Driving Strategy through Business Intelligence
In this post I assume that an organisation already has a well defined strategy that is understood by all of its people. The question is how to drive the strategy to achieve valuable outcomes?
First step is to convert the strategic goals to performance targets for each business unit in the organisation. The organisation can be divided to financial units and operational units. These units are run by people through processes and with the support of underlying technological infrastructure. Management of Suppliers, Partners and Customers also has to be added to complete the picture.
Once the organisation has allocated the performance targets for each unit, i.e. performed the mapping of the strategy to performance metrics, the next step is to obtain the required information for continuous measurement of the defined metrics. Usually there is problem with either availability or quality of the required information. Business Intelligence can be used to identify the sources and validity of these information via various methodologies and tools, such as Asset Data Management, Data Warehousing or Data Federation. Business Intelligence also can help with standard ways of accessing these information via various management Information visual outputs, and in case of strategy, a Balanced Scorecard.
I will write more about this topic in my future posts.
In: Performance Management · Tagged with: Balance Scorecard, Business Intelligence, Performance Management, Strategy
Critical Success Factors and Key Performance Indicators
The drivers of strategy in an organisation are those that contribute to the vision of the company. These factors, once identified, are known as “Critical Success Factors” or CSFs.
For an organisation to stay aligned to its strategy plans, a set of key measures are put in place to quantify the management objectives. These performance metrics are “Key Performance Indicators” or KPIs.
Examples:
CSF: Highest Customer Satisfaction
KPI: Number of Customer Complaints with target to reduce this number
KPIs should have a target, upper and lower tolerance, and the way they are measured plus how often the measurement happens. For example, Number of Customer Complaints are measured daily, but the KPI performance measurement is monthly with the target of less than 5% and the tolerance of +/- 1%.
In: General · Tagged with: CSF, Key Performance Indicator, KPI
Enterprise Intelligence!
Enterprise Intelligence! After so many years of working in Software Development Life Cycle, managing business application development and specifying tools to collect, insert, update and query data, it is time to see how information can become real value for organisations. This site captures some of my research and experience with people, processes, partners and products, for creating business value internally and externally.