What are Key Performance Indicators?

Key Performance Indicator (KPI: Key Performance Indicator) is a kind of objective quantitative management indicator that measures the performance of a process by setting, sampling, calculating, and analyzing key parameters of the input and output ends of an organization's internal processes. A tool that breaks down goals into actionable work goals is the foundation of enterprise performance management. KPIs can be the head of the department to clarify the main responsibilities of the department, and based on this, to clarify the performance measurement indicators of the department personnel. Establishing a clear and feasible KPI system is the key to good performance management. Key performance indicators are quantitative indicators used to measure staff performance and are an important part of a performance plan.

KPI

Key Performance Indicators (KPI: Key Performance Indicator)

Decomposition of the company's strategic goals

This first means that, as a measure of

The main points of establishing KPI indicators are process, planning and systemic. First clarify the strategic goals of the company and use them in corporate meetings

Key performance indicators (KPIs) are the refinement and induction of key success factors in an organization's operations. Generally has the following characteristics:

(1) Systematic. Key performance indicators (KPIs) are a system. Companies, departments, and teams have independent KPIs, but they must be developed from the company's vision, strategy, and overall benefits, and they must be broken down, layered, and supported.

(2) Controllability and manageability.

There is an important

From the perspective of organizational structure, the KPI system is a vertical indicator system: first determine the company-focused KPIs, and then determine the KPIs to be undertaken by the department or even the individual. Since the KPI system is decomposed layer by layer, this is the index system The strategy has fallen to "people." To implement the strategy concretely, it needs to be explicit. KPIs at each level must be assigned to form a corresponding vertical target system. Therefore, there are "two lines" when implementing the strategy: one is the indicator system and the tool; the other is the target system, which is obtained by using the indicator tool.

Of course, the target system itself is still a

When designing KPI systems, designers are followed

KPI (Key Performance Indicator) is a type of indicator included in PI (Performance Indicator), which has the same meaning and purpose as PI. Here, the concept of KPI is introduced by introducing PI.

PI is a standard formulated by various industries in order to evaluate the work content and results, and has the characteristics of specificity, quantification, accessibility, relevance, and timeliness.

• Specificity: The indicator is for key, specific performance.

• Quantitative: Indicators are quantitative or behavioral. Verify that data or information for these indicators is available.

• Reachability: The indicator can calculate the result or achieve it by other means.

• Relevance: The indicator must be the result of analysis, research, and negotiation by the relevant provider, user, or executive department, and they must be jointly recognized and committed.

• Timeliness: Indicators are calculated or completed within a specific timeframe.

In the field of wireless communications, PI is an important criterion for evaluating the operation of wireless networks. Common PIs include wireless connection rate and wireless call drop rate. PI feeds back the network's operation and reflects the final work results. Therefore, the quality of a network's PI result is an important basis and objective criterion for judging the quality of a network.

The concepts related to performance indicators are as follows:

• KPI: KPIs are often called key performance indicators. They are the same performance indicators as PI, but they are highly critical. As the reference data for network evaluation, it is calculated by the corresponding counter.

• Counter: A count of various statistics, each count value corresponds to a counter. The number of service counters in the system is relatively large.

• Northbound counter: The counter value reported according to the northbound network management request is a simple calculation report of the local counter. Northbound NMS uses these counters to calculate KPIs.

classification

According to different aspects applicable to measuring network performance, performance indicators can generally be divided into the following categories (here, taking LTE as an example, it may increase or decrease according to the actual network conditions):

• Call accessibility: The user's call access performance, including the user's RRC connection establishment phase and service establishment phase.

• Call retention (Retainability): The performance from the user's successful network access to the normal release phase.

• Availability: The working characteristics of wireless network devices.

• Integrity: The quality of service information provided by eNodeB.

• Mobility: The performance of a user when moving through a wireless network.

• Traffic: Traffic rate of the air interface.

• Radio Resource Characteristics: Radio network performance and utilization of wireless network equipment.

• Transport: Transport-level traffic statistics and SCTP link statistics.

• System resource characteristics (System Resource): the performance of memory and CPU system resources.

Application scenario

The performance index is used to evaluate the performance of the device, which is calculated by several counters. Several indicators have been set in advance according to general application scenarios, and users can also customize indicators. An indicator includes the indicator name, a formula consisting of a counter, a threshold, and type information. Performance indicators are generally used in the following two scenarios:

• Understand the operating status of the network: When querying performance data, users can choose to observe changes in certain indicators over a period of time.

Setting for threshold task: It can be used to define the threshold task. When the indicator value exceeds the alarm threshold set in the threshold task (alarm threshold is divided into four levels: severe, major, minor, warning), a threshold alarm will be triggered.

Key Performance Indicators for IT Services

The key performance indicator method will become an important factor in evaluating the performance of IT services. The key performance indicator method includes measures combined with business needs, data center monitoring, and capacity planning.

The difference between the key performance indicators of IT services and common monitoring indicators is the participation of business leaders. Any enterprise can deploy some monitoring tools to track resources allocated to virtual machines or server bandwidth utilization. These scattered technical factors are helpful to IT technicians, but they are not of great value to the actual application of the enterprise. Enterprises should understand the key performance indicator method and use the key performance indicator method to manage and solve problems.

Although ITIL has a common set of performance recommended KPIs, it does not have a set of KPIs that can be used across all projects. Key performance indicator methods for IT Key performance indicators are generally divided into three categories: service delivery capability key performance indicator method, service key performance indicator method or performance efficiency key performance indicator method and flexibility key performance indicator method (to respond to changes in services) . Enterprise IT service providers should also use KPIs for service availability.

Key Performance Indicators for Service Delivery

· Key performance indicator method for service throughput

The service throughput key performance indicator method is reflected in the user's use or demand of the application or system. Usually refers to the number of transactions or measures of work.
· Response time key performance indicator method

The key performance indicator method indicators of response time include the length of time required to complete the transaction. The response time key performance indicator approach includes multiple infrastructure elements such as servers, networks, and storage. It is closely related to service level agreements (SLAs).
· Key Performance Indicators for Resource Utilization

For example, the ratio of physical or virtual machine resources to the total amount of allocated resources is a method of utilization key performance indicators. If a virtual machine is allocated 10G of memory KPI method, and it uses 10G of memory KPI method, the utilization rate is 100% KPI method.
· Uptime key performance indicator method

The uptime key performance indicator method is a percentage indicator key performance indicator method that measures the application or system uptime. The cluster technology key performance indicator method, the automatic recovery server key performance indicator method and the network failover key performance indicator method all contribute to the uptime indicator KPI method.
Enterprises can use these indicators to calculate their custom service key performance indicator method. For example, if the throughput key performance index method and uptime key performance index method of the equipment are high and the response time index is low, the key performance indicator method will not greatly affect the service score regardless of the resource utilization level. However, if resource utilization and response time increase while throughput or runtime decreases, it will seriously affect the service KPI score.

Key Performance Indicators for Service Efficiency and Performance

· Work efficiency or performance key performance indicator method?
The index of the derived KPI method compares the workload KPI method with the resource allocation KPI method and the resource KPI method. This indicator can tell whether the workload requires resources, whether it is a waste of resources, insufficient resources, or just right.
· System efficiency and performance key performance indicator method

The system performance key performance indicator method is an indicator key performance indicator method that compares the server's allocated resources with available resources, so that the server can achieve the best performance load. From this indicator, it can be seen whether the server is a waste of resources or a resource overload KPI method.
Workload key performance indicator method and system indicator The key performance indicator method is usually the average value calculated by data collection in the data center. The IT team provides the necessary data and key performance indicator methods for investment in new technology projects by quickly measuring the status during work and then comparing its previous status. For example, getting a lower KPI data indicates that it may be necessary to upgrade load balancing or other technical project KPI methods.

Key Performance Indicators for System Agility

· Key performance indicator method for service request response

Service request response KPI method refers to the number of incidents that successfully respond to the service KPI method request by call or other means within an acceptable time and the KPI method is resolved.
· Service processing time TTR key performance indicator method

The TTR KPI method is a measure of the time required to resolve a KPI service request. For example, when a request for a new virtual machine is received, the time for evaluation, the determination of the plan, the time-critical performance indicator method for the entire process of approval to provide a new virtual machine; or the receipt of the resource KPI method allocation Request for changes to the KPI method required for performance testing time.
With the increase in the number of IT service requests, the TTR KPI method will decrease accordingly. It can be seen that the TTR KPI method is flexible and can respond to changing workloads and user needs. If the number of service request and TTR key performance indicator methods increases at the same time, it indicates that there is a clear short-term key performance indicator method for service agility in IT services.

Key performance indicator method for service availability

IT service providers or other IT service organizations that are subject to SLA (Service-Level Agreement) can adopt the SLA key performance indicator method, which is a broad range of indicators.
Service request processing rate KPI

This KPI indicator is a measure of the percentage KPI method that provides available services or help to a service request at an acceptable time.
· Uptime key performance indicator method

The uptime key performance indicator method indicators are reflected in the availability of key performance indicator method services during a billing cycle. During the cycle, it may be inevitable that there will be a certain amount of service interruption by the key performance indicator method, but this interruption time can measure the performance of the SLA's performance and the performance of the key performance indicator method.
· Mean time between failures (MTBF) / mean time to repair (MTTR) key performance indicator method

MTBF and MTTR are two indicators of the time required for failure frequency key performance indicator method and repair of failure key performance indicator method.

· Key performance indicator method for the number of service requests

This KPI indicator is the number of complaints or service requests. Its increase indicates a problem with some systems or platforms.
Collecting all key performance indicator method data, integrating and formulating the results of the key performance indicator method to provide to business executives, it is an important early key performance indicator method early warning for SLA issues. The basic data of the key performance indicator method provided according to this key performance indicator method can serve the improvement of business goals.

Omissions of KPIs

1. KPI subjective indicators, such as user satisfaction. The key performance indicator method is mainly based on the performance and throughput of the application based on objective characteristics, but the key performance indicator method always uses objective measurable parameters, which will lead to the lack of subjective indicators of the key performance indicator method.
2. Key performance indicator method When the leaders of the business and IT team have a consistent view on the key performance indicator method. For example, an enterprise may track statistical system utilization key performance indicator methods and uptime key performance indicator methods. In the early days, the key performance indicator method of utilization rate was more important, but due to the development of the service of the key performance indicator method and the utilization of the key performance indicator method began to achieve the expected goals, the key performance indicator law of uptime became more significant.
3. Key performance indicator method Business leaders have not updated the key performance indicator method based on changes in business models. For example, the construction of a new data center focuses on energy consumption and cost control. Once these goals are achieved, the focus should shift to improving service quality or flexibility.

Choosing key KPIs

Perhaps the most important but overlooked aspect-the key performance indicator approach is closely related to the business. Regardless of the accounting, marketing, sales, and other industries, IT services can manage key performance indicator methods and provide key performance indicator method statistical reports that meet the industry's key performance indicator method application systems and tools. But not every KPI indicator is indispensable or can be used as a measurement target. From company to company, and even from project to project, these KPIs have different effects.
The key performance indicators of IT should be selected to understand the role of these indicators. Businesses that focus on key performance indicator method services will focus on transaction or throughput-related measurements and activities under different load conditions. Instead, companies focus on key performance indicator method indicators that control costs, including availability indicators for computing resources, utilization rates, and system power consumption.
Therefore, over time, selecting measurable and threshold-based mechanisms based on different regions, and implementing and monitoring management tools to measure and select different KPIs are key to a mature IT service. ^[2]