Applying customer value measurement to a customer loyalty program: Case of implementing a key performance indicator based on customer value

In recent decade customer loyalty programs have become very popular and almost every retail chain seems to have one. Through the loyalty programs companies are able to collect information about the customer behavior and to use this information in business and marketing management to guide decision making and resource allocation. The benefits for the loyalty program member are often monetary, which has an effect on the profitability of the loyalty program. Not all the loyalty program members are equally profitable, as some purchase products for the recommended retail price and some buy only discounted products. If the company spends similar amount of resources to all members, it can be seen that the customer margin is lower on the customer who bought only discounted products. It is vital for a company to measure the profitability of their members in order to be able to calculate the customer value. To calculate the customer value several different customer value metrics can be used. During the recent years especially customer lifetime value has received a lot of attention and it is seen to be superior against other customer value metrics. In this master’s thesis the customer lifetime value is implemented on the case company’s customer loyalty program. The data was collected from the customer loyalty program’s database and represents year 2012 on the Finnish market. The data was not complete to fully take advantage of customer lifetime value and as a conclusion it can be stated that a new key performance indicator of customer margin should be acquired in order to profitably drive the business of the customer loyalty program. Through the customer margin the company would be able to compute the customer lifetime value on regular basis enabling efficient resource allocation in marketing.

A three-stage DEA model to evaluate learning-teaching technical efficiency: Key performance indicators and contextual variables

This study evaluates the technical efficiency of the learning-teaching process in higher education using a three-stage procedure that offers advances in comparison to previous studies and improves the quality of the results. First, it utilizes a multiple stage Data Envelopment Analysis (DEA) with contextual variables. Second, the levels of super efficiency are calculated in order to prioritize the efficiency units. And finally, through sensitivity analysis, the contribution of each key performance indicator (KPI) is established with respect to the efficiency levels without omission of variables. The analytical data was collected from a survey completed by 633 tourism students during the 2011/12, 2012/13 and 2013/14 academic course years. The results suggest that level of satisfaction with the course, diversity of materials and satisfaction with the teacher were the most important factors affecting teaching performance. Furthermore, the effect of the contextual variables was found to be significant.

Developing ontologies for representing data about key performance indicators

Multiple indicators are of interest in smart cities at different scales and for different stakeholders. In open environments, such as The Web, or when indicator information has to be interchanged across systems, contextual information (e.g., unit of measurement, measurement method) should be transmitted together with the data and the lack of such information might cause undesirable effects. Describing the data by means of ontologies increases interoperability among datasets and applications. However, methodological guidance is crucial during ontology development in order to transform the art of modeling in an engineering activity. In the current paper, we present a methodological approach for modelling data about Key Performance Indicators and their context with an application example of such guidelines.

Designing and implementing a performance measurement system in Auto Ribeiro, Lda.

In any business it is very important to measure the performance and it helps to select key information to make better decisions on time. This research focuses on the design and implementation of a performance measurement system in a Portuguese medium size firm operating in the specialized health care transformation vehicles industry. From the evidence that outputs from Auto Ribeiro’s current information system is misaligned with the company’s objectives and strategy, this research tries to solve this business problem through the development of a Balanced Scorecard analysis, although there are some issues, which deserve further development.

Key performance indicators and the balanced scorecard at the Luxury Brand Hotels of Pestana Group

Traditional approaches to evaluate performance in hotels, have mainly used financial measures. Building on Speckbacher et al. (2003), this Work Project aims to design and propose a Balanced Scorecard Type II as a performance measurement/management system for the hospitality industry based on data collected at the Luxury Brand Hotels of Pestana Group. The main contribution is to better align the vision, strategy and financial and non-financial performance measures in this category of hotels, in particular those of Pestana Group, and by doing so, lead their managers to focus on what is really critical and, consequently improve the overall performance.

Key performance indicators for supplier and assortement evaluation

Tutkimuksen tavoite oli selvittää suorituskyvyn mittaamista, mittareita ja niiden suunnittelua tukku- ja jakeluliiketoiminnassa. Kriittisten menestystekijöiden mittarit auttavat yritystä kohti yhteistä päämäärää. Kriittisten menestystekijöiden mittarit ovat usein yhdistetty strategiseen suunnitteluun ja implementointiin ja niillä on yhtäläisyyksiä monien strategisten työkalujen kun Balanced scorecardin kanssa. Tutkimus ongelma voidaan esittää kysymyksen muodossa. •Mitkä ovat Oriola KD:n pitkänaikavälin tavoitteita tukevat kriittisten menestystekijöiden mittarit (KPIs) toimittajan ja tuotevalikoiman mittaamisessa? Tutkimus on jaettu kirjalliseen ja empiiriseen osaan. Kirjallisuus katsaus käsittelee aikaisempaa tutkimusta strategian, toimitusketjun hallinnan, toimittajan arvioinnin ja erilaisten suorituskyvyn mittaamisjärjestelmien osalta. Empiirinen osuus etenee nykytila-analyysista ehdotettuihin kriittisten menestystekijöiden mittareihin, jotka ovat kehitetty kirjallisuudesta löydetyn mallin avulla. Tutkimuksen lopputuloksena ovat case yrityksen tarpeisiin kehitetyt kriittisten menestystekijöiden mittarit toimittajan ja tuotevalikoiman arvioinnissa.

Key performance indicators for successful metadata governance

Metadata in increasing levels of sophistication has been the most powerful concept used in management of unstructured information ever since the first librarian used the Dewey decimal system for library classifications. It remains to be seen, however, what the best approach is to implementing metadata to manage huge volumes of unstructured information in a large organization. Also, once implemented, how is it possible to track whether it is adding value to the company, and whether the implementation has been successful? Existing literature on metadata seems to either focus too much on technical and quality aspects or describe issues with respect to adoption for general information management initiatives. This research therefore, strives to contribute to these gaps: to give a consolidated framework for striving to understand the value added by implementing metadata. The basic methodology used is that of case study, which incorporates aspects of design science, surveys, and interviews in order to provide a holistic approach to quantitative and qualitative analysis of the case. The research identifies the various approaches to implementing metadata, particularly studying the one followed by the unit of analysis of case study, a large company in the Oil and Gas Sector. Of the three approaches identified, the selected company already follows an approach that appears to be superior. The researcher further explores its shortcomings, and proposes a slightly modified approach that can handle them. The research categorically and thoroughly (in context) identifies the top effectiveness criteria, and corresponding key performance indicators(KPIs) that can be measured to understand the level of advancement of the metadata management initiative in the company. In an effort to contrast and have a basis of comparison for the findings, the research also includes views from information managers dealing with core structured data stored in ERPs and other databases. In addition, the results include the basic criteria that can be used to evaluate metrics, in order to classify a metric as a KPI.

Key performance indicators (KPIs) and priority setting in using the multi-attribute approach for assessing sustainable intelligent buildings

The main objectives of this paper are to: firstly, identify key issues related to sustainable intelligent buildings (environmental, social, economic and technological factors); develop a conceptual model for the selection of the appropriate KPIs; secondly, test critically stakeholder's perceptions and values of selected KPIs intelligent buildings; and thirdly develop a new model for measuring the level of sustainability for sustainable intelligent buildings. This paper uses a consensus-based model (Sustainable Built Environment Tool- SuBETool), which is analysed using the analytical hierarchical process (AHP) for multi-criteria decision-making. The use of the multi-attribute model for priority setting in the sustainability assessment of intelligent buildings is introduced. The paper commences by reviewing the literature on sustainable intelligent buildings research and presents a pilot-study investigating the problems of complexity and subjectivity. This study is based upon a survey perceptions held by selected stakeholders and the value they attribute to selected KPIs. It is argued that the benefit of the new proposed model (SuBETool) is a ‘tool’ for ‘comparative’ rather than an absolute measurement. It has the potential to provide useful lessons from current sustainability assessment methods for strategic future of sustainable intelligent buildings in order to improve a building's performance and to deliver objective outcomes. Findings of this survey enrich the field of intelligent buildings in two ways. Firstly, it gives a detailed insight into the selection of sustainable building indicators, as well as their degree of importance. Secondly, it tesst critically stakeholder's perceptions and values of selected KPIs intelligent buildings. It is concluded that the priority levels for selected criteria is largely dependent on the integrated design team, which includes the client, architects, engineers and facilities managers.

Ottimizzazione di un Sistema di Key Performance Indicators per la Divisione Engineering aziendale. Il caso INTERTABA S.p.A.

Il seguente elaborato è la diretta conseguenza di un periodo di stage, pari a cinque mesi, svolto presso l’azienda INTERTABA S.p.A., a Zola Predosa (BO). Il Dipartimento presso cui è stato svolto il tirocinio è l’Engineering. In particolare è stata compiuta un’analisi dei KPIs presenti e sono state proposte delle azioni migliorative. Il lavoro si è sviluppato in tre fasi. Nella prima fase è stata fatta un’analisi dei KPIs attuali per ciascuna funzione appartenente all’Engineering: Engineering Support, Project Engineering, Plant & Utilities Maintenance, Technical Warehouse e General Services. Nella seconda fase sono state descritte, per ciascuna funzione, alcune proposte migliorative per i KPIs presenti. Infine, per alcune funzioni, sono state proposte alcune iniziative in merito all’implementazione di nuovi KPIs.

Assessment of innovative measures implemented in European bus systems using key performance indicators

This paper reports the results of the assessment of a range of measures implemented in bus systems in five European cities to improve the use of public transport by increasing its attractiveness and enhancing its image in urban areas. This research was conducted as part of the EBSF project (European Bus System of the Future) from 2008 to 2012. New buses (prototypes), new vehicle and infrastructure technologies, and operational best practices were introduced, all of which were combined in a system approach. The measures were assessed using multicriteria analysis to simultaneously evaluate a certain number of criteria that need to be aggregated. Each criterion is measured by one or more key performance indicators (KPI) calculated in two scenarios (reference scenario, with no measure implemented; and project scenario, with the implementation of some measures), in order to evaluate the difference in the KPI performance between the reference and project scenario. The results indicate that the measures produce a greater benefit in issues related to bus system productivity and customer satisfaction, with the greatest impact on aspects of perceptions of comfort, cleanliness and quality of service, information to passengers and environmental issues. The study also reveals that the implementation of several measures has greater social utility than very specific and isolated measures.

A road safety performance indicator for vehicle fleet compatibility

This paper discusses the development and the application of a safety performance indicator which measures the intrinsic safety of a country's vehicle fleet related to fleet composition. The indicator takes into account both the ‘relative severity’ of individual collisions between different vehicle types, and the share of those vehicle types within a country's fleet. The relative severity is a measure for the personal damage that can be expected from a collision between two vehicles of any type, relative to that of a collision between passenger cars. It is shown how this number can be calculated using vehicle mass only. A sensitivity analysis is performed to study the dependence of the indicator on parameter values and basic assumptions made. The indicator is easy to apply and satisfies the requirements for appropriate safety performance indicators. It was developed in such a way that it specifically scores the intrinsic safety of a fleet due to its composition, without being influenced by other factors, like helmet wearing. For the sake of simplicity, and since the required data is available throughout Europe, the indicator was applied to the relative share of three of the main vehicle types: passenger cars, heavy goods vehicles and motorcycles. Using the vehicle fleet data from 13 EU Member States and Norway, the indicator was used to rank the countries’ safety performance. The UK was found to perform best in terms of its fleet composition (value is 1.07), while Greece has the worst performance with the highest indicator value (1.41).

Contributions to the performance analysis of continuum parallel robots

Continuum parallel robots (CPRs) are manipulators employing multiple flexible beams arranged in parallel and connected to a rigid end-effector. CPRs promise higher payload and accuracy than serial CRs while keeping great flexibility. As the risk of injury during accidental contacts between a human and a CPR should be reduced, CPRs may be used in large-scale collaborative tasks or assisted robotic surgery. There exist various CPR designs, but the prototype conception is rarely based on performance considerations, and the CPRs realization in mainly based on intuitions or rigid-link parallel manipulators architectures. This thesis focuses on the performance analysis of CPRs, and the tools needed for such evaluation, such as workspace computation algorithms. In particular, workspace computation strategies for CPRs are essential for the performance assessment, since the CPRs workspace may be used as a performance index or it can serve for optimal-design tools. Two new workspace computation algorithms are proposed in this manuscript, the former focusing on the workspace volume computation and the certification of its numerical results, while the latter aims at computing the workspace boundary only. Due to the elastic nature of CPRs, a key performance indicator for these robots is the stability of their equilibrium configurations. This thesis proposes the experimental validation of the equilibrium stability assessment on a real prototype, demonstrating limitations of some commonly used assumptions. Additionally, a performance index measuring the distance to instability is originally proposed in this manuscript. Differently from the majority of the existing approaches, the clear advantage of the proposed index is a sound physical meaning; accordingly, the index can be used for a more straightforward performance quantification, and to derive robot specifications.