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CISB594 – Business Intelligence. Business Performance Management. The Plan. Today – to complete BPM (through group work & testing understanding of learning outcomes). Reference. Materials used in this presentation are extracted mainly from the following texts, unless stated otherwise. - PowerPoint PPT Presentation
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CISB594 – Business IntelligenceCISB594 – Business Intelligence
Business Performance Business Performance ManagementManagement
CISB594 – Business IntelligenceCISB594 – Business Intelligence
The PlanThe Plan
• Today – to complete BPM (through group work & testing understanding of learning outcomes)
CISB594 – Business IntelligenceCISB594 – Business Intelligence
ReferenceReference• Materials used in this presentation are extracted mainly from
the following texts, unless stated otherwise.
CISB594 – Business IntelligenceCISB594 – Business Intelligence
ObjectivesObjectivesAt the end of this lecture, you should be able to:• Describe the business performance management
(BPM)• Explain the BPM’s closed-loop processes linking
strategy to execution• Describe the differences between scorecards and
dashboards• Describe some of the basics of dashboard design
CISB594 – Business IntelligenceCISB594 – Business Intelligence
CISB594 – Business IntelligenceCISB594 – Business Intelligence
BPM definedBPM defined
• An umbrella term covering the processes, methodologies, metrics and technologies for enterprises to measure, monitor and manage business performance and drive the overall financial and operational performance of an enterprise.
• It helps organization to translate a unified set of objectives into plans, monitor execution, and deliver critical insight to improve financial and operational performance.
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Summary of BPM ProcessSummary of BPM Process• BPM consists of closed-loop set of processes that link strategy
to execution in order to optimize business performance• BPM closed-loop processes:
• Strategize : Setting goals and objectives (Where do we want to go?) • Plan : Establishing initiatives and plans to achieve those
goals (How do we get there)• Monitor: Monitoring actual performance against the
goals and objectives (How are we doing)• Act and Adjust : Taking corrective action (What do we
need to do differently)
CISB594 – Business IntelligenceCISB594 – Business Intelligence
BPM Closed-Loop ProcessesBPM Closed-Loop Processes
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Strategize: Strategize: Where Do We Want to Go?Where Do We Want to Go?
Strategic planningStrategic planning– Strategic objective
A general course of action prescribing targeted directions for an organization
e.g. To provide technology based services to clients e.g. To increase the number of Postgraduate student intakes– Strategic goal
A quantified objective with a designated time period e.g. To ensure at least 80% of the clients have an account with
the online service offered by 2012 e.g. To reach 50% increase in numbers of Master’s students by
2015
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Strategize: Strategize: Where Do We Want to Go?Where Do We Want to Go?
However, there is a possibility for problems in meeting However, there is a possibility for problems in meeting those goals : The strategy gap those goals : The strategy gap – Four sources/reasons for the gap between strategy and
execution:1. Vision (viability, suitability to the organization, is it aligned
with the main objectives )2. People (are they ready? Acceptance to changes? Attitude?)3. Management (do they agree with the strategy? Political
issues?)4. Resources (is the infrastructure ready? Platform, network,
hardware. Skillsets?)
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Plan: Plan: How Do We Get There?How Do We Get There?
Operational planningOperational planning– Operational plan
Plan that translates an organization’s strategic objectives and goals into a set of well-defined tactics and initiatives, resources requirements, and expected results
– A project plan that is designed to ensure that an organization’s strategy is achieved
– Two approaches; tactic centric and budget centric
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Plan: Plan: How Do We Get There?How Do We Get There?
• Operational planning – 2 approaches:– Tactic-centric - In tactic-centric planning, the focus is on
developing tactics that will meet the strategic goals. After that, the cost of implementing them is considered. If it exceeds what the organization is willing to spend, the plan can be revised.
– Budget-centric plan— the focus is on developing tactics that meet financial targets. After that, the results of using them are considered. If they do not meet the organization’s strategic goals, the plan can be revised.
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Monitor: Monitor: How Are We Doing?How Are We Doing?
• A comprehensive framework for monitoring performance should address two key issues: – What to monitor – How to monitor : • using system that has inputs, • a process for transforming the inputs into outputs, • a standard or benchmark against which to compare the
outputs, • and a feedback channel to allow information on the
outputs and the standard to be communicated and acted upon
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Act and Adjust: Act and Adjust: What Do We Need to Do What Do We Need to Do
DifferentlyDifferently??
– Managers’ creativity counts at this stage– The common problem is that management has little time
to review results from a strategic perspective, decide what should be done differently, and act on the revised plans – a challenge
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Performance Measurement Performance Measurement
Performance measurement system (under monitoring) • A system that assists managers in tracking the
implementations of business strategy by comparing actual results against strategic goals and objectives
• The most popular system in use is the balanced scorecard (BSC) – The balanced scorecard suggests that we view the
organization from four perspectives, collect data and analyze it relative to each of these perspectives
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Balanced ScorecardsBalanced Scorecards
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Balanced ScorecardsBalanced Scorecards
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Example of BPM system: Performance Example of BPM system: Performance Dashboards and Scorecards Dashboards and Scorecards
• Dashboards– a dashboard is an executive information system user
interface that (similar to an automobile's dashboard) is designed to be easy to read
• Dashboards and scorecards both provide visual displays of important information that is consolidated and arranged on a single screen so that information can be digested at a single glance and easily explored
Performance DashboardsPerformance Dashboards
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Performance Dashboards Performance Dashboards • Dashboards versus scorecards – Performance dashboards
Visual display used to monitor operational performance – Performance scorecards
Visual display used to chart progress against strategic and tactical targets
Characteristic Dashboard Scorecard
Purpose Measures performance Charts progress against targets
Users Supervisors, specialists
Executives, managers, staff
Updates“Right-time” feeds
Periodic snapshots
Data Events – as they happen Summaries
DisplayVisual graphs, raw data
Visual graphs, text comments
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Types of Performance Dashboards Types of Performance Dashboards Three types of performance dashboardsThree types of performance dashboards• An operational dashboard is used by frontline workers and
supervisors to monitor key operational data that are lightly summarized and updated frequently throughout the day.
• A tactical dashboard is used by managers and analysts to track detailed and summarized data generated from departmental processes and projects on a daily or weekly basis.
• A strategic dashboard is used by executives, managers, and staff to monitor detailed and summarized data pertaining to the execution of strategic objectives on a monthly or quarterly basis.
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Performance Dashboards Performance Dashboards
• Dashboard design – “The fundamental challenge of dashboard design is to
display all the required information on a single screen, clearly and without distraction, in a manner that can be assimilated quickly" (Few, 2005)
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Performance Dashboards Performance Dashboards
– What to look for in a dashboard • Use of visual components (e.g., charts, performance
bars, sparklines, gauges, meters, stoplights) to highlight, at a glance, the data and exceptions that require action.• Transparent to the user, meaning that they require
minimal training and are extremely easy to use • Combine data from a variety of systems into a single,
summarized, unified view of the business• Present a dynamic, real-world view with timely data
refreshes, enabling the end user to stay up-to-date with any recent changes in the business.
CISB594 – Business IntelligenceCISB594 – Business Intelligence
Now ask if …Now ask if …You are now be able to:• Describe the business performance management
(BPM)• Explain the BPM’s closed-loop processes linking
strategy to execution• Describe the differences between scorecards and
dashboards• Describe some of the basics of dashboard design
CISB594 – Business IntelligenceCISB594 – Business Intelligence
CISB594 – Business IntelligenceCISB594 – Business Intelligence
To attain the learning outcomes of To attain the learning outcomes of this topicthis topic
Study the slides (yes you need the slides), and ensure that you can answer the following questions at the end of today’s session1. Explain Business Performance Management from business
perspectives2. Identify the BPM processes3. Explain strategic objectives and strategic goals4. Explain performance management system5. Compare and contrast performance dashboard and
performance scorecards6. Discuss the important characteristics of a well designed
dashboards