Business Performance Management - Meets Business Intelligence ppt

ibm.com/redbooks Business Performance Management . . . Meets Business Intelligence Chuck Ballard Colin White Steve McDonald Jussi Myllymaki Scott McDowell Otto Goerlich Annie Neroda Proactive monitoring and management to maximize business performance Continuous data workflows for real-time business intelligence Information integration for an enterprise view Front cover Business Performance Management . . . Meets Business Intelligence July 2005 International Technical Support Organization SG24-6340-00 © Copyright International Business Machines Corporation 2005. All rights reserved. Note to U.S. Government Users Restricted Rights Use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM Corp. First Edition (July 2005) This edition applies to Version 8.1 of DB2 UDB, Version 8.2 of DB2 Alphablox, Version 4.2.4 of WebSphere Business Integration, Version 5.0 of WebSphere Portal Server, and Version 5.0 and Version 5.1 of WebSphere Application Server, Version 3.5 of WebSphere MQ Workflow, Version 5.3 of WebSphere MQ, and Version 5.1 of WebSphere Studio Application Developer. Note: Before using this information and the product it supports, read the information in “Notices” on page vii. © Copyright IBM Corp. 2004. All rights reserved. iii Contents Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Trademarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ix The team that wrote this redbook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x Become a published author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Comments welcome. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Business innovation and optimization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Business performance management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Optimizing business performance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Contents abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Chapter 1. Understanding Business Performance Management . . . . . . . 11 1.1 The BPM imperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 1.2 Getting to the details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.2.1 What is BPM again? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.2.2 Trends driving BPM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 1.2.3 Developing a BPM solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 1.3 Summary: The BPM advantage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Chapter 2. The role of business intelligence in BPM. . . . . . . . . . . . . . . . . 27 2.1 The relationship between BI and BPM . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 2.1.1 Decision making areas addressed by BPM . . . . . . . . . . . . . . . . . . . 29 2.1.2 BPM impact on the business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 2.2 Actionable business intelligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 2.2.1 Key Performance Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 2.2.2 Alerts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 2.2.3 Putting information in a business context . . . . . . . . . . . . . . . . . . . . . 35 2.2.4 Analytic applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 2.3 Data warehousing: An evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 2.3.1 The need for real-time information . . . . . . . . . . . . . . . . . . . . . . . . . . 37 2.3.2 Data warehousing infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 2.3.3 Data federation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 2.4 Business intelligence: The evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 2.4.1 Integrating BPM and BI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Chapter 3. IBM BPM enablers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 iv BPM Meets BI 3.1 IBM BPM Platform. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 3.1.1 User Access to Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 3.1.2 Analysis and Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 3.1.3 Business Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 3.1.4 Making Decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 3.1.5 Event Infrastructure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 3.1.6 Enabling IT to help the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 3.1.7 Bringing it all together . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 3.2 Web services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 3.2.1 The promise of Web services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 3.2.2 Web services architecture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 3.2.3 IBM Web services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 3.2.4 Using DB2 as a Web services provider and consumer. . . . . . . . . . . 82 3.2.5 WebSphere Information Integrator and Web services . . . . . . . . . . . 86 Chapter 4. WebSphere: Enabling the solution integration . . . . . . . . . . . . 97 4.1 IBM Business Integration Reference Architecture. . . . . . . . . . . . . . . . . . . 98 4.1.1 BIRA components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 4.2 IBM WebSphere business integration . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 4.2.1 WebSphere Business Integration Modeler . . . . . . . . . . . . . . . . . . . 104 4.2.2 WebSphere Business Integration Monitor. . . . . . . . . . . . . . . . . . . . 104 4.2.3 WebSphere Business Integration Server Foundation . . . . . . . . . . . 105 4.2.4 WebSphere Business Integration Server . . . . . . . . . . . . . . . . . . . . 111 4.2.5 IBM WebSphere MQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 4.2.6 WebSphere Business Integration Connect . . . . . . . . . . . . . . . . . . . 122 Chapter 5. DB2: Providing the infrastructure . . . . . . . . . . . . . . . . . . . . . . 127 5.1 Data warehousing: The base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 5.1.1 Scalability for growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 5.1.2 Partitioning and parallelism for performance. . . . . . . . . . . . . . . . . . 130 5.1.3 High availability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 5.2 Information integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 5.2.1 Data federation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 5.2.2 Access transparency. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 5.3 DB2 and business intelligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 5.3.1 Continuous update of the data warehouse . . . . . . . . . . . . . . . . . . . 135 5.3.2 Concurrent update and user access . . . . . . . . . . . . . . . . . . . . . . . . 137 5.3.3 Configuration recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 Chapter 6. BPM and BI solution demonstration. . . . . . . . . . . . . . . . . . . . 143 6.1 Business scenario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 6.1.1 Extending the scenario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 6.1.2 Scenario product architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 6.1.3 Hardware and software configuration . . . . . . . . . . . . . . . . . . . . . . . 148 Contents v 6.2 Implementing the BPM scenario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 6.2.1 The business processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 6.3 Adding BI to the demonstration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 6.3.1 Federation through WebSphere Information Integrator . . . . . . . . . 161 6.3.2 Federation through DB2 XML Extender . . . . . . . . . . . . . . . . . . . . . 162 6.4 Adding DB2 Alphablox to the demonstration. . . . . . . . . . . . . . . . . . . . . . 166 6.4.1 Configuring the components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 6.5 Adding WebSphere Portal to the demonstration . . . . . . . . . . . . . . . . . . . 170 6.5.1 Configuring the components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 6.6 Completing the scenario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 6.7 Additional dashboard examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Appendix A. Getting started with BPM . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Getting started with BPM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Selecting measures and KPIs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 Abbreviations and acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189 Related publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 IBM Redbooks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Other publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Online resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 How to get IBM Redbooks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Help from IBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 vi BPM Meets BI © Copyright IBM Corp. 2004. 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You may copy, modify, and distribute these sample programs in any form without payment to IBM for the purposes of developing, using, marketing, or distributing application programs conforming to IBM's application programming interfaces. viii BPM Meets BI Trademarks The following terms are trademarks of the International Business Machines Corporation in the United States, other countries, or both: Eserver® Redbooks (logo) ™ iSeries™ z/OS® AIX® Cube Views™ CICS® Database 2™ Distributed Relational Database Architecture™ Domino® DB2 Connect™ DB2 OLAP Server™ DB2 Universal Database™ DB2® DRDA® Everyplace® Hummingbird® Informix® Intelligent Miner™ IntelliStation® IBM® IMS™ Lotus Notes® Lotus® MQSeries® Notes® Redbooks™ SupportPac™ Tivoli Enterprise™ Tivoli® WebSphere® Workplace™ The following terms are trademarks of other companies: Pentium, Intel logo, Intel Inside logo, and Intel Centrino logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States, other countries, or both. 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[...]... managing business performance Business intelligence (BI) is a key enabler of BPM Hence the title of this redbook, Business Performance Management Meets Business Intelligence 2 BPM Meets BI Business performance management BPM is all about taking a holistic approach for managing business performance Businesses align strategic and operational objectives, and business activities, to fully manage performance. .. business intelligence, process management, business service management, activity monitoring, and corporate performance management to achieve a single view of their enterprise The elements of that holistic approach are depicted in Figure 1 Business Intelligence Business Activity Monitoring Business Process Management Business Performance Management Corporate Performance Management Business Service Management. .. including: Business Performance Management Enterprise Performance Management Corporate Performance Management Business Intelligence Business Services Management Business Process Management Business Activity Monitoring More information on BIO will be forthcoming, but, for purposes of this redbook, we will continue to use the term BPM BPM is a paradigm that enables success by proactively managing business performance. .. business metrics with business intelligence for assessing KPIs relative to business goals Advanced business simulation and performance optimization based on real-time monitoring of business activities Proactive monitoring and business alerts User-customized analytics and reporting of On Demand business and IT performance information Industry-specific business performance management solutions (financial... real-time process monitoring Business Service Management: including systems monitoring and optimization of IT operations to meet the business goals The results of these capabilities are brought together at the point of integration for management and decision-makers - the business portal © Copyright IBM Corp 2004 All rights reserved ix As businesses move forward in the evolution to real-time business intelligence, ... related business technologies and capabilities, notably business process modeling, business process integration, business intelligence, and business services management Business process modeling and integration choreographs the interactions among people, processes, and information to enable the execution of business operations The resulting integrated and mediated environment provides an end-to-end view... started 10 BPM Meets BI 1 Chapter 1 Understanding Business Performance Management Business performance management (BPM) is a key business initiative that enables companies to align strategic and operational objectives with business activities in order to fully manage performance through better informed decision making and action BPM is generating a high level of interest and activity in the business and... business process management This is not the same thing as business performance management As a result, instead of BPM, some people prefer the term corporate performance management (CPM), while still others prefer enterprise performance management (EPM) Listening to speakers at conferences or reading papers, you might also hear BPM equated to budgeting, or to financial consolidation, or to Sarbanes-Oxley... risk -management functions Basel II does, however, provide businesses with the opportunity to free themselves from legacy problems and out-of-date management structures Basel II encourages companies to develop a more streamlined and responsive organization, and to provide relevant information for better risk management, performance management, and capital allocation decisions Chapter 1 Understanding Business. .. such as business process integration, business intelligence, and enterprise application integration It enables businesses to: Sense, and respond to customer needs, competitive threats, and regulatory pressures See, understand, and use business information to adapt their business processes and IT infrastructure to optimize business performance Business performance management solutions deliver continuous . including:  Business Performance Management  Enterprise Performance Management  Corporate Performance Management  Business Intelligence  Business Services Management  Business Process Management. Business Process Management Business Process Management Corporate Performance Management Corporate Performance Management Business Service Management Business Service Management Business. Activity Monitoring Business Activity Monitoring Business Intelligence Business Intelligence Business Performance Management Business Performance Management 4 BPM Meets BI similar, but