Business Performance Management
Discussion Topic #1:
Business Performance Management (BPM)
BPM encompasses five basic processes: Strategize, Plan, Monitor, Act and Adjust. Select one of these processes and research the types of Software tools and applications that are available to support it.
List and briefly describe the phases of the DMAIC model and compare the five steps to the five BPM processes
TOPIC:Business Performance Management
Read Pearson Chapter 3 – Descriptive Analytics II: Business Intelligence and Data Warehousing
Business performance management (BPM) refers to the business processes, methodologies, metrics, and technologies used by enterprises to measure, monitor, and manage business performance.
BPM is also known as corporate performance management (CPM), enterprise performance management (EPM), and strategic enterprise management (SEM) and has evolved to become a type of BI tool/technique. The most significant differentiator of BPM from any other BI tools and practices is its strategy focus. BPM encompasses a closed-loop set of processes that link strategy to execution thus optimizing business performance.
Because business performance management activities in large organizations often involve the collection and reporting of large volumes of data, many software vendors, particularly those offering business intelligence tools, market products intended to assist in this process. Because of this marketing effort, business performance management is often incorrectly understood as an activity that necessarily relies on software systems to work, and many definitions of business performance management explicitly suggest software as being a definitive component of the approach.
Since 1992, business performance management has been strongly influenced by the rise of the balanced scorecard framework, often depicted as a dashboard. It is common for managers to use the dashboard and balanced scorecard framework to clarify the goals of an organization, to identify how to track them, and to structure the mechanisms by which adjustments will be triggered to improve on the corporate strategy and direction.
In the past, owners have sought to drive strategy down and across their organizations, transform these strategies into actionable metrics and use analytics to expose the cause-and-effect relationships that, if understood, could give insight into quality decision-making.