Executive Dashboards: The Key to Unlocking Double Digit Profit Growth

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Aberdeen's latest research shows that companies actively building and using dashboards are able to gain visibility into metrics that are driving their business, and as a result are achieving drastically higher performance than their peers. From the executive management team down to the line-level business managers and "front-line" employees, the research shows that employees of all levels and functions are deriving value from the business visibility that dashboard tools provide.

Best-in-Class companies are employing both strategic and tactical dashboard solutions in order to drive double digit improvements in profitability and have achieved substantial increases in customer service and sales performance. This benchmark report is based on feedback from 285 organizations globally.

Figure 1: Top Pressures Driving Dashboard Initiatives

Source: Aberdeen Group, May 2009

Best-in-Class Performance

Aberdeen used three key performance criteria to distinguish Best-in-Class companies. That performance relative to their peers was as follows:

  • A 24% average year-over-year increase in operating profit, compared with a 3% increase for the Industry Average and a 27% decrease for Laggards
  • An 8.3% average year-over-year improvement in customer service, compared with a 2.3% improvement for the Industry Average and a 1.0% increase for Laggards
  • An 8.4% average year-over-year improvement in sales performance, compared with a 2.3% improvement for the Industry Average and a 0.6% decline for Laggards

Competitive Maturity Assessment

Survey results show that the firms enjoying Best-in-Class performance are:

  • 2.8-times more likely than Laggards to have clearly defined business unit performance metrics
  • 1.7-times more likely than the Industry Average to have a process for prioritizing data for user access
  • 60% more likely than all other companies to leverage performance reporting dashboards

Figure 2: Best-in-Class Dashboard Technologies in Use

Source: Aberdeen Group, May 2009

Required Actions

Whether a company is trying to move its performance in dashboard usage from Laggard to Industry Average, or Industry Average to Best-in-Class, the following actions will help spur the necessary performance improvements:

  • Create a training program to educate end-users on dashboards
  • Develop the ability to track the utilization of dashboard tools
  • Examine the use of outward-facing customer dashboards

To read the full report, click here.

More by Michael Lock

About Aberdeen Group

Aberdeen Group is a leading IT market analysis and positioning services firm that helps Information Technology vendors establish leadership in emerging markets. Aberdeen helps clients identify new market opportunities, enter those markets successfully, and accelerate the adoption of new technologies.