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Process documentationDefinition of KPIs Locate this document in the navigation structure


KPIs are defined by organizations at the beginning of the financial year. These KPIs allow an organization to monitor their current achievements against the goals and targets that they have set for a particular year. The organization can then initiate the necessary steps to achieve the required target.

Business KPIs that an organization has set are translated to technical KPIs by the relevant administrators within the organization, who collect data to define these KPIs.

Organizational level KPIs are then filtered down to the strategic business unit level. These business unit levels work towards the required goals to contribute to the KPIs set for the organization.


  1. The company leader sets high-level business goals to be achieved by the end of the financial year.

  2. The analyst translates these goals into KPIs that must be monitored to ensure that these high-level goals are met.

  3. The relevant manager transfers these organizational KPIs into strategic business unit level KPIs.

  4. The technical administrator technically defines the KPI in the company systems by defining the data source and measures to aggregate data.

  5. The technical administrator defines a KPI using the KPI modeler for SAP Smart Business.