Next Generation Business Performance Management - Predictive BPM

Business Performance Management (BPM) is to help business make efficient use of financial, human and material resources. BPM is seen as new generation Business Intelligence. BPM involves consolidation of data from various sources and putting them into practice. The most common approach employs dashboards known as the Balanced Scorecard (BSC).

The Balanced Scorecard provides concise, predictive and actionable information about how a company is performing and may perform in the future. BSC provides a framework for designing a set of measures for business activities as being the key drivers of the business or Key Performance Indicators (KPIs). KPIs are collected from CRM, ERP, Accounting, Personnel, Inventory, and so on. These days, the Balanced Scorecard is often synonymously used as dashboard reports.

Analytic BPM for Business Performance Management

Knowledge-Enhanced Predictive Reports (KPRs) can improve business visibility harnessing BSC with predictive modeling and business logic using expert systems. KPRs can analyze changes in business drivers and co-inference them automatically to detect hidden patterns underneath complex numbers. KPRs incorporate predictive modeling with rule-based expert systems into report writing and charting systems. The following figure shows a part of a business performance dashboard;

Trending shows recent figures (in seagreen) with near future predictions (in skyblue). (Note that near future figures are predicted using growth models.) Orange bars indicate target figures. "Course" indicates trend patterns. If positive patterns develop, it indicates to green. If negative patterns develop, it indicates to red. If no clear patterns emerge and fluctuations develop, it indicates to yellow for warning. Signals indicate overall health of KPIs. Monthly figures are colored based on pre-defined business rules on target figures.

Time-series predictive regression techniques are used in analyzing trends. Rule-based modeling (RME) and Expert Systems are used to determine status and signals of indicators.

Corporate Performance Management (CPM)

Corporate Performance Management (CPM) is an alternative name for Business Performance Management.

Analytic BPM for Business Process Management (BPM)

Business Process Management involves optimization and monitoring business activities. Intelligent dashboards can provide vital information for business process optimization. Business activity monitoring (BAM) covers primitive parts of monitoring activities with graphical charts. Predictive Inferential Analytics can go further with predictive and inferential technology. It can inter- and co-relate various business activities and KPIs, and perform real-time event handling.

For more, please read Business Activity Monitoring (BAM) with Complex Event Processing (CEP).