Occasional thoughts on business process management, eprocurement, customer service, the dark art of sales and the creatures that inhabit these worlds.

Thursday, November 16, 2006

BI is nothing without process focus

We hosted the BPMG Sydney Chapter meeting this evening and there was some spirited discussion on a range of topics - the one that tickled my fancy was a forceful statement from a Professor in academia.

" BI is nothing without process focus" - and it rings so true - in fact I have blogged it separately here. You can measure to your hearts content and configure dashboards and guages and graphs and "top 10's" until you are blue in the face but until you link the data source to process and the decision outcome from the metrics back to process they are all pretty meaningless.

If you are going to build a BI capability then it may be wise to consider the various levels of KPI applicabale in the business. There will be the strategic KPIs pointing to market share, territory volume sales etc, then there are the process group style KPIs such as inventory management etc, and then there are the individual task KPIs such as supplier invoices with POs declared, DIFOT ratios etc.

When looking at KPIs you need to know how they interrelate to each and what the actual value chain of the business is. Then as the metrics show signs of offending benchmarks you know where to go looking down the line for the problems - and those problems will always be process issues. You have to link performance and process together for both a healthy, wholistic view of the business and also to know how to react when things show signs of stress.

My B-Performance-M = B-Process-M hypothesis was reinforced.

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