Business Value Creation through BPM and Operational Business Intelligence Integration

Business Value Creation through BPM and Operational Business Intelligence Integration

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Business Value Creation through Business Processes Management and Operational Business Intelligence Integration Olivera Marjanovic University of Sydney, Australia o.marjanovic@econ.usyd.edu.au Abstract Current approaches to Business Process Management (BPM) and operational Business Intelligence (BI) integration have been very limited and simply reduced to the problem of technical integration between BPM and BI systems. This paper argues that further opportunities for business value creation could be discovered through systematic analysis of the non-technical aspects of BI and BPM integration, especially in terms of strategy alignment, human-centered knowledge management and ongoing improvement of BI supported processes. The paper proposes a theoretical framework founded in the related research in BPM, BI and Knowledge Management (KM) fields and describes how it has been used to guide our empirical case study research in service organisations in the context of BI-supported customer-facing processes. 1. Introduction An ever increasing volume of business data that a typical organisation needs to manage, analyse and ultimately turn into actions, has fast tracked the field of Business Intelligence to the top of the CIO’s and CEO’s priority lists worldwide [1]. While organisations with enterprise-wide data warehouses will continue to benefit from the strategic BI, in terms of long- term decision making support, dynamic nature of everyday business creates a need for a different type of tools to be placed in the hands of operational decision makers. Operational BI is now bringing powerful analytical tools from the back office and designated knowledge workers, to the front office and customer-facing employees, turning them into a new type of knowledge workers. Supported by BI tools that are giving them more insight into customers’ behaviour, these employees are now in a position to “inject” more personalised knowledge into their business processes (BP) making them harder to copy by their competitors.”Operational BI builds on existing technology standards to make business intelligence more flexible, transparent and cost-effective, by tightly integrating BI with organisation’s constantly evolving business processes” [2]. Real-time decision support in the context of operational, customer-facing processes has created a pressing need for better understanding of BI and BP integration, especially in terms of value creation. “The business value of BI lays in its use within management processes that impact on the operational processes which in turn, drive revenue or reduce costs, as well as in its use within those operational processes themselves” [3]. As more organisations are gradually reaching a higher level of BI maturity, they are becoming increasingly aware that BI-supported BPs need to be managed, improved or even redesigned to take the full advantage of BI solutions. BI leaders are now starting to consider BP-related issues that have been the main focus
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This note was uploaded on 03/23/2011 for the course COMPUTER S DIT09M1-10 taught by Professor Saman during the Spring '10 term at Sheffield Hallam.

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Business Value Creation through BPM and Operational Business Intelligence Integration

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