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ACCA Strategic Professional · Advanced Performance Management · Technology and information systems

Halvard Foods collects sensor data on 40 production lines. Management considers three proposals: (1) store all raw data indefinitely in case it proves useful; (2) define the decisions each KPI will support, then collect and retain only data that informs those KPIs; (3) report every available metric to all supervisors weekly. Which approach best aligns data collection with performance insight, and why is the main alternative weaker?

Proposal 2 is best: it begins with the decisions and KPIs the data must support, so only relevant data is gathered and kept. Storing everything indefinitely adds cost, governance burden and noise without a clear purpose, while reporting every metric overwhelms supervisors. Data quality controls are still required.

  1. AProposal 1, because more data always improves accuracy of insight
  2. BProposal 3, because transparency of every metric ensures goal congruence
  3. CProposal 2, because data is linked to decisions; proposal 1 adds storage cost and noise without a defined purposeCorrect
  4. DProposal 2, because it removes the need for data quality controls

Explanation

Starting from decisions and KPIs keeps data relevant and manageable. Proposal 1 raises cost, governance burden and noise with no purpose; proposal 3 causes information overload. Option D is wrong because quality controls are still needed whichever proposal is chosen.

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