The Business Performance Management

Published Date: 02 Nov 2017

BPM in your company is a challenge especially for the board, and only later the director of the IT department. In some organizations, particularly from the financial and telecommunication sector, the BPM is slowly becoming the standard. It is worth remembering that it is primarily a way to run the organization, its shape, but not a set of solutions or tools. BPM is not a technology, but the discipline of management leads to greater operational efficiency.

CPM is a term made ​​up of three main concepts: Balanced Scorecards (BSC), Business Intelligence (BI) and Enterprise Resource Planning. Scorecard is simply a method of control of the company. Balanced Scorecards concept ensures that when reviewing the overall business performance indicators it is taken into account other than traditional financial indicators. Without a doubt, the most important element of BSC is to determine which Key Performance Indicators (KPI) will be tested in this particular company. It is essential also that these KPIs are measured and properly selected for all levels of the organization.

BI is the ability to use data from a wide range of systems that store the data. BI allows organizations to figure out the trajectory of the company, which is malfunctioning and, most importantly, why something is going wrong. BI offers greater clarity and improved interpretation of past results which management can use to make informed decisions, necessary corrective actions and develop key indicators of future actions.

Planning is the process of overall envisaging of strategic business plan for individual decisions, actions and initiatives necessary for its implementation. Combining the development of generalized models, hierarchical data processing, sales forecasting, budgeting and indicator systems, planning allows to get a real picture of enterprise activities in the future. This information can be easily shared with board members, managers and analysts in all sectors of business, from sales to production and research and development, to the administration. Planning is also process which determined goals that the company wants to achieve and how to achieve them.

The purpose of BPM is to improve the efficiency of company management in as many of areas of its business activity as possible. How to approach this problem? In practice, company efficiency depends on several processes in its business environment in particular quality and effectiveness of its operations. So BMP concept needs to be broadly supported by all company departments upon realizing the set strategies. That is why it is commonly admitted that BPM focuses on strategies of particular companies which in turn are based on particular strategic and tactic plans. Thus BPM is to provide for servicing several processes, starting from creation of strategies, plans and budgets, through controlling, financial consolidation, to current analyses and reports to the boards.

In fact, the concept of BPM solutions provides maintenance strategic management in closed loop. This loop is a chain of activities - from planning to execution and control, and analysis of the results, which are used to construct the following plans. The concept of performance management coincides with the concept of management strategy. Management strategy is an action which continuously gives us the opportunity to verify whether - and how quickly - our business is moving in the direction envisaged by the strategy.

Origins of BPM systems can be traced to dedicated solutions of online analytical processing (OLAP) or BI in its scope including also the planning issues. Until recently analysis of performance made by companies, as long as they were made, they were carried out in long cycles, usually annual or semi-annual. Today, the economy is accelerating and companies generate and process more and more data, increasing importance of possibilities of the current business performance analysis. Competitive forces them to respond quickly to a variety of signals from the outside and from within the enterprise. Competitive forces them to respond quickly to a variety of signals from the outside and from within the organization. These new conditions make the organization is no longer able to respond to changes based on performance assessments prepared in long cycles. Therefore, BPM systems must provide the ability to manage performance in the company in near real time, or at least provide efficient reporting mechanism on the basis of current data.

Moreover, if we are talking about an effective BPM solution, performance management which is offered by them must be based on a number of specific indicators that cannot be limited to financial data, because, in fact, impact on business performance has, on the one hand, many more factors, and on the other - more and more factors determine the perception of the organization by its environment. Currently in financial indicators it needs to be analyzed to-date information, as to quality, customer satisfaction, profitability or market share. Only then we can talk about a solution that gives us the ability to manage policies.

Establishment of BPM systems is a natural consequence of the development of the market and the observed increase in the competitiveness of the sector's largest companies and the growing impact of science on the model of the organization.

According to the Gartner Group, we are currently at the stage of development of the era of "Omnipresent IT" actively changing business model of companies and BPM systems are one of the first signs of entering market in this period. Today, many companies declare to have BPM systems in its offer, but in practice, few companies offering solutions which functionality allows to connect technology with good business practice in order to track the real-time implementation of the current strategy. Business practice is particularly important in the implementation of BPM solutions, as opposed to other applications, BPM should not interfere nor in existing IT infrastructure of company or in impose restrictions or rigid management methodology. In other words, the BPM must be flexible enough to be able to fulfill its role in any accepted methodology of managing and, at the same time, uses the existing IT infrastructure of the company.

BPM systems organize and promote the flow of information in the enterprises. This class of solutions has some of characteristics which are linked to information resource management:

depicting the company according to the data processed in real time;

providing mandatory reports and ongoing control;

easy communication and cooperation with persons who determine performance of the organization;

simple and fast system to create "on demand" individual, custom reports;

ensuring the accuracy of the information presented;

supporting expenditure management of the company;

showing in figures how to implement the strategy;

BPM's preparing for change, because it presents a variety of scenarios, detect trends and makes predictions;

identifing the causes of specific problems;

allowing quick access to information via the Internet, Excel, and PDA

combining investment in technology with IT knowledge

The right BPM solution should have multiple functions to not only measure the performance of the company but also performance of the management. Therefore, BPM functionality should at least cover the following topics: strategic management, long term planning, budgeting, financial consolidation, forecasting, data analysis and reporting. BPM uses the information collected in traditional IT systems such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) and Supply chain management (SCM). Practically there is no obstacle to assess and analyze most of data that reflect the processes in the company. It is important that these processes were seen as components of plans and budgets, which in turn directly translate into the implementation of the strategy. We say that BPM systems are oriented in a variety of processes in the context of the strategic plans of the company.

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