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10 steps to 21st century Business Intelligence and Performance Management (Part 2)

Posted by Vy Huynh on

In order to make the most optimization decision, managers and executives must ensure that all business processes are supported with meaningful, proactive information. Business Intelligence is one of the key technologies that help companies to successfully deliver information and transfer them into strategic plans. In our last post, we discussed about the first 5 steps to help create harmony concept between business intelligence (BI) and performance management (PM) for better business performance. The next 5 steps are to address organisational needs as well as challenges in order to direct BI and PM in the right path.

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6.       Identify the types of data you need to access and analyse

Most organisations agree that providing access to data through various methods is an important goal to provide the exact BI tools needed. Data types related to business activities such as financial data and customer data are also essential for business to determine what BI tools they would choose to generate.  Moreover, the needs to access data from spreadsheets or transactional data from enterprise systems such as CRM or ERP are also an important factor that helps determine the right BI tools and systems. Hence, in order to apply BI to PM to the best use, companies should identify the types and sources of data they need most often and evaluate tools based on that to help you to do so.

7.       Adopting or expanding metrics for PM

To develop good performance management, managers must have ability to measure and track actual performance based on forecasted data accurately. Consequently, you should have a standardised library of metrics to determine what metrics are most suitable to your current state. Monitoring performance activities and processes using metrics can contribute a lot to the improvement of the organisation. Identify which processes and employees that are likely to perform better when metrics are applied to evaluate their performance, and then deploy suitable BI system to manage those metrics.

8.       Address organisational barriers to improve BI and PM

Although organisations acknowledge the needs to improve and develop its business process every day, there are always barrier. The most cited barriers are lack of resources and budget, followed by the lack of awareness and lack of executive support. To overcome this, you should come together and discuss about what barriers that your organisation currently encounter and choose the best way to implement BI into your business while still keeping the cost in control (See out previous posts 5 ways to optimise BI solutions in an easy and cost-effective manner for more information).

9.       Look Into alternative means of software deployments

Beside choosing suitable BI tools and optimise them by using various techniques to drive down costs, companies can also choose hosted software which is managed off-site, or rent software as a service based on demand. This means you can save your costs of implementing and human resources for deploying BI systems on-site in an established manner. These options can help you overcome barriers such as lack of resources or lack of executive support. However, you will rely on outside providers in your BI implementation; but still, organisations should consider both ways to choose in order to bring the best solution to the problem.

10.       Examine software to be deployed across roles in the enterprise

Managers are found to be the most assertive people to plan and evaluate new products and new management systems, regarding their decision-making role in the organisation. The evaluation must be based on realistic and critical criteria: usability – whether the software meets the business needs, functionality – the software capabilities. By considering the breadth of required implementation from software to support BI and PM will give you a criterion to evaluate products and vendors to demonstrate the usability and appropriateness of their products for your use.

In summary, in order to successfully combine BI to PM, organisations should consider its state of maturity, its current needs of organisational BI, its data types and sources as well as the adequacy of the current BI tools to find out what is missing in the system and bring out the exact and effective solution.

You can view the original article here.

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Topics: Performance management.

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