Business Performance Management (BPM) is an umbrella term covering the business methodologies, metrics, processes and systems used to drive the overall performance of an enterprise.
I have always been wondering what is the link between BI and BPM.
According to Colin White from Wiki, she describes a link between business intelligence and business performance management, "The biggest growth area in operational BI analysis is in the area of BPM. Operational BPM applications not only analyze the performance, but also compare the measured performance against business goals and alert business users when actual performance is out of line with business goals."
There are different types of methodologies that can be used to implement BPM such as:
1. Six Sigma Strategy
2. Balanced Scorecard (BSC)
3. Activity-Based Costing (ABC)
4. Total Quality Management
5. Economic Value Add
6. Integrated Strategic Management
7. Theory of Constraints
Taken from: Wikipedia.
Of the 7 strategies mentioned above, BSC is the most commonly used. Besides BSC, I am quite interested to know more information about Six Sigma.
Six Sigma
Six Sigma philosophy is the application of science and data, rather than politics and hierarchy, as the driver of change. Just as the requirement for observable, measurable data drives scientific debate about, for example, the efficacy of a new drug, Six Sigma practitioners (often known in the Six Sigma lexicon as "black belts") insist that decisions that affect the business' performance, processes, or strategies be based on empirical data, analyzed in a scrupulous manner and tested for veracity in the real world (Rick Freedman, 2009).
By applying a simple performance improvement model called Define-Measure-Analyze-Improve-Control (DMAIC), Six Sigma practitioners assist organizations in achieving the highest level of perfection possible in the business environments in which they operate. DMAIC is simply a refinement of the well-known scientific method of inquiry optimized for the business environment (Rick Freedman, 2009).
This article written by Rick Freedman also mentioned about Six Sigma's history and its evolution.
DMAIC is the sub-methodology of Six Sigma. Other than DMAIC, it also got another sub-methodology - DMADV aka DFSS (Design for Six Sigma).
According to Wikipedia, some of the management tools and methods used by Six Sigma includes 5 Whys, business process mapping, et cetera.
Organisations can choose the methodology based on what is the most suitable and best for them. Different methodologies have its own sets of process, but all methodologies serves the same purpose - to optimise the overall business performance.
Temasek Polytechnic is also offering a 1 day course of understanding Six Sigma at a price of S$220 for organizations. This link shows more details about the course.
As for other methodologies, it can be easily found in Google.
I have always been wondering what is the link between BI and BPM.
According to Colin White from Wiki, she describes a link between business intelligence and business performance management, "The biggest growth area in operational BI analysis is in the area of BPM. Operational BPM applications not only analyze the performance, but also compare the measured performance against business goals and alert business users when actual performance is out of line with business goals."
There are different types of methodologies that can be used to implement BPM such as:
1. Six Sigma Strategy
2. Balanced Scorecard (BSC)
3. Activity-Based Costing (ABC)
4. Total Quality Management
5. Economic Value Add
6. Integrated Strategic Management
7. Theory of Constraints
Taken from: Wikipedia.
Of the 7 strategies mentioned above, BSC is the most commonly used. Besides BSC, I am quite interested to know more information about Six Sigma.
Six Sigma
Six Sigma philosophy is the application of science and data, rather than politics and hierarchy, as the driver of change. Just as the requirement for observable, measurable data drives scientific debate about, for example, the efficacy of a new drug, Six Sigma practitioners (often known in the Six Sigma lexicon as "black belts") insist that decisions that affect the business' performance, processes, or strategies be based on empirical data, analyzed in a scrupulous manner and tested for veracity in the real world (Rick Freedman, 2009).
By applying a simple performance improvement model called Define-Measure-Analyze-Improve-Control (DMAIC), Six Sigma practitioners assist organizations in achieving the highest level of perfection possible in the business environments in which they operate. DMAIC is simply a refinement of the well-known scientific method of inquiry optimized for the business environment (Rick Freedman, 2009).
This article written by Rick Freedman also mentioned about Six Sigma's history and its evolution.
DMAIC is the sub-methodology of Six Sigma. Other than DMAIC, it also got another sub-methodology - DMADV aka DFSS (Design for Six Sigma).
According to Wikipedia, some of the management tools and methods used by Six Sigma includes 5 Whys, business process mapping, et cetera.
Organisations can choose the methodology based on what is the most suitable and best for them. Different methodologies have its own sets of process, but all methodologies serves the same purpose - to optimise the overall business performance.
Temasek Polytechnic is also offering a 1 day course of understanding Six Sigma at a price of S$220 for organizations. This link shows more details about the course.
As for other methodologies, it can be easily found in Google.
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