the enabling role of information: technology for business performance management

The Enabling Role of Information Technology for Business

Performance Management

Vishaldeep Garg 6503856Neetima Agarwal 9609152Malvika Tomar 9609153

Introduction IT industry has developed several new concepts

and tools to meet business requirements.Recent management support approaches like

intellectual capital aim at providing a broader view of organizational performance.

There is a strong demand for comprehensive performance management in today’s competitive scenario.

Measurement of performance was usually restricted to a financial perspective which resulted in various limitations.

April 11, 2023 The Enabling Role of Information Technology 2

Performance Management System Performance management aims at the systematic

generation and control of an organization’s performance.

Performance management system consists of four main activities:Performance planningTaking action to controlPerformance measurementPerformance rewarding


Business Performance Management


Business Performance Management is used as an umbrella term for “methodologies, metrics, processes and systems that monitor and manage the performance of an enterprise”

Integral Business Performance Management support is enabled by the convergence of the well-adapted, so far isolated support technologies Business Process Modeling (BPM), Business Intelligence (BI) and Enterprise Application Integration (EAI).

Process Performance Management


Convergence of Business Process Modeling and Business Intelligence.

In order to create, maintain and communicate business process specifications, most companies and/or consultancies deploy specific business process modeling tools.

These tools enable the measurement of process performance and the identification of process improvement opportunities.

Need For Process Performance Management

To control the execution of business processes by comparing process models with data collected during process execution.

To identify potential for improving process execution and to recommend the appropriate modifications to the processes.

Definition of performance indicators and process goals for each process that is to be analysed.

Mechanism for the translation of process analysis results into recommendations for appropriate improvements of the process design.


Real-time Analytics Convergence of Business Intelligence and

Enterprise Application Integration Companies always strive towards reducing

the time needed to react to relevant business events i.e. without any latency between recognizing a relevant business event and taking an appropriate action.

Real-time analytics aim at shortening the period of time between the occurrence of an event that requires an action and the time the action is finally carried out.


Need for Real-time Analytics

The additional business value of an action decreases, the more time elapses from the occurrence of the event to taking action which is called action time.

Action time comprises three components:Data Latency: Time from occurrence of event until data is

stored & ready for analysis.Analysis Latency: Time from the point data is available to

the time information is generated.Decision Latency: Time from delivery of information to

taking the appropriate action.

This latency need to be reduced.April 11, 2023 The Enabling Role of Information

Technology 8

Business Process Automation Convergence of Business Process

Modeling and Enterprise Application Integration

EAI middleware provides a common integration infrastructure, allowing any connected system to communicate with any other connected system over just one dedicated interface to the integration infrastructure.

Applications provide their functionality through well-defined services with standard interfaces to an EAI platform.


Need For Business Process Automation

Information Systems infrastructure of an organization comprises of heterogeneous application & available business software packages do not support all the processes of the organization.

If organizations merge they need to integrate both their business processes & supporting IT infrastructure in order to reduce costs & improve productivity.

Integration of various applications are needed as business processes are supported by more than one application.

So integration at IS level & business process level is needed & thus Business Process Automation was implemented


Business Performance Management Enablers

Business Process Automation links process design to application integration services to in order to foster the automation of business process implementation.

Real-time analytics allow for the reduction of latency times in decision support by combining the integration capabilities of EAI with the analytic capabilities provided by Business Intelligence.

Process performance management closes the loop between process design and business intelligence by enabling the comparison of process execution data in order to identify potential for process improvement.


Phases of Implementation of IT-Enabled BPM System


Process Categories


BPM Processes


STRATEGIC DEVELOPMENT PROCESS

OPERATIONAL MANAGEMENT PROCESS

BPM Processes


STRATEGIC DEVELOPMENT PROCESS

BPM Support Process Categories INFORMATION LOGISTICS PROCESSES

Provide task specific information from business processes/transactional data, from management processes(strategy information)& from external market to other BPM processes.

Comprises of :• Information acquisition • Information integration• Information structuring• Information filtering• Information presentation• Information distribution


BPM Support Process Categories

PROBLEM SOLVING & DECISION MAKING PROCESSES Manage & access experience, models & methods. Support the planning, budgeting, & forecasting activities.

COLLABORATION & COMMUNICATION SUPPORT PROCESSES Control sequences of activities in BPM process cycle. Communicating BPM results between BPM process cycles

and business/support process layer.


Conclusion IT development in business infrastructure has

enabled to meet business requirements of integrated, & flexible business performance management system.

Traditionally performance was measured in terms of financial value contribution but with IT enabled business infrastructure support.

The trend of convergence discussed, can build the foundation for a better alignment of strategic decision making and operational business process management.


Vishaldeep Garg 6503856Neetima Agarwal 9609152

Malvika Tomar 9609153


the enabling role of information: technology for business performance management

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