Tutorials Business IntelligenceBusiness Performance Management is most commonly described as a set of processes that help companies or organizations optimize their business performance. It is specifically designed to organize, automate, and analyze business methods, metrics, processes and systems that drive an organizations performance.
It also involves the merging of data from a range of sources, querying, and analysis of the data and putting the results into practice to find the most desirable outcome. Business Performance Management improves those processes. Real-time reviews help organizations to identify and fix problems before they grow into extreme issues.
The Business Performance forecasting tools help the company take counteractive action in time to meet earning projections. Forecasting is designed to meet a certain level of predictability which is put into good use to answer the various what-if scenarios an organization is faced with. Business Performance Management is also useful with risk analysis and predicting outcomes of merger or procurement scenarios and coming up with a plan to overcome potential problems.
Business Performance Management provides the Key Performance Indicators we spoke of earlier. Using the two together give the organization a bit of a competitive edge as well.
Business Intelligence vendors have designed many tools that ease the work where gathering large amounts of data for analysis is involved. These new and fast becoming demanded programs are not only known for efficiency but also time saving. The tools that are normally used for Business Performance Management may include the following;
Data Warehousing – This is the main repository of an organization’s past data, essentially it is corporate memory. This contains the raw material for the organization’s decision support system.
Data Mining – (DM) This is the principle of sorting through the large amounts of data and picking out all of the relevant information.
Decision Support Systems – (DSS) These systems are a class of computer-based information systems designed to aid an organization in making informed decisions.
Document Warehousing – This tool tells an organization why things have happened, where as the Data Mining explains what has happened. The two can be linked together and become powerful support for the Decision Support System.
Executive Information Systems – (EIS) This is a type of management information system. It is designed to facilitate and support the information and decision making needs of an organizations executives. It helps to provide access to both external and internal information relevant to meeting strategic goals.
Management Information Systems – (MIS) These systems cover the applications of people, technologies, and procedures to solve business problems. They are used to analyze other information systems applied in the operational activities within the organization.
Online Analytical Processing – (OLAP) This is an approach designed to quickly address and provide answers for an analytical query that is multidimensional in nature. This is normally used in relation to sales and marketing.
Text Mining – This is sometimes also referred to as Text Data Mining as well. It is the process of deriving high quality information from text. This information is usually derived by dividing patterns and trends through the means of statistical pattern learning.
