or businesses), or streamlining some
process.
Many new projects and ventures fail!
Performance Measurement
Performance measurement system
A system that assists managers in tracking the implementations of
business strategy by comparing actual results against strategic goals
and objectives
Comprises systematic comparative methods that indicate progress (or lack
thereof) against goals
KPIs and Operational Metrics
Key performance indicator (KPI)
A KPI represents a strategic objective and metrics
that measure performance against a goal
Distinguishing features of KPIs
Strategy Encodings
Targets Time frames
Ranges Benchmarks
Performance Measurement
Key performance indicator (KBI)
Outcome KPIs vs. Driver KPIs
(lagging indicators (leading indicators
e.g., revenues) e.g., sales leads)
Operational areas covered by driver KPIs
Customer performance
Service performance
Sales operations
Sales plan/forecast
Performance Measurement
System
Balanced Scorecard (BSC)
A performance measurement and management
methodology that helps translate an organization’s
financial, customer, internal process, and learning and
growth objectives and targets into a set of actionable
initiatives
"The Balanced Scorecard: Measures That Drive
Performance” (HBR, 1992)
Balanced
Scorecard
The meaning of “balance”
?
Six Sigma as a Performance
Measurement System
Six Sigma
A performance management methodology aimed
at reducing the number of defects in a business
process to as close to zero defects per million
opportunities (DPMO) as possible
Six Sigma as a Performance
Measurement System
The DMAIC performance model
A closed-loop business improvement model that
encompasses the steps of defining, measuring,
analyzing, improving, and controlling a process
Lean Six Sigma
Lean manufacturing / lean production
Lean production versus six sigma?
