Business Performance Management
It is a set of management and analytic processes that enables the management of an organization's performance to achieve one or more preselected goals.It allows companies to more efficiently collect data from their various sources, analyze it and take appropriate action. It provides the data to help companies monitor efficiency of projects and employees against operational targets. It also can be used to analyze risk and predict outcomes of various scenarios, including mergers and acquisitions. Business performance management involves consolidation of data from various sources, querying, and analysis of the data, and putting the results into practice.
Business performance management has three main activities:
Ø Selection of goals.
Ø Consolidation of measurement information relevant to an organization’s progress against these goals.
Ø Interventions made by managers in light of this information with a view to improving future performance against these goals.
Application software in BPM
People working in BI have developed tools that ease the work of business performance management, especially when the business-intelligence task involves gathering and analyzing large amounts of unstructured data.
Following are the tool categories mainly used in BPM
Ø OLAP— online analytical processing, sometimes simply called "analytics
Ø Score carding
Ø Dashboard
Ø Data Visualization
Ø Data Warehouses
Ø Document Warehouses
Ø DM — data mining
Ø BPO — business performance optimization
Ø EPM — enterprise performance management
Ø EIS — executive information systems
Ø DSS — decision support systems
Ø MIS — management information systems
Ø SEMS — strategic enterprise management software
BPM Life-cycle
It is grouped into six categories:
Ø Vision
Ø Design
Ø Modeling
Ø Execution
Ø Monitoring
Ø Optimization.
Functions are designed around the strategic vision and goals of an organization. Each function is attached with a list of processes. Each functional head in an organization is responsible for certain sets of processes made up of tasks which are to be executed and reported as planned. Multiple processes are aggregated to function accomplishments and multiple functions are aggregated to achieve organizational goals.
It is a set of management and analytic processes that enables the management of an organization's performance to achieve one or more preselected goals.It allows companies to more efficiently collect data from their various sources, analyze it and take appropriate action. It provides the data to help companies monitor efficiency of projects and employees against operational targets. It also can be used to analyze risk and predict outcomes of various scenarios, including mergers and acquisitions. Business performance management involves consolidation of data from various sources, querying, and analysis of the data, and putting the results into practice.
Business performance management has three main activities:
Ø Selection of goals.
Ø Consolidation of measurement information relevant to an organization’s progress against these goals.
Ø Interventions made by managers in light of this information with a view to improving future performance against these goals.
Application software in BPM
People working in BI have developed tools that ease the work of business performance management, especially when the business-intelligence task involves gathering and analyzing large amounts of unstructured data.
Following are the tool categories mainly used in BPM
Ø OLAP— online analytical processing, sometimes simply called "analytics
Ø Score carding
Ø Dashboard
Ø Data Visualization
Ø Data Warehouses
Ø Document Warehouses
Ø DM — data mining
Ø BPO — business performance optimization
Ø EPM — enterprise performance management
Ø EIS — executive information systems
Ø DSS — decision support systems
Ø MIS — management information systems
Ø SEMS — strategic enterprise management software
BPM Life-cycle
It is grouped into six categories:
Ø Vision
Ø Design
Ø Modeling
Ø Execution
Ø Monitoring
Ø Optimization.
Functions are designed around the strategic vision and goals of an organization. Each function is attached with a list of processes. Each functional head in an organization is responsible for certain sets of processes made up of tasks which are to be executed and reported as planned. Multiple processes are aggregated to function accomplishments and multiple functions are aggregated to achieve organizational goals.
- Design : It encompasses both the identification of existing processes and the design of "to-be" processes. Good design reduces the number of problems over the lifetime of the process. The aim of this step is to ensure that a correct and efficient theoretical design is prepared. The existing process and the design of new process for various application will have to synchronise as such will not effect the business in major outage. The business as usual is the standard to be attained when design of process for multiple systems is considered.
- Modeling : It introduces combinations of variables which determine how the process might operate under different circumstances.
- Execution : One of the ways to automate processes is to develop or purchase an application that executes the required steps of the process; however, in practice, these applications rarely execute all the steps of the process accurately or completely. Another approach is to use a combination of software and human intervention; however this approach is more complex, making the documentation process difficult.
- Monitoring: Monitoring encompasses the tracking of individual processes, so that information on their state can be easily seen, and statistics on the performance of one or more processes can be provided.
- Optimization: Process optimization includes retrieving process performance information from modeling or monitoring phase; identifying the potential or actual bottlenecks and the potential opportunities for cost savings or other improvements; and then, applying those enhancements in the design of the process. Overall, this creates greater business value.