Enterprise Business Performance Management (BPM/EPM)

Business Performance Management (BPM/EPM) is about measuring and managing the performance of ALL business activity constituents contributing to the organization’s mission—namely people, processes, and technology—with the purpose of maximizing efficiency, effectiveness and profitability.

In this context, there are two fundamental matters to consider:

• Mechanism used to collect and report performance measures
• Diversity of measure sources and their synergistic integration

Mechanism Used to Collect and Report Performance Measures

In underdeveloped organizations, performance information collection relies on ad hoc methods based around phone calls, messages, emails and office spreadsheet software.

In more refined organizations, there are point abilities to consume predefined measures and reporting features of specific business function software such as ERP or CRM. Nevertheless, such silo reports are still manually combined or sliced and diced into spreadsheets, along with other manually collected and compiled data, and presented as performance scorecards to higher levels of management.

Diversity of Measure Sources and Their Synergistic Integration

Modern organizations rely on a large, enriched, and diversified data ecosystem to conduct business activities. These ecosystems include various forms of on-premises and cloud-based structured, semi-structured, unstructured and big data sources. In these environments, collecting, reporting and distributing performance information across the organization using rudimentary methods—besides being labor-intensive—is prone to critical gaps and challenges, including:

• Standardization, integration, transformation and aggregation of measures
• Incoherence and inconsistence of measures; no single version of the truth
• Confidentiality, governance and compliance of measures; life cycle and traceability requirements

While these are far from being the only shortcomings to consider, organizations have made attempts to resolve these issues using business intelligence (BI) solutions, namely data warehouses, data lakes and data lakehouses.

Conventional IT Pyramid: BPM/EPM, Analytics, Business Intelligence and Reporting

Shortcomings of Business Intelligence (BI) Solutions

Business Intelligence (BI) projects have frequently ended with a disappointment either from project failure or from the inability to influence organizational performance through project results. Collected and distributed information typically represented after the fact point performance results that did not clearly indicate what needs to happen to improve performance. In fact, performance measures are still often mistakenly considered key performance indicators or KPI's.

In a nutshell, BI solutions exhibit the following shortcomings in a performance management context:

• Disproportionate total cost of ownership (TCO)—cost of IT talent, cost of infrastructure, cost of maintenance, change and agility, complexity and high project failure risk
• Absence of real-time capability—while this might be deemed less critical to strategic performance, real-time support can be critical to operational-level performance management as we will see below
• Inability to explicitly align individuals, teams, and operations with organizational strategies—this is arguably the most critical factor for performance management success

BrightQuadrant’s business performance management solution resolves all aforementioned issues.

Real-Time Business Performance Management with KPIGuard™

The BrightQuadrant KPIGuard-based real-time total enterprise business performance management solution aligns individual, team, operational, and strategic performance for maximum efficiency and effectiveness. It considers organizational vision and strategy, success factors and their inter-relationships, and the different types of applicable performance measures including key performance indicators (KPI's), their hierarchies, and how they influence performance. It also establishes the right reporting framework to ensure such critical information is collected and delivered to the right people at the right time.

The KPIGuard-based real-time total BPM/EPM solution aligns team, operational, and strategic performance

Moreover, the solution allows for seamless, non-intrusive real-time collection and integration of metrics from ALL types of internal and external enterprise assets, as well as easy customization to support any changing requirements without the need for programming or costly business intelligence (BI) projects. The ability to automatically launch actions to prevent or correct inadequate performance is also an important complement to the solution.

BrightQuadrant’s holistic, overarching, integrated solution is critical to correlate, aggregate, analyze and most importantly influence performance at all organizational levels, overseeing the health of business strategy implementation, operational process activities, as well as team and individual execution performance in coherent and aligned sets of scorecards and executive dashboards.

Curious to see for yourself? Contact us now for a demo request. BrightQuadrant can help you quickly and efficiently implement customizable 360 degrees enterprise performance management (BPM/EPM) for your business.

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