Operational Metrics
Definition
Operational Metrics measure how well a business runs day-to-day. The four core operational metrics are cost per transaction, throughput, error rate, and time to decision.
Why it matters
The business case for Operational Metrics.
Vanity AI metrics, pilots launched, models deployed, do not predict business outcomes. Operational metrics do. They are the only honest measurement of whether AI is actually working.
Related terms in Operational Intelligence
Operational Intelligence
Operational Intelligence is the practice of embedding AI directly into business operations to drive measurable, repeatable outcomes. It is the real-time loop between data, decision, and action.
Business Intelligence (BI)
Business Intelligence is the retrospective analysis of historical data to understand what happened in a business and why. BI produces reports and dashboards.
Real-Time Decision Making
Real-Time Decision Making is the ability to evaluate data and execute decisions within the operational window where those decisions matter, typically seconds to minutes.
Workflow Automation
Workflow Automation is the use of technology to execute defined business processes with minimal human intervention. AI workflow automation extends this to decision-heavy workflows that previously required human judgment.
Decision Intelligence
Decision Intelligence is the discipline of designing systems that produce better decisions by combining data, analytics, and AI with explicit decision frameworks.