Home | Site Map | FAQs | Investor Relations
 

What is Business Intelligence (BI)?

Do I need Business Intelligence in my organization?

How can Business Intelligence benefit my organization?

What is Business Performance Management (BPM)?

How can BPM enhance my organization's performance in today's competitive business environment?

What is the Balanced Scorecard?



1. What is Business Intelligence (BI)?
Business intelligence (BI) is a broad category of application programs and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions. BI applications include the activities of decision support, query and reporting, online analytical processing (OLAP), statistical analysis, forecasting, and data mining.

2. Do I need Business Intelligence in my organization?
All successful businesses have many things in common. One of the commonalities is to make well informed business decisions to gain competitive advantage. And well informed business decisions are all about understanding the company's internal and external environment.

The ultimate objective of business intelligence is to improve the timeliness and quality of information. Timely and good quality information is like having a crystal ball that can give you an indication of what's the best course to take. Business intelligence reveals to you:

  • The position of your firm as in comparison to its competitors
  • Changes in customer behaviour and spending patterns
  • The capabilities of your firm
  • Market conditions, future trends, demographic and economic information
  • The social, regulatory, and political environment
  • What the other firms in the market are doing
You can then deduce from the information gathered what adjustments need to be made.

Businesses realize that in this very competitive, fast pace, and always changing business environment the only thing that will help them gain a competitive advantage over their competitors is how quickly they respond and adapt to change. Business intelligence enables them to use information gathered to proactively respond to changes.

3. How can Business Intelligence benefit my organization?
Some of the more immediate benefits organizations can look forward to from implementing BI are:

  • way to access data in a common format from multiple sources
  • A way to measure business goals by analysing cross-departmental data
  • Insight into customer behaviour and trends
  • Track customer behaviour to improve service and relationships
  • Track specific product sales across regions and distributors to improve production and supply
  • Track internal business trends to improve processes
  • Track external market trends to improve competitiveness
  • Fine tune pricing and marketing policies
4. What is Business Performance Management (BPM)?
Business performance management (BPM) is a methodology designed to optimize the execution of business strategy that consists of a set of integrated, closed-loop, analytic processes, supported by technology that addresses financial as well as operational data.

BPM enables a business to define, measure and manage its performance against strategic goals. The core financial and operational processes of BPM include planning, consolidation and reporting, analysis and the deployment of linked key performance indicators (KPI's) throughout an organization. BPM initiatives help organizations realize the following improvements:

Alignment and Accountability
Timely, reliable and consistent information enables managers and key decision makers to be held accountable for their unit's performance and increases their ability to quickly respond in order to take advantage of competitive opportunities as well as identifying and mitigating potential risks.

Improved Business Insights
Business managers and analysts have a more complete understanding of actual business performance on a timely basis, as well as access to quick and accurate representations of future trend analysis.

Business Agility
Business management strategy can be adjusted as quickly as necessary to maintain competitiveness. This can be established through streamlined communication and by developing a common understanding of each functional area's role, contribution and impact to other interrelated parts of an organization. Achieving this will result in a more precise execution of business plans because strong linkages between high-level corporate objectives and lower-level tactical activities are established with effective business performance management.

5. How can BPM enhance my organization's performance in today's competitive business environment?
The key values in BPM practices are in its capability to consolidate enterprise-wide data and its availability for business users to analyze and make informed decisions. This "single version" of data enhances consistency and accessibility has yielded positive results to many BPM practice adopters. It has:

  • Significantly increased productivity & efficiency of operational staffs
  • Improved accuracy of forecasts
  • Equipped decision-makers with more accurate and timelier information
  • Contributed to gains in shareholder value
Businesses today has adapted well to BPM practices because of the increasing needs to respond to challenging economic market environments. These environments demand improve planning, better operational process monitoring, enhanced ability to analyze and anticipate changes and opportunities and last but not least, more effective operational execution.

If your organization has plans to improve its business strategy in view of increasing profitability, growth, competitiveness, quality and customer satisfaction, Business Performance Management should ideally be on top of your considerations.

6. What is the Balanced Scorecard?
The Balanced Scorecard is a new approach to strategic business management which was developed by Drs. Robert Kaplan (Harvard Business School) and David Norton. In their years of studies of management approaches, they have noted that there were some weaknesses and vagueness of traditional management practices which were primarily focused on the financial perspective of traditional organizations. The balanced scorecard approach, on the other hand, aims to provide a clear prescription as to what organizations should measure in order to "balance" the financial measurements.

The Balanced Scorecard is a management system that enables organizations to clarify t heir vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. Kaplan and Norton described the innovation of the Balanced Scorecard as:

"The Balanced Scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation."

The balanced scorecard suggests that we view the organization from Four Perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives:

  • The Learning and Growth Perspective
  • The Business Process Perspective
  • The Customer Perspective
  • The Financial Perspective
Terms of Use | Trademarks | Privacy Statement   Copyright Cetheus MSC Berhad. All Rights Reserved