The Relationship between Business Intelligence and Business Process Management - Term Paper Example

BUSINESS PROCESS MANAGEMENT (BPM) By student’s name Code + Course name Professor’s name University name City, State Date TABLE OF CONTENTS 1.0 Part one…………………………………………………………………………………… 3 1.1 The relationship between business intelligence and BPM……………………………….. 3 1.2 The relevance of analytics in BPM………………………………………………………. 5 2.0 Part two...………………………………………………………………………………… 7 2.1 Whether Lee successfully implemented the 2011 strategy……...…………………….. .... 7 2.2 Reviewing Lee’s balanced scorecard against design principles…………….……………. 8 2.2.1 Whether Lee’s score card achieved what it was meant for…………………………….. 8 2.2.2 Whether Lee’s score card needs additional measures relating to customer perspectives…………………………………………………………………………………….. 8 2.2.3 Whether some matrices of employees would be included in the learning and growth perspective……………………………………………………………………………………... 8 2.3 Problems found in Lee’s process of improving quality………………………………….. 9 3.0 Part three…………………….…………………………………………………………... 10 3.1 Strategy map…………………………………………………………………………….. 10 3.2 Cause-and-Effect relationships among the strategic objectives in E-Appliances Balanced scorecard…………………………………………………………………………… 11 4.0 Reference list…………………..…………………………………………………………12 Part one 1.1 The relationship between business intelligence and BPM According to the BPM standard group, Business process management refers to those operations by a company that is integrated, managed, and analyzed by people with relevant skills through the use of technology and their primary goal is to address the financial and operational activities of the company. On the other hand, Business Intelligence refers to the concepts and methods practiced by organizations which are willing to improve their process of making decisions something which they achieve through some fact-based supported lines. Both BMP and BI help a company to leverage and consolidate various data available to improve their decision making. Looking at the two methods technically, BMP is an extension of the BI in that BI application deals with the technological collection of any available information while BPM deals with looking at the process systematically and controls the company’s primary objectives in the different departments of the enterprise. In both processes, the Chief executive officers of the companies using the two processes can communicate the business strategies goals to the company directors. In the control of the business operations, companies continuously adjust ongoing operations while still using both mechanisms. In the words of Gong (2011), both BMP and BI depend on each other in two first instances. They go hand in hand with each other. Most companies prefer to use both strategies to achieve their set goals and objectives. Firstly, BMP gets the infrastructural services including the Information Technology services from the BI. These include critical applications such as the process Maker BMP. The process Maker BMP is a very helpful program in the companies using the BMP process. The program is prepared by use of very high intelligence in the business sector without which making of such an application is impossible. Secondly, BMP includes a business process that leverages the BI. BI is easily achieved without the use of many resources due to a process is done in the BMP. The process involves a lot of planning and organization which are the basic needs of a BI. Without this process of BMI, BI is usually very demanding, and companies use extra resources in its implementation. The two processes have a very similar framework (Jean, 2008). BPM starts by laying down a strategy. A strategy is the setting of a plan which helps an organization to achieve a main overall aim successfully. The same case happens to BI; there is a technical team which lays down the strategy of analyzing an organization’s functions. The second stage in the BPM process is to plan. Planning is a critical step in both BI and BPM. It involves some professional personnel gathering enough information and setting out viable goals with the mechanisms to achieve them. The third stage in both BI and BPM is monitoring and analyzing. The managers are charged with the overall role of monitoring the performance of the laid down strategies. They oversee that what has been set is being executed by the company’s workforce. Taking corrective action is the last step in both processes. This involves adjustment of any errors that may be there while implementing the plan. The errors are adjusted since they can be a major stabling block. Managers should take immediate effect of changing the weak areas to ensure that the errors don't have the adverse effect and a consequent frustration of the whole process. However, there are still some differences between the two methods (Peter, 2013). Firstly, looking at BI, its implementation is narrower in that it focuses on developing a particular department in a company whereas BPM focuses on the entire business. BI seeks to improve a particular department of the company through its concepts. The top manager of that particular department comes up with the BI plan, and he oversees its implementation. On the other hand, BMP seeks to develop the company as a whole. It’s the overall chief executive officer in charge of all the departments who oversee the implementation of the BPM. Secondly, BPM supports the strategic, operational and the tactical aspects of an organization while BI exempts the functional dimension of the group. The BI process is primarily theoretical regarding developing new ideas and plans without assisting much in the operations of the organization. Looking at the BPM, it’s a more practical process which consequently goes a long way in helping the company to carry on its operations successfully. Fourth, BPM makes use of real-time information whereas BI relies on already existing data- that data which has been archived. Since BPM is more practical, data is sourced from the daily operations and the progress of the company. For instance, such data includes the data obtained from the company’s gross income and expenses. BI being much theoretical, it much depends on that data which has been already collected in the past operations of the company and which has already been taken and kept for future reference. Lastly due to their initial formation BPM solutions are proactive while those solutions by BI maintain a reactive orientation. Companies tend to use both strategies since BMP helps BI regarding making it more dynamic. According to Marlon (2013), both BI and BPM have two common important aspects. First, they lead to improved strategic performance of the organization. This is achieved only when the processes are properly implemented. Managers should be very keen to ensure that when they start practicing BI or BPI since a single mistake in their practice can lead to the frustration of the whole endeavor. Considering the costs, time and expertise that have already been used to start practicing the processes, managers should not take chances when it comes to their implementation. To correctly implement BI and BPM, companies should always first consider people with the right skills and knowledge as their managers. The managers should then use their expertise top plan, monitor and adjust the programs accordingly. The second advantage that comes with both BI and BMP is that when the two are properly implemented, they both lead to a larger return on investment from the organization. Companies can get a considerably higher profit than before. The companies use less resource to produce more products which are of high quality after successfully implementing both BI and BPM. 1.2 The relevance of analytics in BPM Analyzing in BPM is the mechanical process of pulling together and collecting data and then reporting the results. Analytics is critical in the implementation of BPM. Research shows that without analytics, the whole idea of BPM can just be impossible. However, developing and maintaining analyses is not in any way a simple endeavor (James, 2006). Around two-thirds of the time allocated to analyzing is usually spent on data issues. This information is mostly inaccessible or too difficult to integrate. A single mistake done in the course of communication lends any insightful analyses to be the waste. All in all, companies should take up the challenge and still practice analysis in the BPM implementation bearing in mind how relevant analysis is. One of the best ways to which companies can counter the hardship of analytics is by use of descriptive and historical data rather than forward-looking and perspective. To discuss the relevance of analytics in BPM, firstly, analytics in forecasting, planning and budgeting creates measures and assess soundness (Jean, 2008). One measure is that the company can not overspend while practicing the BPM. When the budget has been adequately analyzed, a company is well aware of the amount of money it is required to use in the overall process. The money can not underestimate the necessary capital or overestimate. Underestimation of the capital can lead to the frustration of the process half way while over-estimation can result in adverse loss by the company. Another measure that comes with analyses while practicing BPM is that a company can forecast and see any possible risks associated with the implementation of BPM. By identifying these risks, companies can plan well before the occurrence of the eventuality and mitigate them. Analytics helps the company to assess the soundness of the BPM through analyses something which establishes whether the process is viable or not. Without analyses, it is possible for businesses to start practicing BPM when it is not financially sound to do so. Companies should therefore always embark on studies before deciding to use BPM. Secondly, according to James (2006), through reports, companies can spot trends, identify relationships, calculate relations and quantity variances. These are great opportunities which can be of great help to the enterprise. When a company places patterns, it can practice an updated form of BPM that conform its current environment. This includes significant current trends such as the customer needs. With this, the company can strategize its BPM in a way that addresses the current requirements of the consumers something which can go a long way in boosting the Companies sales and consequently its development. Mark Parker, the current chief executive officer of the Nike Company recently acknowledged the use of analyzing the current trends so as to produce products which are currently needed by consumers in the market. Nike is one of the biggest companies in the world (Christine, 2016). It is through analyses that mo0st companies can identify relations and articulate them in their BPM (Jean, 2008). Relationships are critical as they lead to great developments among companies in particular through the sharing of ideas and experience (James, 2006). Thirdly, in the words of Gong (2011), companies can model new operational metrics and raise alerts when conditions diverge through analyses. These models are critical to a company which decides to use the BPM. BPM is well developed through enhancement of new models which go a long way in helping form a well-organized process (Rud, 2009). It is through analyses that the company managers know when something is not working correctly in BPM. Frequent and constant studies raise the alarm immediately when something is wrong, and those overseeing the BPM can undertake an immediate action which can be of great help to the company. Lastly, analyses are relevant BPM since the results of the studies can communicate and impact through visualization. Managers can get the real picture of a problem which might be in the process and address them accordingly. According to James (2006), many companies fail in BPM due to of lack of proper analyses. Managers should see this challenge and take the issue of studies in BPM seriously. Part two 2.1 Whether Lee successfully implemented the 2011 strategy Lee did not successfully implement its 2011 plan. This is because most of its proposed goals were never met. The actual results are way below target, and they need an immediate action; they are above 10% of target. For instance, with the objective of increasing the shareholder value by operating income changes from productivity improvements, Lee’s goal was $1,000,000, but the actual result came out to be $4,000,000 which is only 40% of the target; 60% off target. Another instance is increasing the shareholder value by operating income changes from growth, Lee’s goal was $1,500,000 but only managed to get $600,000 which is 60%; 40% off target. In total, Lee had set 7 objectives. Out of the seven, the Company managed to achieve only three objectives fully, failed two of its aims by less than 10% which required monitoring while terrible failing two of its goals which required an immediate action. 2.2 Reviewing Lee’s balanced scorecard against design principles 2.2.1 Whether Lee’s score card achieved what it was meant for The lee’s company scorecard partially delivers what it is intended to make. It doesn’t entirely make its purpose since some important information which is critical in any balanced scorecard has been left out most importantly the employee management row. 2.2.2 Whether Lee’s score card needs additional measures relating to customer perspectives The Lee’s scorecard requires additional steps relating to customer views. This is because much of the information which is imperative and can be of great help has been left out. Examples of such information include; Lee’s component agency to the customer survey, rated quality of Lee’s printers by the customers, customer’s satisfaction by the services offered by the Lee employees and the feedback of the client row. 2.2.3 Whether I would include some metrics of employee’s satisfaction in the learning-and-growth perspective. Yes, because employees are an integral part of any business venture. According to Jean (2008), employees play an important role towards the success and development of any firm. Without their dedication and will to work, they can decide to do less than and adversely affect the output of the company. Managers and executives should be very keen to ensure that employees are satisfied. They can achieve this by involving them in the learning-and-growth development perspective of the business. Moreover, involving different minds in the agenda will bring in new ideas and consequently great results. 2.3 Problems found in Lee’s process of improving quality There are two main problems encountered by the Lee Company while trying to improve quality. Firstly, Lee seems to be lacking a proper manager who can plan a well-structured scorecard which meets all the necessary requirements and that which can achieve the purpose which it is intended to meet. Secondly, Lee has a destitute financial adviser. This is evident from the poor performance by Lee in the area of shareholders. Lee needs to get a well trained financial advisor who can undertake the task of managing the company’s income. Part three 3.1 Strategy map FINANCIAL 1 2 3 CONSUMER 1 2 3 INTERNAL PROCESS 1 2 3 LEARNING & GROWTH 1 2 3 Key In each row, tasks will be executed from number 1 to number 3. 3.2 Cause-and-Effect relationships among the strategic objectives in E-Appliances Balanced scorecard I would expect to see the target for the set objectives; this is usually what the company intends to attain after some time of operation. Then there should be the actual performance which is what the company practically gets after the period set for a particular time. With these two entries in the scorecard, I would then expect to see a percentage of the difference between the actual performance and the target performance. If the difference exceeds 10%, then an immediate action should be taken. If the difference is below 10%, then the activities contributing to the achievement of that program need to be monitored carefully. If the target is attained, then the management should work hard so as to maintain the target and even aim higher. Reference list Christine Mckinty & Antoine Mottier. Designing Efficient BPM Applications: a Process Based Guide for Beginners. O'Reilly Publishers. 2016 Print.- Gong, Y. and Janssen, M. From policy implementation to business process management: Principles for creating flexibility and agility. Elsevier publishers.2011 Print. James F. Chang. Business Process Management Systems. Centege Publishers. 2006 Print. Jean-Noël Gillot. The complete guide to Business Process Management. Willey Publishers. 2008 Print. Marlon Dumas, Marcello La Rosa, Jan Mendling, Hajo A. Reijers. Fundamentals of Business Process Management. Willey Publishers. 2013 Print. Peter Rausch, Alaa Sheta, Aladdin Ayesh: Business Intelligence and Performance Management: Theory, Systems, and Industrial Applications, Springer-Verlag U.K., 2013 print. Rud, Olivia. Business Intelligence Success Factors: Tools for Aligning Your Business in the Global Economy. Hoboken, N.J: Wiley & Sons.2009 Print. Read More