Business Performance Management survey

If you caught their webinar on Business Performance Management and Optimization a few weeks ago, you’ll know that ebizQ is putting together a survey on business performance management for their Buyer’s Choice Awards. You can help create and weight the criteria that will be used in the survey if you’re so inclined.

I’m still having a bit of trouble with the whole business performance management thing. The goal is to optimize business performance by aligning what goes on in the business with the corporate KPIs (e.g., customer retention rate). Okay, it makes sense that you focus on doing things that provide measurable improvement to the business; in fact, it’s not only common sense, it’s very similar conceptually to Six Sigma and a number of other business improvement practices that have been around for decades. A somewhat more esoteric goal of business performance management is to allow an organization to make decisions in real time, and become predictive rather than reactive. Lots of potential pitfalls this; it harkens back to the agility problem, which says that organizations aren’t being agile even when they have the capability to do so. Also, BPM definitely plays a major role as an input channel to business performance management, but don’t follow into the trap of optimizing operational processes while inadvertantly blowing your KPIs.

Business performance management is being defined as a combination of methodologies, best practices and technologies, where the technology includes event/process monitoring, management dashboards, rules engines, business intelligence, simulation, collaboration and potentially the kitchen sink. Maybe that’s why we have so many vendors claiming that they’re in business performance management: by this definition, there’s probably fewer software vendors who are not included than who are. In some cases, the technologies of business performance management are collectively referred to as BAM; in other cases, BAM refers only to the event/process monitoring. Personally, I would go for the former definition, but I don’t have a lot invested either way.

My problem is this: what distinguishes the concept of business performance management from that of the decision support systems (DSS) or executive information sytems (EIS) that we built in the 1980’s, except that the technology is a bit more advanced? This is being hailed as the new saviour of business, and I feel a bit like I’m looking at the Emperor’s new clothes.

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