The original, classic definition of Business Intelligence (BI) is the reporting and analysis of historical business data. Business data from ERP systems are used in order to analyse and evaluate the situation of the company from different perspectives.
The term Business Performance Management (BPM), also known as Corporate Performance Management (CPM), refers to methods, tools and processes to improve performance and profitability of companies. In addition to processes, analyses and reporting by relying on historical and present data, Business Performance Management also covers future-oriented processes such as planning and forecasts, because without previous planning, it cannot be checked whether the goals have been reached.
In practice, the terms Business Intelligence, Business Performance Management and Corporate Performance Management are used more or less as synonyms and signify systems for
- reporting and
of business data.
Due to various technological and professional demands, the optimal Business Intelligence solution consists of a standardised solution for Financial Intelligence (planning, consolidation, reporting and analysis in accounting) as well as a custom solution for Classic BI (planning, reporting and analysis of all remaining business areas).
From a technical point of view, a Business Intelligence solution consists of the components
- ETL process (Extract, Transform and Load data from the previous system into a data warehouse),
- Data warehouse (central data storage) as well as
- Front-end (graphic user interface for visualisation of data saved in the data warehouse).