The Enabling Role of Information

Technology for Business

Performance Management

Vishaldeep Garg 6503856

Neetima Agarwal 9609152
Malvika 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.
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 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 planning
 Taking action to control
 Performance measurement
 Performance rewarding

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 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).

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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.
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 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.
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 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.

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 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.
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 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.
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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
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 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.

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 Phases of Implementation of IT-
Enabled BPM System

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 Process Categories

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 BPM Processes
STRATEGIC DEVELOPMENT PROCESS

OPERATIONAL MANAGEMENT PROCESS

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 BPM Processes

STRATEGIC DEVELOPMENT PROCESS

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 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
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 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.

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 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.
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 Vishaldeep Garg 6503856
Neetima Agarwal 9609152
Malvika Tomar 9609153
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