Business activity monitoring system design framework integrated with process-based performance measurement model

Abstract

Recently, strong interests in the real-time performance management are increasing to gain competitive advantages in the rapidly changing business environment. For better business performance or continuous process improvement of an enterprise, real-time measurement and analysis of the performance of managerial activities is essential. Business activity monitoring (BAM) which provides real-time access to key performance indicators or business processes is one of core elements for successful business process management (BPM) system. Since performance measurement cannot be managed independently of business processes, BAM system needs to monitor performance metrics in terms of business process. This paper proposes BAM system design framework integrated with the process-based performance measurement model (PPMM), in which monitored KPIs are closely related with business processes. The proposed PPMM consists of three sub-models: KPI model, process model, and K-P model. To show the applicability of proposed framework, BAM system prototype was also developed using a real case. This paper is expected to be a practical help to the practitioners who are planning and executing the BAM system implementation for continuous process improvement.