Relationship Between Business Intelligence and Business Performance Ma

Question: Discuss about theRelationship Between Business Intelligence and Business Performance Management. Answer: Introduction This study is based on the integration of Business Performance Management and Business Intelligence. In all these years, companies have been successful in understanding the importance of metrics driven management and how such enforcement can bring accomplishment of the organizational goals. Business Performance Management refers to the set of analytic processes and performance management that helps the management of an organization to accomplish one or more predetermined goals. Whenever there is a business problem, it can be solved by using the techniques and procedure of business performance management (Balaban, N, Belic, K and Gudelj, M, 2011). In business management approach the organization is considered as a whole instead of as a single division. It entails to review the performance of a business and to determine how a particular business can accomplish its goals. It involves of operational objectives and alignment of strategic in order to manage performance. BPM basically aims to aggregate the information of the organization that is actually available, and the managers can be more updated by informing them about the position of the company that can help in taking better decisions. BPM is also known as Corporate Performance Management. In the business literature BPM has a number of names, such as, Enterprise Performance Management and Strategic Management of Enterprise. Although it has been named with different names, and they all mean the same. In order to reach specific goals of the company, the management has to take an initiative to assemble people and resources. BPM is designed in such a way that the defined business targets can be met within a particular time period (Fischer, L, 2010). Performance management is important to look at the performance criteria and also to measure them with the set targets. The board in an organization is responsible to measure the outcomes and to perform metrics to view that how well the organization is trying to meet its long term goals. The metrics is included from the internal factors and from the marketplace that can affect the success of an organization. Using the strategic performance management model, the corporate can define their corporate strategy and then try to measure the performance, after this the indicators can be used to analyse performance to extract insights and take better decisions that can bring actions and performance improvements (Williams, S, 2016). The organizations are required to design the key performance indicators in order to monitor and measure how well it can be delivered on the objectives of the organization. The metrics should be meaningful and relevant enough. Many organizations usually fall into the trap of metrics where they choose what is easy to measure ignoring what is relevant and important. Key performance indicators are quantifiable and measurable. These indicators are important to measure those critical factors to the organizational success and are applied consistently to all the performances happening in an organization. Business Intelligence Before describing the relationship between Business Intelligence and Performance Management it is important to what exactly Business Intelligence means. It refers to the computer software or tools which collect all types of business data that is actually very complex for a company. It also condenses it into a report. The main focus is on collecting data for a specific department or to express an overall impression of the status of the company (Kale, V, 2016). Relationship Between Business Performance and Business Intelligence Business Intelligence and Performance Management are related to each other (Cokins, G, 2006). We know that Business Intelligence (BI) includes raw information or data that has to be first integrated from disparate source systems, thereafter can be converted into information, whereas Performance Management (PM) is responsible to leverage the information. In this regard, information is more valuable than that of the collected data points (Williams, M, 2016). This is mainly because integrating and transforming fact points by the use of calculations and by discovering patterns results in the information that is potentially meaningful can be used. We are very much aware that the interest of an organization is not just to monitor dials; the most important task is to move the dials. That is what reporting information has to do in order to manage to achieve better outcomes. If an organization wants to improve its performance, actions and decisions play an important role. Mainstream business intelligence is actually very important; it is due to the results of departments that require advances to facilitate functioning (Herschel and T, R, 2012). To bring organizational success and competitiveness, it is essential to extend BI across the organization to allow the mini BI applications to talk. Improving and managing cannot be considered a same thing. BPM is the final component of Business intelligence which is followed by the next phase that helps in the evolution of various system supports of decision making and enterprise information systems. When Business Intelligence is utilized to concentrate on the changes of business processes, companies can find solution regarding saving money and can make close relations with their customers (Nash, K, 2010). It is clear from this that BPM is a result of Business intelligence that incorporates many of its applications, technologies and many other concepts (Sharda, R, et al., 2014).But there is a question that why business intelligence cant deliver what is actually needed for the improvement of overall performance. When it comes to decision support, Business Performance management is actually more than a technology (Turban, 2008). It consists of various metrics, methodologies and technology that can be utilized to measure, manage and monitor the activities of a business (Bergh, J, Sara, T and Viaene, S, 2014). Once we select a business process that will be used to bring improvements and the implementation of business methodologies, there are metrics that can monitor and measure the changes to be brought. Theses metrics are also termed as key indicators in this context which is selected and defined by a particular business and not by the information technology (Fischer, L, 2013). The select ion of business performance measurement technique is the very last step in this process. Therefore, we can conclude by saying that business intelligence is not related to business performance measurement and related with business management. It is very clear now that BPM is not a technology that can be single, instead it is a combination of various factors that is, Business intelligence, profiling and score carding (Bogdana, P, Felicia, A and Delia, B, 2009). Business intelligence now has to look at the analyses made in the past and what it caused until today. This is actually significant because planning requires experience and knowledge to achieve goals can set on the basis of past results. Score carding is that process which helps in measuring how you perform to match up with the predetermined goals. In all organization, it is made clear to conduct feedback of the overall plan. It is actually very important to know the new change that took place in the processes of an organization. This is because when an enterprise makes a relevant strategy that demands to stop organizations to optimize local business at the cost of performance of corporate as a whole. Factor Traditional BI BI for BPM Decisions Strategic, Tactical Strategic, Operational Focus Historical Timely Orientation Relative Proactive Measures Metrics Key indicators of performance Visuals Tables and Charts Dashboards and Scoreboards Views Generic Personalized Data Numeric Numeric, text, etc. Table 1(Ballard, C, 2006) The above table shows the differences between traditional Business Intelligence and Business Intelligence for Business Performance Management. The implementation of business intelligence is strongly aimed to turn available facts into information and delivering the same to the decision makers. Business performance management is focused on a part of information that is delivered by a system of BI. BI system basically gives the information that has the capacity to reflect business performance and also gives indication regarding the success or failure that occurred in an organization. BPM is that type of management that involves a set of processes of closed loops that can be linked strategically for the execution, in order to be responsible for that task. It is very much clear that Optimum performance can be achieved by an organization by setting objectives that are strategic, establishing plans and initiatives to achieve goals, monitor the actual performance with the set of objectives a nd at last by taking corrective actions, that is, to act and adjust. Business analytics means skills, practices and technologies for continuous investigation and exploration of past business performance to drive business plan and to gain insight (Laursen, G and Thorlund, J 2016). BPM provides context for leveraging BI and analytics and helps in deciding what has to be analysed. At the time of embedding business analytics into various methods of BPM and EPM methods, the strategies of mapping, scorecards, customer profitability analysis and Six Sigma productivity brings initiatives for a good rule that has to be followed to work backwards by making end decisions in mind. There are six components that make up Enterprise Performance Management and Corporate Performance Management, and they should be integrated in such a way that breaks down silos (Cokins, G, 2013). These major components are strategic planning and its execution, cost visibility and behaviours of various drivers, customer intelligence; planning, forecasting and predictive analytics, enterprise risk management and the last one is improvement of the entire process. All these components help in knowing the business analytics better in an organization. It is essential to know the importance of business analytics in an organization. It is that tool or methodology that ensures a sound commercial decision. In a very cut throat business environment, business analysis becomes more significant to maintain competitiveness (Business analytics.com, 2012). It facilitates better understanding of both primary and secondary data that can affect efficiency of various departments while performing operational activities. Business analytics is that process which can be applied only on large volume data. It is a difficult process to obtain large volume of facts and data. Many organizations have mixed packages and applications for custom related business that is a part of strategic performance management, enterprise analytics, operational reports used to support the decisions taken in the operations of the business concerned. Now the main issue is that all these level of decisions are not together (Liebowitz, J, 2013). To solve these issues, all these levels of decision should be integrated. The major requirement is to combine various strategies and timely operational analytics (Jank, W, 2011). This integration can be supported by using dashboards and scoreboards at different levels of strategy with the help of business intelligence techniques and applications that ensures level of business performance at operational and tactical levels. Conclusion Managing business and its performance is a critical process to maximize the business profitability and to maintain its position in todays competitive environment that is highly competitive. Effective business performance management can bring all the elements of business intelligence together, elements like planning, monitoring and budgeting as well as providing a chance for performance. The first step of managing business performance is the integration of BI and BPM. 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