Business Dashboards Key Terms

Important terms you'll encounter as you investigate business dashboard programs

If you want a quick and easy way to monitor how your business is doing, then a business dashboard may be just the tool you're looking for. There are lots of software programs on the market that can help you with this aspect of running your business, so you don't have to invest the resources to develop your own. By purchasing the software, you won’t have to “re-invent the wheel,” and you can take advantage of others' experience and expertise. As you investigate the various dashboard programs that are available, you'll need to become familiar with some of terms you'll run across in your research.

 

Key performance indicators (KPIs)

Key performance indicators (KPIs) are measures that a business can use to help managers define and evaluate how successful it is. A business dashboard usually involves a summary of the KPIs that the organization has selected.
Try: The BetterManagement website has a clear definition of KPIs and includes many articles on this topic in its library.

Business activity monitoring

Business activity monitoring (BAM) software can help business owners manage all the activities they have defined as important and relevant for success. A business dashboard is one way to do business activity monitoring.
Try: BusinessActivityMonitoring.com offers free resources for learning about business activity monitoring and includes links for related sites and BAM vendors.

Operating expenses

Operating expenses, also known as OPEX, are the ongoing cost of running a business. This includes expenses related to things such as sales and administration as well as research and development. A business dashboard should include operating expenses.
Try: You can find a sample of how operating expenses appear on an income statement by clicking the link on the operating expenses definition page at MoneyChimp.

Target income sales

Target income sales are the sales that the business needs to achieve a certain level of revenue or income. Business dashboards usually include a measure of target income sales.
Try: The business glossary at AllBusiness.com includes a definition of and formula for computing target income sales.

Gross profit

Gross profit or sales profit is the calculation of sales before the costs of making a product or providing a service (including overhead, payroll and taxes) are deducted. Business dashboards should include this metric.
Try: InvestorWords.com has a definition of this and several related terms.

Absenteeism

Absenteeism is a measure of how much productive time a business loses when employees are sick or otherwise absent from work, excluding vacation time. Business dashboards usually track this important metric.
Try: Need to know how to deal with an absenteeism problem? Go to Employer-Employee.com.

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