BPM is the abbreviation for business performance management. It is a business management approach that entails aspects of reviewing the overall business performance and determining how the business can better reach its goals. These activities are aided by software tools, called BPM tools.
BPM is often thought of as a business strategy that enables businesses to efficiently collect, aggregate and analyze data from various sources in order to take the most appropriate business action. It enables businesses to:
Business performance management requires the alignment of strategic and operational objectives to the business activities in order to manage performance. By collecting and analyzing data, business managers are more informed about the company’s position and can make better decisions as a result.
Successful BPM enables mangers to identify problems and produce more accurate and reliable forecasts. Business performance management is also used to analyze risks and predict business outcomes.