Based on a recent survey by the Gartner Group, Business Intelligence (BI) analytics and Corporate Performance Management (CPM) have been a top prioriy for Chief Information and Chief Financial officers for over 4 years. Analyzing and enhancing corporate performance is important because it can help organizations find bottlenecks & inefficienes and help exploit areas that are profitable.
As I've discussed before, Corporate Performance Management is the process of managing an organizations strategy, and describes the methodologies, metrics, processes and systems used to monitor and manage a company's business performance. Business Intelligence is an analytical process that produces insights, suggestions and recommendations for the managerial decision makers.
While both terms are used synonymously, they are different. As a concept, CPM represents the strategic deployment of Business Intelligence solutions. BI provides the backbone for CPM. BI is an enterprise information platform for querying, reporting and analyzing performance. It involes grabbing raw data from disparate source systems and integrating it into a data warehouse. CPM is about leveraging that information in a meaningful way, in an effort to drive & measure corporate performance and decision making.
Strategy
BI: Offers the tools necessary to improve decision making, but not necessary linked to organizational strategy
CPM: linked to strategy through KPI's
Purpose
BI: Helps the organization gather relevant data (bottom up approach)
CPM: Helps the organization compare data to organizational goals (top down approach)
Scope
BI: One more departments or functional areas
CPM: Enterprise wide
Orientation of application
BI: reactive (analyzing past performance)
CPM: proactive (planning for future)
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