Wednesday, July 30, 2008

Performance Management and BI

One can look at BI as having 2 dimensions - horizontal dimension of using BI "to do the business" and a vertical dimension of using BI "to run/manage the business".

Doing the business is capturing and making accessible the internal and external information to make decisions and take actions relative to the external environment - hence actually increasing the value delivered to the market and the value received in return as revenue/profit, etc.

Running the business relates to operating the business. It includes decisions/actions on processes, supply chain, organization, production rates, and investments.

Performance Management is easiest explained as if it relates more to the vertical dimension. This is where most companies see it. However, truely, a balanced view of performance management is the 45-degree line, balancing internal and external information for balanced (internal/external, long/short term) decisions and actions.

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