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### Summary of Business Performance Management (BPM)

#### **Definition and Features of BPM**

- **Definition**: BPM involves tools, techniques, methodologies, and metrics used
by organizations to measure, monitor, and manage business performance. It aligns
individual performance with strategic goals.
- **Features**:
- Also known as Corporate Performance Management (CPM), Enterprise Performance
Management (EPM), or Strategic Performance Management (SPM).
- Uses a variety of tools and metrics to assess performance.
- Focuses on financial and operational activities.

#### **Components of BPM**

1. **Integrated Management Processes**: Address financial and operational
activities using technology.
2. **Strategic Goal Tools**: Define, formulate, and measure strategic goals.
3. **Planning and Metrics**: Includes financial/operational planning and Key
Performance Indicators (KPIs).

#### **BPM Process Steps**

1. **Define What to Measure**: Identify outcomes and design performance measures.
2. **Collect Data**: Decide on data sources and collection methods.
3. **Store Data**: Use efficient systems for easy access and cross-functional use.
4. **Convert Data to Information**: Analyze raw data to generate actionable
insights.
5. **Communicate Information**: Present data visually (e.g., graphs, reports) for
decision-making.
6. **Interpretation**: Draw conclusions about performance outcomes.
7. **Take Action**: Decide on improvements and implement changes.

#### **BPM Cycle**

1. **Strategic BPM Process**:
- Analyze current position (SWOT, Critical Success Factors).
- Develop strategic vision, goals, and objectives.
2. **Budgeting, Operations, and Financial (BOF) Process**:
- Convert strategic goals into tactical initiatives.
- Focus on operational planning and prudent resource allocation.

#### **Key Takeaway**

BPM is a continuous, dynamic process that helps organizations adapt to changing
environments by aligning performance with strategic objectives through measurement,
analysis, and action.

**Source**: SIA Publishers and Distributors Pvt. Ltd.### Summary of the Page:

**Usage of Business Analytics:**

- Increasingly adopted by medium and large organizations for effective business
transactions.
- Challenges include distribution of analytics tools, cultural and process-related
issues, and aligning analytics with business needs.
- Used to detect white-collar crimes like inflated invoices and customer
impersonation.

**Benefits of Business Analytics:**

1. Tracks mission statement accomplishment.
2. Provides essential information for accurate decision-making.
3. Offers future insights through visualization.
4. Enhances efficiency by processing large data quickly and aiding in strategic
planning.
5. Synchronizes financial and operational strategies.
6. Boosts revenue and competitiveness.
7. Improves collaboration between strategies.
8. Enhances customer responsiveness by leveraging customer data.

**Success of Business Analytics:**

- High ROI (17%–2000%, median 122%) reported by organizations using BA.
- Effective in detecting internal and external frauds by analyzing data patterns.
- Example: Williams-Sonoma saved millions using SAS data mining for targeted
marketing.
- Key trends:
- Growing adoption of BA, especially in large organizations.
- Successful companies invest heavily in BI technologies.
- Government sectors lead in BA usage.
- Companies using BA trust their customer data insights more.

**Note:** The page emphasizes the transformative impact of BA on modern businesses,

despite implementation challenges.### Summary of the Images:

The provided images cover various aspects of **Business Analytics (BA)**,

**Business Intelligence (BI)**, **Data Visualization**, and their implementation in
organizations. Here’s a consolidated summary:

---

#### **1. Business Analytics (BA)**

- **Definition**: BA helps management make objective and accurate business
decisions. It is also known as Business Intelligence (BI), BI applications, or BA
processing.
- **Tools and Techniques**:
- **Information and Knowledge Tools**: OLAP (Online Analytical Processing),
Reports (Routine and Ad-Hoc), Data Mining.
- **Visualization Tools**: Balanced Scorecard, Dashboards.
- **Vendor Classification Tools**: Enterprise Reporting Tools, DAT (Delivery and
Alert Tools), Statistical Tools, CAT (Cube Analysis Tools), Ad Hoc Query Tools, EIS
(Executive Information System), ESS (Executive Support System).
- **Applications**: Used by businesses like "Pizza Hurt" for customer insights
(e.g., order trends, demand timing, promotional impact) and banks for loan
approvals based on creditworthiness.

---

#### **2. Data Visualization**

- **Definition**: Technologies that support visualization and data interpretation,
enabling users to identify trends and relationships.
- **Methods**:
- **Dashboards and Scorecards**: Provide executives with real-time data in visual
formats.
- **Visual Analysis**: Tools like Hyperion’s Visual Explorer allow non-technical
users to analyze data.
- **Financial Data Visualization**: Helps CFOs visualize risk, return, and
liquidity in 3D landscapes.
- **Visualization Spreadsheets**: Tools like Microsoft Excel for data
manipulation, pivot tables, and macros.
- **New Directions**: Integration with decision support tools, 3D visualization
(e.g., Forest Tree 6.0), and tools for website performance analysis (e.g.,
ADVIZOR).
---

#### **3. Business Intelligence (BI) Implementation**

- **Critical Success Factors**:
- Business-driven methodologies, clear vision and planning, strong management
sponsorship, data quality management, user-centric solutions, system performance,
and extensible frameworks.
- **Managerial Issues**:
- System development complexity, high costs (justified for large organizations),
legal/privacy concerns (e.g., targeted promotions), intangible benefits, security
risks, ethical issues (e.g., incorrect DSS outputs), and project failures due to
lack of coordination or expertise.
- **Emerging Trends**:
- **Web 2.0**: Enhanced user interaction.
- **Virtual World**: 3D environments for business collaboration (e.g., Second
Life).
- **Social Networks**: BI tools analyze social media data for marketing insights.
- **RFID**: Tracks inventory but faces challenges like signal interference.
- **Reality Mining**: Analyzes large data streams (e.g., from RFID) for decision-
making.
- **Collaborative Decision Making**: Integrates inputs from multiple
stakeholders.

---

#### **4. BI Applications in Emerging Technologies**

- **Social Networks**: BI tools analyze social media data to understand customer
behavior, preferences, and campaign effectiveness.
- **RFID**: Used for inventory tracking but limited by technical challenges (e.g.,
metal/liquid interference, frequency range issues).
- **Reality Mining**: Processes large-scale data (similar to RFID) to generate
actionable insights.

---

### Key Takeaways:

- BA and BI are essential for data-driven decision-making, with tools ranging from
OLAP to dashboards.
- Data visualization enhances understanding through interactive and real-time
displays.
- Successful BI implementation requires addressing cost, privacy, and technical
challenges while leveraging trends like virtual worlds and social media analytics.
- Emerging technologies like RFID and reality mining expand BI’s scope but come
with limitations.