For example, with BAM, you may want to be warned when it is time to order more of a certain product while minimizing inventory. Analysis would help us determine the ideal setting for this KPI, so that supplies do not run out completely.
The following guidelines should be observed when choosing or customizing business activity monitoring software:
- KPIs need to be actionable. If there is no direct action that can be taken from a change in a specific KPI, then it does not belong in the BAM software.
- BAM requires an analytical mindset in the organization. Often, operational managers are highly confident in their ability to mange by intuition. For a BAM project to be a success, the culture of the organization may have to change from instinct driven to data driven.
- KPI settings should be continuously monitored and assessed to determine their effectiveness. The goal of the BAM project should be to increase corporate performance, and this should be reflected in adjustments to KPIs over time.
This was first published in July 2007