In the world of "operational business intelligence", there are three main areas in my opinion.
- Corporate Performance Management (CPM) or Business Performance Management (BPM)
- Business Process Management (BPM - yep another BPM))
- Business Activity Monitoring (BAM))
Business Activity Monitoring (BAM) and Business Process Management (BPM) are different than Corporate Performance Management (CPM) or Business Performance Management (BPM) otherwise known as the practice of "balanced scorecards". Balanced scorecards look at how a particular metric, or series of metrics, relates to itself and three (3) other strategic components. BPM and BAM look at, or into, a particular process with the goal of monitoring or improving the process within itself, but not necessarily how it relates to the overall strategy of the company.
Here's a breakdown of they relate:
- Corporate Performance Management (CPM) or Business Performance Management (BPM) Balanced Scorecards provide the highest level presentation that includes four (4) strategic aspects.
- Example - A car dashboard. The speedometer (internal process), gas indicator (financial), clock (customer), GPS (employee learning) all provide information on the "strategic" performance of the car. However, if you have a police officer asking you questions, you may not care where you are or what time it is... You may just care how fast you were going back about three miles.
- Business Process Management (BPM) looks at a process from a "black box", or mid-level, perspective and how that process is performing
- Example - Again our car dashboard, but this time just the speedometer. You know how fast you are going and can compare that to past performance. However without the tachometer, you do not know how the engine is performing relative to your speed. For those who drive automatics, this is not much of a concern. However for those of us who drive manual transmissions, this is a key component of how to operate a car.
- Business Activity Monitoring (BAM) looks into a process from a "white box", or lowest level, perspective and looks at the component parts of the process to determine how a process is performing.
- Example - Back to the car dashboard, but now with speedometer, tachometer, engine temp, etc. You now know how the engine is performing and can tune the engine processes to meet existing or new standards for performance
Each of these can be independent of each other, but they can also build upon each other very easily since they use many of the same data sources and presentation methodologies.
In the future, I see business process management (BPM) and BAM to start to merge as concepts since they are so closely related at this point in time.
Posted January 30, 2007 10:15 AM
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