First, the "upsurge" of enterprise performance management in China
1. The "satisfaction" of performance management is not high.
At present, domestic enterprises have set off a performance management upsurge, and KPI is popular in this upsurge, but the application effect of KPI in enterprises is not satisfactory. According to an international survey, the most commonly used types of performance management in China are management by objectives (MBO) and key performance indicator system (KPI), but most interviewees are not satisfied with their company's performance management system.
2. "Quantitative" assessment is everything.
At present, in the performance management of enterprises, "quantification" accounts for an overwhelming advantage. Enterprises try to express their performance management objectives by quantity, but pay insufficient attention to other aspects of performance management. The reason why assessment and quantification are so emphasized is that many enterprises are not clear about the purpose of performance management and think that performance assessment is all performance management.
What is the purpose of performance management?
The purpose of performance management is to improve the management system, improve the management efficiency of the organization and finally optimize and improve the existing management through management diagnosis and evaluation in the dynamic process; The ultimate goal is consistent with the goal of enterprise management-that is, maximizing shareholder value.
The "performance management" that enterprises quantify for the sake of quantification is "seeing the trees but not the forest"-quantification occupies the main energy, misleads the real direction of performance management, and it is difficult to achieve effective performance management.
3. Insufficient technical means: massive data and information "islands" coexist.
Many enterprises in our country have implemented ERP system and realized the automation of business processing, but many enterprises have not really realized the automation of management information in management decision.
At present, the process of enterprise performance management is: ERP system produces a large number of business data, and the management department pours out the data from ERP on this basis, and manually sorts and analyzes the data by using database processing or EXCEL, and calculates and analyzes according to the evaluation methods of enterprise performance management, such as KPI, and finally obtains the "quantity" result of performance evaluation. The consequences of this process are: on the one hand, ERP has produced a huge amount of business data, on the other hand, enterprises can't automatically obtain timely information useful for management decision-making and performance management from these massive data, so they have to resort to the secondary "development" of data-database programming or manual processing, lacking technical support for data mining. In this way, there is an "island" phenomenon of massive data and management information, and management decisions have to rely heavily on subjective experience judgment.
In view of the contradiction between the increasing amount of data and the analysis demand that decision makers can't meet, the business intelligence solution (BI) based on ERP system first came into being and developed abroad.
Second, the practice and challenges of BI
1. The significance of business intelligence-the value of mining data
In essence, business intelligence is to transform an organization's business data into information that is easy to understand and has high value, and distribute the right information to the right people at the right time and in the right way. According to the definition of International Data Corporation (IDC), business intelligence is the process of collecting, processing, managing and analyzing business information, with the purpose of enabling decision makers at all levels of an enterprise to gain knowledge or insight, and prompting them to make more favorable decisions for the enterprise faster. Business intelligence generally consists of data warehouse, data query and report, data mining, online analysis (OLAP), budget and forecast. In other words, business intelligence is to look back on the past and look forward to the future from today's perspective, turning past information into today's knowledge and then into tomorrow's wealth.
2. implementation 2. Bisexual
At present, domestic enterprises are facing the challenge of "making foreign things serve China" when implementing business intelligence for performance management. According to our experience:
1) The key success factors of BI project come from inside the enterprise, and the main factors are:
(1) Enterprise management's understanding of performance management and management informatization
It is mainly the true understanding of the purpose of BI and the purpose of performance management by enterprises, which will not be "fashionable" and "quantitative" as we said earlier.
(2) the stability of enterprise management:
The management process of the enterprise is stable and sound.
The internal management reporting mechanism is stable and the statements are basically fixed.
The organizational structure of the enterprise is basically stable, and there are no major M&A activities in the near future.
Frequent mergers and acquisitions will lead to fundamental changes in the system architecture.
Great changes in organizational structure will make the system architecture design unable to adapt.
(3) Acceptance and participation of enterprise projects:
Customer's expectation and understanding of system implementation
Acceptance and active participation of customer finance department
Close cooperation and internal communication between customer IT department and finance department.
2) The main factors from outside the enterprise (mainly consulting companies) are:
(1) Project management capability of the implementation team
The implementation team must have a comprehensive performance management method, such as the DTT performance management framework mentioned above.
Project management and implementation experience of the implementation team
Implement the reasonable control of the project budget by the team.
(2) the project implementation ability of the implementation team
Implement reasonable composition and division of labor within the team.
Effective overcoming and improvement of technical difficulties in project implementation
Effectively control and guide customer needs, truly understand customer needs, and correctly grasp the direction of project implementation.
(3) Establish and maintain good customer relations
Effective communication and timely contact with enterprise users.
User-friendly, simple and practical project implementation document
The user manual is rich in content and easy to read.
Good user training
Third, the key steps for the success of BI project
Combining our methods and experience, we have the following key steps to introduce business intelligence into enterprises:
(1) requirement definition
Requirements definition is the foundation of the whole project, and it is also one of the key steps that affect the success or failure of the project.
(2) Analysis of current situation
Detailed analysis of the existing resources of enterprises, including the capabilities of existing systems and the capabilities of managers. For example, the system can provide technical data and reports, and can support decision analysis; Ideas, skills, qualities, etc. Managers.
(3) Analysis of current situation/demand difference
Analyze the difference between the current situation and the demand, and work out the scope of the solution for the next step.
(4) Design of solution group
According to the analysis results of the status quo/demand difference, from the perspective of management feasibility and technical feasibility, a solution group that can meet the needs of enterprises is designed.
(5) Decision-making/system selection
Submit the candidate systems and corresponding solution groups to the top management for final determination. Many domestic enterprises are blind in the decision-making of ERP system selection. In fact, system selection is a complicated task, which requires a set of scientific and rigorous investigation and evaluation methods and tools. Therefore, how to choose the appropriate BI software is another important step in the process of BI introduction.
(6) implementation
Choosing a professional consulting company is precisely the key factor that affects the success of the project implementation. For enterprises, when choosing consulting companies, they need to consider: the company's understanding of BI market and products; Whether the company has a set of scientific implementation methodology and professional tools, such as scoring methods and tools for different BI software; The company's international/domestic industry knowledge and international best practice experience.
Although the application of BI in performance management is still facing various challenges at present, when China enterprises participate in the WTO competition, they must unswervingly follow the road of management informationization, and unswervingly use the "localization" of BI to improve the management level and decision-making quality of enterprises, so that business intelligence can truly become an effective tool for performance management and serve the development and value creation of enterprises.