I get many questions on dashboards and scorecards and the role these tools play in BI (Business Intelligence). If we use Forrester’s definition of BI — a set of methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information — then we see that dashboards are just the tip of the BI iceberg. One cannot build “just a dashboard”, without considering, architecting and implementing many other necessary BI layers and components such as data integration (ETL, data quality, etc), analytics (OLAP), metrics management, and many supporting components such as collaboration, knowledge management, metadata and master data management, and others. So that’s the first key takeaway: do not be fooled by 2nd tier dashboard vendor claims that one can implement an enterprise wide dashboard easily and inexpensively.
Let’s start with definitions, since I see the terms dashboards and scorecards used interchangeably:
Dashboards are just one style of interactive user interface, designed to deliver historical, current, and predictive information typically represented by key performance indicators (KPIs) using visual cues to focus user attention on important conditions, trends and exceptions.
Scorecards are a type of a dashboard which link KPIs to goals, objectives and strategies. Many scorecards follow a certain methodology, such as Balanced Scorecard, Six Sigma, Capability Maturity Models, etc.
Other types of dashboards include Business Activity Monitoring (BAM) dashboards and visualizations of data / text mining operations.