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Business Performance Management
The Common Definition of Business Performance Management
According to the BPM Standards Group, Business Performance Management (BPM) is a set of integrated, closed-loop management and analytic processes, supported by technology,
that address financial as well as operational activities. For example, BPM may be the tools to reduce operational risk by closing the loop
between sales and operational processes and financial processes.
BPM is an enabler for businesses in defining strategic goals, setting plans to meet those goals, and then measuring and managing
performance against those goals.
Core technologies support the four major activities:
- Applications that enable the building of metrics and that enable strategic collaboration/distribution of information, as we see in the
yellow rectangle “Enabling technologies” and in the “Strategize” box.
- Planning technologies allow managers in divisions and departments to set goals, model your business, build programs, and define budgets.
These are planning, forecasting, and process modeling applications.
- For monitoring and analyzing, companies will use consolidation, reporting, scorecarding, multi-dimensional analysis.
- Alerting and corrective actions include technologies that automate the reaction to issues or variances and improve the timeliness of
corrective actions, such as alerting and dashboards that provide visual cues.
In addition, a BPM solution must also allow information to flow between different parts of the organization, from operational systems to
planning systems and between functions within an organization. For example, metrics from transactional and analytical systems need to flow
into the BPM solution when there is an impact on overal performance.
Supporting infrastructure for BPM includes:
- A data infrastructure – for data integration and data warehousing (the BPM Datamart)
- A capability to extract, transform and load data from enterprise systems to the BPM solution
- An analytics infrastructure – with reporting tools, analysis tools, data mining, integration with spreadsheets, dashboards, and
monitoring
- An IT infrastructure to store and manage data and transactions.
TM1 provides all this in a single application (not “stitched together”)
- Browser, spreadsheet and third-party interfaces
- Tools for monitoring and analyzing: Reporting & query applications, consolidation, multi-dimensional analysis, scorecards, dashboards
- Workflow for Collaboration
- Planning and budgeting, Process modeling for the planning phase
- The Datamart for data storage and structures
- The ETL capability for data extraction and maintenance
Learn more about TM1:
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