Key Performance Indicators used in ERP performance measurement applications

Abstract

The performance measurement in the World and especially inside the companies' boundaries are getting more important. The ERP applications like SAP and MS Dynamics are applied to several functional areas such as finance, logistics, human resources, etc. As long as diversity and complexity of such ERP applications are increasing in an organization there is a need of successful performance measurement. Different methods and tools are available for analyzing the effectiveness of ERP processes, technologies or even the users, employees. Usage of OLAP Information Cubes in MS AX for information collection and aggregation to define basis for business metrics called Key Performance Indicator (KPI). Similarly, SAP provides BI (Business Intelligent) based solutions for collecting performance relevant information for the business processes, employees, activities or even technical system level measurements. The paper gives definition and a classification of performance indicators, and toward it shows the usability of KPIs in business environments as well.