Business Performance Management (BPM), Business Process Improvement...

Business Performance Management (BPM)

Business Performance Management (BPM) is a set of integrated cyclical processes of management and analysis of the financial and operational activities of an enterprise (Figure 15.5). The term BPM system is used as a management concept and as an information system.

Key management areas: Finance, Business Organizational Structure, Products, Customers, method of targeted management - Manage by Objectives. Management tasks must meet SMART requirements: Specific, Measurable, Acheivable, Realistic and Time-related. Information technologies BPM systems are developed on the basis of the Business Intelligence (BI) platform and BPM-applications. The BPM-system is integrated with information sources of information.

Typical architecture of BPM systems

Fig. 15.5. Typical architecture of BPM systems

Business Process Improvement (BPI)

Business Process Improvement (BPI) is a strategic management standard aimed at continuous improvement of business processes (Figure 15.6) at the enterprise. The following levels are distinguished:

1 . Dynamic-chaos - business processes do not have qualitative and quantitative estimates.

2. Control - the adjusted accounting and control, the main business processes are repeatable and manageable, but there is no optimization, there are no exact standards. The main business processes have a description, but there is no qualitative assessment.

3. Optimization - search and simplification of the main business processes, reduction of production costs. Business processes are documented, standardized. Operational control and analysis of production progress, optimization of planning, the formation of a system of metrics for business processes.

Fig. 15.6. Business Process Improvement Levels

4. Adaptation - the adaptability of business processes to the conditions of the external environment. Formation of internal quality standards of business processes; linking strategic and operational plans; feedback.

5. World class - the enterprise's ability to form a market. The enterprise is able to manage the quality of processes throughout the entire chain, including supply, production, sales, service; optimization of business processes; current control is based on change management; formalization of processes and market prospects make it possible to calculate strategic plans and optimize the ways to achieve them.

To assess the quality of finished products, criteria have been developed (Figure 15.7), which are associated with BPI levels.

At the heart of the improvement of business processes (raising the level of BPI) is the modeling of business processes, the use of a certain set of methods included in ERP standards and quality management system standards.

Model of organizational development of the enterprise

The economic activity of the enterprise covers the value chain: innovation, operations, marketing,

Quality Levels of Finished Products

Fig. 15.7. Quality Levels of Finished Products

distribution, sales, service. Strategic management (management) of an enterprise is an activity connected with the setting of goals and objectives (based on a vision and a mission), maintaining the relationship between the enterprise and its environment that enable it to achieve its goals, correspond to its internal capabilities and allow it to remain receptive to external requirements. The main stages of strategic management: analysis of the external and internal environment, the formulation of the mission of the organization, the definition of its objectives, strategic analysis and the development of strategies to achieve these goals, based on the concept of corporate strategy, the implementation of strategies , strategic controlling (analysis) of implementation of strategies (determination of the need for mission correction, goals, strategies or measures for their implementation).

Among the groups of basic strategies are groups such as corporate, product, production, management and resource. The system of strategic management provides forecasting, planning, economic analysis, organization, operational regulation, accounting and control. An enterprise business model is created for the enterprise, which is a set of information models that provide the necessary completeness and accuracy of the business description: a goal-setting model, an organizational-functional model, a functional-technological model, Role model and data structure model. To manage the organizational development of the enterprise, adjustments are made to the business model on the basis of a strategic forecast; simplicity and accessibility of the system description of the enterprise allow to improve the management system.

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