Practical Guide to Designing KPI Bus Matrices for Business Analysts and Data Architects

Introduction

Bus matrices are powerful tools that translate an organization’s data needs into a format that supports the development of an efficient data model. They help ensure business leaders receive meaningful insights while guiding data architects in defining the right structures with minimal redundancy.

What is a Bus Matrix?

A bus matrix is a two-dimensional table that maps:

• The KPIs relevant to a business function
• The dimensions (slicers) required to analyze those KPIs

A properly specified bus matrix assures that the business is provided with the necessary insights, by aligning KPIs with the dimensions needed to fully understand their meaning.

A bus matrix is also a valuable input for data architects, by revealing the attributes needed across multiple KPIs. This helps forestall the creation of data structures with redundant data. Bus matrices are useful whenever a new data structure is being created, whether because data is migrating or if new KPIs are being introduced.

Key Definitions:

• KPI (Key Performance Indicator) – The measures a business uses to assess success or failure in meeting a business objective. A simple example might be Sales.
• Dimension – An attribute that describes some aspect of an entity. For example, Color and Model would be dimensions of an automobile.
• Slicers - A subset of dimensions, representing those dimensions which are chosen as interactive filters. For example, a car manufacturer would want the ability to look at Auto Sales by model of automobile. These appear on websites and dashboards as a means of focusing on specific aspects of a KPI.

How a Bus Matrix Works

The concept of a KPI bus matrix is simple. A vertical column lists the KPIs in question, while horizontal columns specify the slicers. By identifying the slicers across all KPIs, data architects can find the commonalities across the KPIs and develop efficient data structures with minimal redundancy. Here is a simple example, expanding on the example of a car company:

In any business process, you are likely to find that they are managed through a small number of KPIs that are sliced in a great number of ways.

How to Develop a Bus Matrix

1. Define the Business Function that the Bus Matrix Addresses

Typically, any large business utilizes hundreds of KPIs. You need to be clear on the scope of the KPIs you’re analyzing, to focus your efforts. There may be broad KPIs used for an entire enterprise, or very narrow KPIs of use within a single department.

2. Identify the KPIs

KPIs are the numbers a business unit uses to measure its own performance. Business SMEs should be knowledgeable about the numbers they rely on for this purpose, and if a business unit has dashboards available, they may provide a quick means of finding the current KPIs.

3. Capture the KPI’s Attributes and Meaning
   1. Some understanding of the KPI’s meaning and derivation is needed to ensure data architects are fully informed. Ideally the following elements should be captured:
      1. Name
      2. Definition
      3. Algorithm used to produce the KPI
      4. Business SME or Owner
      5. Data source(s)
      6. Data update frequency
   2. This phase of analysis will be the most time-consuming but is the foundation for a useful bus matrix.
      
      
4. Determine the Needed Slicers

Existing dashboards or reports may give you good insights into the slicers needed in a business unit. Please remember that you are mapping slicers across all KPIs within the business unit, not just those for a single KPI, so that data architects can be clear about how to properly structure the data. Also, if you’re working from a body of existing slicers, be sensitive to the possibility that the current body of slicers might not be all that the business unit would prefer.

5. Validate Your Findings with Stakeholders

Review your findings with business stakeholders to confirm their needs are addressed by the bus matrix, and also reach out to the data architects to ensure what you’re providing meets their needs.This step ensures alignment and prevents rework later in the project.

Conclusion

A bus matrix serves as a vital bridge between business needs and technical implementation. It helps ensure:

• Business transparency
• Efficient data architecture
• Consistent and accurate reporting

For Business Analysts, Data Architects, and BI teams, the bus matrix is an indispensable tool, especially when developing new KPIs, migrating data, or modernizing analytics systems.