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Extra info for Business Performance Management . . . Meets Business Intelligence

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This is not a simple task. Methodologies and best practices for creating the right KPIs for a business are not in the scope of this redbook. This will be an exercise for your in-house business analysts, with perhaps some help from outside business consultants. Regardless of the method used to create them, it is important to note that each KPI should measure one or more of the top objectives of a business plan, so that managing it has an impact on improving business performance. For example, a KPI must measure something that drives real business value.

Instead, use data federation to extend and enhance your data warehousing environment to address specific business needs. Federated access to real-time data In a traditional data warehousing environment, if a query or report requires up-to-the-minute data as well as consolidated historical and analytic data, the real-time data must be fed continuously into the data warehouse, possibly through an ODS. The problem with this approach is that not only must significant quantities of near real-time data be stored in the data warehouse, but also the ETL environment must be capable of supporting sustained near real-time processing.

This process constitutes the management of business performance. Chapter 1. Understanding Business Performance Management 19 Business Policies Production Operations Events External Environment Data Sources ƒBusiness Rules ƒAlerts & Thresholds Data ƒAnalysis ƒModeling & Planning Data Warehouse Escalation Vehicles ƒEvent Filtering Context ƒPortals ƒBI Tools ƒApplications ƒDashboards ƒPrioritization ƒData Mining Response Figure 1-2 A simplified BPM closed-loop system IBM delivers BPM solutions with capabilities such as the following: Integrated modeling of processes, policies, goals, and KPIs Externalized business rules for deploying complex business strategies and improving responsiveness to business rule changes Event-driven management of business and IT operations across the extended enterprise Integration of event and business metrics with business intelligence for assessing KPIs relative to business goals Advanced business simulation and performance optimization based on real-time monitoring of business activities Proactive monitoring and business alerts User-customized analytics and reporting of On Demand business and IT performance information Industry-specific business performance management solutions (financial services, health care, and retail, for example) with methodologies and dashboards for evaluating and improving industry processes and services Consolidated and dynamic resource management 20 BPM Meets BI BPM strategy considerations For maximum impact on business performance, BPM should be considered an enterprise-wide strategy.

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