Running head: KPIS AND METRICS

KPIs and Metrics

Students Name
Institution Affiliation

KPIS AND METRICS

2
KPIs and Metrics

Introduction
Historical data remains the best option to forecast. However, there is need to improve
historical data to get better results. Studies show that different measure has been used, but none
has ever improved the reliability and effectiveness of historical data (Fan & Hyndman, 2012).
This paper will discuss the best measure that can be used to improve historical data.
Combining with Current Source
Sandwiching historical data with current sources of information is one of the best
measures to render them useful for future predictions. It can be implemented using contemporary
models that will use historical data as a dependent variable and a constant in the model equation
(Gujarati, 2012). This will help boost the effective of historical data hence make them
sustainable in future predictions.
Exempt Biased Historical Data
Limiting biased data is considered as a way of getting only reliable data to be used for
predictions. Studies show that biased historical data is the main cause of forecasting failures in
the world. Therefore, if such information or data is excluded from the rest, then there is a high
probability that historical data will help support future predictions (Fan & Hyndman, 2012).
Improving Data Collection Strategies
It is considered that todays data will be considered historical data tomorrow and will be
used for future for future predictions. Thus, to improve their use by making them more reliable
and effective, improvement in data collections should be emphasized (Gujarati, 2012). Most
future predictions fail because historical data were not properly collected or poor strategies were
used during data collection.

KPIS AND METRICS

Conclusion
Historical data may be unreliable, but remains the best metric way to evaluate and
measure assumptions about the future. If the above measures are implemented, then there will be
no risk of using historical data to future predictions.

KPIS AND METRICS

References
Fan, S., & Hyndman, R. J. (2012). Short-term load forecasting based on a semi-parametric
additive model. Power Systems, IEEE Transactions on,27(1), 134-141.
Gujarati, D. N. (2012). Basic econometrics. Tata McGraw-Hill Education.