Browse Prior Art Database

A generic framework for value aggregation in Business Performance Management systems

IP.com Disclosure Number: IPCOM000126704D
Original Publication Date: 2005-Jul-29
Included in the Prior Art Database: 2005-Jul-29
Document File: 8 page(s) / 173K

Publishing Venue

IBM

Abstract

Based on the Balanced Scorecard theory (http://www.balancedscorecard.org/), Business Performance Management (BPM for abbreviation) systems can help company executives to link their long-term strategy to short-term objectives. Such a system provides an integrated view on strategies, objectives and measures of progress and thus enables executive management team to monitor the performance of individual employee or business unit from different perspectives – the Balanced Scorecard theory looks at a company from four different perspectives. By providing an up-to-date overall picture of a company’s performance, BPM system is quite valuable for today’s organizations to make quick decisions in a dynamically changing and increasingly competitive market. In this paper, we present a generic framework for the BPM applications.This framework is unique in terms of: 1) it enables value aggregation on different value types and/or mixed value types; 2) it supports different aggregation types (or roll-up types, like average, additive, etc) that are tied to different linkages between performance types; 3) it allows value aggregation to operate on a dataset that is before a specified timestamp; 4) it provides both batch mode aggregation and real-time mode aggregation to meet various business requirements and performance considerations. By using our framework, it will greatly reduce the efforts of building a BPM system since the many parts of a BPM system, especially the Value Aggregation’s part, can be easily implemented by leveraging this flexible framework.

This text was extracted from a PDF file.
At least one non-text object (such as an image or picture) has been suppressed.
This is the abbreviated version, containing approximately 18% of the total text.

Page 1 of 8

A generic framework for value aggregation in Business Performance Management systems

1. Background: What is the problem solved by your invention? Describe known solutions to this problem (if any). What are the drawbacks of such known solutions, or why is an additional solution required? Cite any relevant technical documents or references .

Based on the Balanced Scorecard theory ( http://www.balancedscorecard.org/ ), Business Performance Management (BPM for abbreviation) systems can help company executives to link their long-term strategy to short-term objectives. Such a system provides an integrated view on strategies, objectives and measures of progress and thus enables executive management team to monitor the performance of individual employee or business unit from different perspectives - the Balanced Scorecard theory looks at a company from four different perspectives. By providing an up-to-date overall picture of a company's performance, BPM system is quite valuable for today's organizations to make quick decisions in a dynamically changing and increasingly competitive market.

According to the Balanced Scorecard theory, performance indicators (or performance data, we use them interchangeably in this document) must be derived from and tied to the organization's performance objectives, which translate the organization's strategies into specific action items in a top-down way. The performance indicator is basically represented by numbers in different types, say currency, percentage, etc. A sales person's quota could be one example of the performance data. To improve and assure execution, linkages between different objectives need to be set up to reflect the relationship of contribution. For example the subordinates' performances contribute to the direct reporting manager's performance. Those linkages may have different types and should be configurable in the BPM system to meet different kinds of requirements from different organizational structure. In order to get the performance data of the employees at higher levels or those who have other employees' performance data contributed to theirs, the system should be able to calculate the performance data that are dependent on others. Also, the BPM system should be able to timely update one person's performance data to reflect changes of related performance data if they are changed. We use the term 'Value Aggregation' to describe the process of rolling up the actual performance data along the linkages among different objectives of different persons within one organization. This is exactly the issue we are trying to address by the proposed framework. 'Value Aggregation' is essentially critical to the success of a serious BPM system. For a large company, such as IBM, there could be so many sub-organizations, employees, and different objectives of the employees and business units. And the linkages could be even complicated. Therefore, effectively aggregating the performance data of diff...