What is Business Performance Management Software?

Business performance management software is the term used to describe a specific product that measures a company’s actual performance by comparing this information to target performance values. Business performance management software is also called corporate performance management, operational performance management or enterprise performance management software. The software itself is considered a business intelligence product.

There are three steps to implementing and leveraging a business performance management software solution. Select the appropriate application, identify Key Performance Indicators (KPIs) and implement the software. The software itself is quite large and is usually installed at the enterprise level. The program requires access to databases and tables of information gathered from accounting, human resources, materials management, sales and other related systems.

Large organizations with existing enterprise resource systems have specialized products designed to meet these needs. For standalone accounting software architectures, transferring data to a data warehouse and leveraging business performance management software, the overall structure may require changes. It is very important to understand the underlying system architecture of your current system in order to determine the features you need for your business performance management software application. The software is designed for small businesses and is priced for enterprise-level implementation.

Identification of key performance indicators is the key to the implementation and effective use of this type of software. A business process analysis should be completed to determine the organization’s priorities, the best data to track this activity, and the metrics available across the various systems.For example, a courier company may have a KPI that pays all invoices within 5 days of the invoice date to avail payment discount. All invoice documents processed in the accounting system must include the invoice date and the processing date. Additionally, business performance management software must be configured to track this activity and report the number of transactions in and out of this range and the cost of missed discount opportunities.

Implementing this type of software takes projects of 6 to 12 months and requires significant information technology staff. Required skills include technology, hardware and software configuration and programming. Training and documentation is also required for business users before starting the solution. Responsibility for maintaining this software, updating KPIs and reviewing reports rests generally with the financial services domain.

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