Applying Business Goals to Machine Learning Metrics

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By Becks Simpson for Mouser Electronics

Published March 28, 2025

With the hype around machine learning (ML) and the rush to transform businesses with it, unsurprisingly, not all ML projects have succeeded. Often, a “solution before the problem” mentality leads to poorly defined requirements and goals for using ML. Failing to understand why ML should be used and how business metrics will be impacted may lead to proof of concept (POC) work that takes up valuable time without delivering results.

This article addresses ways companies can avoid pitfalls when incorporating ML into products and processes by understanding their overall goals and linking them to relevant business metrics. Applying these metrics sets the stage for assessing ML performance as the POC work progresses. Connecting those indicators to appropriate ML metrics based on the task or use case for the POC and developing a short roadmap for the research and development direction will increase the likelihood of success.

Distilling Goals into Business Metrics

Businesses usually decide to introduce ML into their processes for several overarching reasons. These reasons typically include improving revenue by increasing the team’s productivity, elevating the success rate of a particular aspect of the business, improving customer outcomes by reducing the time to respond to incoming information, or reducing costs associated with errors or other waste. These reasons tie into more fine-grained business metrics that should be identified when starting an ML project. For example, if the goal is to increase revenue by enhancing the team’s or company’s capabilities, then relevant productivity measurements might relate to sales and marketing metrics such as quota attainment rate, cost per lead, or net sales revenue. For improving customer success, relevant metrics may include lost customers (also known as churn), customer satisfaction scores, or the rate of lost deals.

Most importantly, identifying these business needs via correct metrics is crucial when developing projects rather than identifying solutions without understanding the concrete reasons behind their necessity. Deciding to implement an ML process for triaging support tickets or summarizing long documents won’t make sense unless the impact of doing so is effectively measured as a baseline.

Matching Business Metrics to ML Equivalents

Once appropriate business metrics have been chosen for the project based on the overall goals, they should be matched to one or more ML metrics based on the tasks identified for ML to tackle. Capturing an improvement on the business side typically requires a cluster of metrics for the ML side. For example, suppose the goal is to increase productivity by accelerating a team working on a particular process, perhaps quality assurance of software pre-deployment. In that case, the business metrics might be the time from start to end of testing, the number of elements tested, and the number of tests run per session. However, equally important metrics may include the number of bugs caught before deployment and the number of previously passing tests that now fail.

When establishing an ML process to handle some of the quality assurance team’s work, the metrics are not just latency or how fast the model can assess expected versus actual output for discrepancies but also model accuracy—specifically, the number of false positives and negatives. Because the model’s mistakes may need to be assessed by a human, too many flagged issues will add to the team’s workload, and too many missed issues will result in work for the development team. Alongside having a benchmark of the team’s current performance based on the business metrics discussed, the baseline accuracy is also useful for assessing whether ML performs at least as well to be considered valid.

Depending on the use case or task and the type of output required, the ML metrics may not be as straightforward as accuracy or error rate. However, there usually exists some way of measuring how well an ML process is performing as long as one can measure how well things work without it. Natural language processing (NLP) is an example of one domain with less direct metrics. For instance, tasks like summarizing text or generating content appear to be difficult to assess on the surface. Still, if developers spend time building a dataset of input text and examples of the desired output, then metrics such as Recall-Oriented Understudy for Gisting Evaluation (ROUGE) can be used. ROUGE and other metrics measure things like the overlap of words between desired and actual output to account for the fact that no single “correct” answer exists; rather, answers vary according to levels of correctness.

Building the POC Roadmap

Finally, with the ML metrics defined, the process of building a brief but detailed roadmap of the POC implementation and experimentation approaches can start. This should involve dividing the whole task into smaller, simpler pieces that are quick to validate in terms of success with an ML model, which could include triaging urgent versus non-urgent support tickets instead of a more complicated set of classifications. Additionally, a preliminary literature review or prior art search should be conducted to identify a series of approaches with increasing complexity in case the simpler options fail at the task. Implementing this strategy starts with off-the-shelf models or those available through a third-party application programming interface (if allowable in the business context), then moves to architectures that can be adjusted by fine-tuning or retraining for the task and finishes with those that need to be implemented from scratch with perhaps more complicated training regimes. The costs for each approach can be approximated to provide a fair assessment of the return on investment (ROI) for the ML project based on the expected value. Doing so highlights whether some POC directions will be prohibitively expensive and helps set the cutoff point for abandoning the project if the best performance achieved is insufficient.

Conclusion

Introducing ML into a company’s processes or products helps achieve overarching business goals like improving productivity or reducing costs and errors. However, to ensure success, these ML projects need to start correctly. Measuring impact via the appropriate business metrics is key, followed by identifying the right ML metrics to show that developed models will provide the expected value because they work as well as required. Once these details are established, building a roadmap to capture the direction of POC implementation will keep the project on track. This roadmap will also ensure that ROI versus effort is tracked so that a sufficient point of abandonment can be identified that balances the two. These best practices are the first of several steps required to transition from business goals to ML POC to production.

To learn more about the other important stages involved in developing an ML POC in an agile but robust fashion and how to put the resulting outputs into production, explore Mouser’s blog series on moving from proof of concept to production. There, you will discover how to identify and establish a dataset for the project, set up experimentation tooling, develop resources and approaches for POC-building, including open-source models, create guidelines and focus points when extending to a production-ready version, as well as consider what to anticipate and monitor post-deployment.