Reasoning with Key Performance Indicators

Business organizations continuously monitor their environments, looking out for opportunities and threats that may help/hinder the fulfilment of their objectives. We are interested in strategic business models that support such governance activities. In this paper, we focus on the concept of composite indicator and show how it can be used as basic building block for strategic business models that support evaluation and decision-making. The main results of this paper include techniques and algorithms for deriving values for composite indicators, when the relationship between a composite indicator and its component indicators cannot be fully described using well-defined mathematical functions. Evaluation of our proposal includes an implemented Eclipse-based prototype tool supporting these techniques and two ongoing case studies.