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BY:-

SHIMPY CHHABRA(09609111)
JATIN SETHI(09609198)
KISHAN KUMAR(09609199)
MICS
MBA(09-11)
TRIMESTER-IV
The Enabling Role of Information Technology for
07-08-2010 Business Performance Management. 1
By-Florian Melchert & Robert Winter
Challenges before organizations
• Challenging market conditions
• High churn rates
• Strong Competitors

Traditional management approaches


• Financial figures
• Centralized analytical planning methods
• LIMITATIONS
- Focus on internal aspect of Co.
- Limited transparency
- Late availability of performance related information
• TO OVERCOME
• - Consider performance as multi dimensional phenomenon

• - Combine both financial and non-financial aspects

The Enabling Role of Information Technology for


Business Performance Management. By-Florian
07-08-2010 Melchert & Robert Winter 2
PERFORMANCE
- Valued contribution to reach goals of an organization.

PERFORMANCE MANAGEMENT
- Aims at systematic generation and control of an organization’s
performance. Involves 4 major activities:--
-- Performance Planning
-- Taking action to control performance
-- Performance Measurement
-- Performance Rewarding

PERFORMANCE REQUIREMENT
-- Co.’s strategy
-- Vision
-- Stakeholders

The Enabling Role of Information Technology for


Business Performance Management. By-Florian
07-08-2010 Melchert & Robert Winter 3
Strategy Change

Modification of business process


& Supporting IS

Innovation on IS

Adjustment of Company’s Strategy

The Enabling Role of Information Technology for


Business Performance Management. By-Florian
07-08-2010 Melchert & Robert Winter 4
Congruence of Business process modelling
and Enterprise Application Integration.

High performance engine that help form


processes that meet your business goals.

It is convergence of business process modeling


and enterprice application intergration.

It is the blue print of a workflow that co-


ordinates activites,resources and data according
to underlying business processes.

Help in building the application integration


scenario.
The Enabling Role of Information Technology for
Business Performance Management. By-Florian
07-08-2010 Melchert & Robert Winter 5
Congruence of Business Intelligence and
Enterprise Application Integration.

Aims at shortening the period of time between


occurrence of the business event and the time
the action is carried out.

Action Time.
- Data Latency
- Analysis latency
- Decision latency

The Enabling Role of Information Technology for


Business Performance Management. By-Florian
07-08-2010 Melchert & Robert Winter 6
Congruence of Business Intelligence
and Business Process Modelling.

Main aim is to control the execution of


business process with data collected
during process execution.

Two mechanism
- For measuring process performance.
- Translation of process analysis result
into recommendations.

The Enabling Role of Information Technology for


Business Performance Management. By-Florian
07-08-2010 Melchert & Robert Winter 7
The business engineering approach proposes three phases to
transform an organization based on certain innovations which have
been identified as having enabling potential for new or improved
business solutions:

(1)(re-)formulation of appropriate business strategies (if applicable /


necessary)

(2) (re-)design of appropriate business processes and appropriate


organizational structures and finally

(3) (re-)development or (re-)adaptation of information systems


according to the business specifications.
The Enabling Role of Information Technology for
Business Performance Management. By-Florian
07-08-2010 Melchert & Robert Winter 8
• Business processes
- cover all activities resulting in a result or benefit for
external customers.
• Support processes
- enable an effective and efficient execution of business
processes.
- incorporate operating an adequate infrastructure and
offering internal services.
• Management processes
- cover all activities for designing, steering, controlling
and enhancing the Organization.

Management processes apply to business processes as well as to


support processes.

The Enabling Role of Information Technology for


Business Performance Management. By-Florian
07-08-2010 Melchert & Robert Winter 9
•Monitoring
•Forecasting
•Planning and Budgeting
•Activity Design
•Communication of Measures

The Enabling Role of Information Technology for


Business Performance Management. By-Florian
07-08-2010 Melchert & Robert Winter 10
•Information logistic processes (ILP)
• Processes for problem solving and decision making (PDP)
• Processes for collaboration and communication support (CCP)

The Enabling Role of Information Technology for


Business Performance Management. By-Florian
07-08-2010 Melchert & Robert Winter 11
BPM and IT enabling do not focus on normative
orientation.

Meeting business requirements for an integrated, flexible


business performance management.

Service orientation, integration middleware, standards for


process specification and execution, as well as reference
models for metrics and standardized process repositories.

Foundation for a better alignment of strategic decision


making and operational business process management.

Foundation for the effective implementation of innovations.

The Enabling Role of Information Technology for


Business Performance Management. By-Florian
07-08-2010 Melchert & Robert Winter 12
The Enabling Role of Information Technology for
Business Performance Management. By-Florian
07-08-2010 Melchert & Robert Winter 13

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