Measure

Definition

A measure is a quantitative value that is used to assess, evaluate, or compare data within a business intelligence context. It often represents key performance indicators (KPIs) and is typically stored in fact tables, enabling multidimensional analysis and data aggregation. Measures can be aggregated using functions such as sum, average, or count, allowing users to analyze performance across various dimensions.

5 Must Know Facts For Your Next Test

1. Measures are often numeric values that can be calculated from raw data in databases and are essential for reporting and analysis.
2. In an OLAP cube, measures are typically displayed in the data cells while dimensions are used to categorize the data, allowing users to perform slice-and-dice operations.
3. Common examples of measures include sales revenue, profit margins, and transaction counts which help in tracking performance over time.
4. The accuracy and relevance of measures depend on the quality of underlying data, making data cleansing and preparation critical steps in the analysis process.
5. Measures can be computed at different levels of granularity, meaning they can provide detailed information or aggregate insights based on user-defined criteria.

Review Questions

• How do measures relate to fact tables and dimension tables in a data warehouse?
  • Measures are stored in fact tables, which hold quantitative data that can be analyzed and aggregated. These fact tables are connected to dimension tables, which provide descriptive attributes for the measures. This relationship enables users to perform multidimensional analysis by slicing and dicing the measures according to various dimensions such as time, location, or product categories.
• In what ways can OLAP cube operations enhance the analysis of measures?
  • OLAP cube operations allow users to interactively analyze measures through various operations such as slicing, dicing, drilling down, and rolling up. These operations enable users to view measures from different perspectives, making it easier to identify trends, patterns, and anomalies in the data. For example, by drilling down into sales revenue measures by month or region, users can gain deeper insights into performance drivers.
• Evaluate the impact of selecting appropriate measures on business intelligence reporting and decision-making.
  • Choosing the right measures is crucial for effective business intelligence reporting because it directly influences the insights gained from the analysis. Appropriate measures align with business goals and objectives, providing relevant information for decision-making. If measures do not accurately reflect performance or are not aligned with strategic goals, organizations may make misguided decisions based on faulty interpretations of their data. Thus, selecting meaningful measures enhances analytical capabilities and drives better business outcomes.

Related terms

Fact Table: A central table in a star schema of a data warehouse that contains quantitative data for analysis, consisting of measures and foreign keys to dimension tables.

Dimension Table: A table in a data warehouse schema that contains descriptive attributes related to the measures in fact tables, providing context for analysis.

KPI (Key Performance Indicator): A measurable value that demonstrates how effectively an organization is achieving key business objectives, often derived from measures.