Management

Introduction
As the Information Technology(IT) implementation is getting more and more attention in the business firms and also its relationship with the efficiency achievement is also under great discussions and is not clear, so we have tried to elaborate IT and efficiency relationship. The IT industry has developed several new concepts and tools to meet business requirements for a highly integrated, low latency, adaptive !fficiency management support. In this report, recent trends in the IT mar"et are also analy#ed. $ertain trends are identified which contribute to an appropriate IT support for business efficiency management. As a conceptual foundation of performance management system implementations, it support processes for business efficiency management proposed. All findings are based on a large scale of researches on both the manufacturing and service companies.

Purpose of The Report

The purpose of this report is to see the implementations of IT in the organi#ation and its relation with performance and efficiency.

Methodology
To collect the data and information related to this report we have used different techniques .e.g. %tudied different research articles related to the topic of the report. $onsulted different boo"s of management and human resource management and computers. $onsulted different related information through search on internet. %tudied different sectors of businesses in which IT is implemented i.e. ban"ing sector, manufacturing sector, service sector. %o our report is consisting of the information coming through these sources.

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Management
'rocess of coordinating wor" activities so that they are completed efficiently and effectively with and through other people. The 'rocess represents ongoing functions or primary activities engaged in by managers. Management of a place involves ma"ing conscious choices about what happens to the place and ta"ing action to ma"e those things happen. These functions are typically labeled as planning, organi#ing, leading and controlling and some boo"s include staffing also. %ome other definitions are given as following( Management is the process of designing and maintaining as environment in which individuals, wor"ing together in groups, efficiently and effectively accomplish the selected aims. The act of directing and controlling the affairs of the business in an efficient and effective way is "nown as management. The act of controlling production processes and ensuring that they operate efficiently and effectively) also used to direct the design, development, production, and mar"eting of a product or system. This definition is typically related to the manufacturing sector. Individuals in an entity that have the authority and the responsibility to manage the entity are "nown as managers. The positions of these individuals, and their titles, vary from one entity to another and, to some e*tent, from one country to another, depending on the local laws and customs, but the ma+or functions performed by them are almost the same. The process of performing these functions is "nown as management. !ffective use and co ordination of resources to achieve pre defined ob+ectives is "nown as management. The activity consisting of those tas"s that are performed to ensure that the mission of a pro+ect is fulfilled by planning, leading, organi#ing and controlling its scope, schedule, costs, resources, and communication Management is concerned not only with getting activities completed (effectiveness) but also with doing so, as efficiently as possible.

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Different Functions of Management

There are many functions performed by the manager but the management authors normally categori#e them as following( In fact these are the ma+or functions performed by each and every manager.

Planning
'lanning involves selecting missions and ob+ectives and the actions to achieve them) it requires decision ma"ing that is, choosing future courses of action from among alternatives. Management function that involves the process of defining goals, establishing strategies for achieving those goals and developing plans to integrate and coordinate activities.

Organizing
The part of management that involves establishing as intentional structure of roles for people to fill in an organi#ation. It is intentional in the sense of ma"ing sure that all the tas"s necessary to accomplish goals are assigned and, it is hoped, assigned to people who can do them best. The 'urpose of an organi#ing structure is to help is creating an environment for human performance. Management function that involves the process of determining what tas"s to be done, who is to them, how to do them, how the tas"s are to be grouped, who reports to whom, and where decisions are to be made.

Leading
-eading is influencing people so that they will contribute to organi#ation and group goals) it has to do predominantly with the interpersonal aspect of managing. Management function that involves motivating subordinates, influencing individuals or teams as they wor", selecting the most effective communication channels, or dealing in any way with behavior issues.

Controlling
$ontrolling is measuring and correcting individual and organi#ational performance to ensure that events conform to plans. It involves

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measuring performance against goals and plans, showing where deviations from standard e*ist, and helping to correct them. Management function that involves monitoring actual performance, comparing actual to standards, and ta"ing actions if necessary.

Staffing
%taffing involves filling and "eeping filled, the positions in the organi#ation structure. This is done by identifying wor" force requirements) inventorying the people available) and recruiting, selecting, placing, promoting, appraising, planning the careers of, compensating, and training etc. ote! %ome boo"s include /staffing0 as a separate function while others not.

"fficiency# "ffecti$eness %Producti$ity

"fficiency
The relationship between inputs and outputs, see"s to minimi#e resource costs. 1etting the most output from the least amount of input also referred to as 23oing things right4 i.e.) efficiency. The ratio of the output to the input of any system is "nown as its efficiency. %"illfulness in avoiding wasted time and effort) 5she did the wor" with great efficiency5 !fficiency is the ratio of the wor" output to the wor" input. It is normally e*pressed as a percentage. An ability to perform well or achieve a result without wasted energy, resources, effort, time or money. 1reater efficiency is achieved where the same amount and standard of services are produced for a lower cost, if a more useful activity is substituted for a less useful one at the same cost or if needless activities are eliminated. The most standard definition is the ratio of effective or useful output to the total input of any system, whether this is the energy delivered to run a machine or the natural resources consumed to produce products. !conomists have ta"en a different tac" and define 5efficiency5 as socially optimal resource allocation Managers deal with scarce inputs including resources such as people money and equipment so they are concerned with the efficient use of those resources.

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The ratio of the output to input power times &77, e*pressed as a percentage. !fficiency 8 (output9input) * &77.

"ffecti$eness
A measure of the e*tent to which a specific intervention, procedure, regimen, or service, when deployed in the field in routine circumstances, does what it is intended to do for a specified population. In the health field, it is a measure of output from those health services that contribute towards reducing the dimension of a problem or improving an unsatisfactory situation. A measure of the e*tent to which a specific intervention, procedure, or service, when deployed in the field in routine circumstances, does what it is intended to do for a specified population. In the health field, it is a measure of output from those health services that contribute towards reducing the dimension of a problem or improving an unsatisfactory situation& The e*tent to which intervention results in favorable outcomes under everyday conditions. $ontrasted with efficacy, which refers to change under tightly controlled conditions. :efers to the conclusion of a goal achievement evaluation. Management see"s 2"fficiency4 and 2"ffecti$eness4 !fficiency (means)
Resource 'sage

!ffectiveness (ends)
(oal )ttainment

-ow waste

;igh attainment

Management strives for low resource waste (;igh efficiency) and high goal attainment (;igh effectiveness)
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Producti$ity
The output input ratio within a time period with due consideration for quality.
'roductivity 8 @utput Input The formula indicates that producti$ity can *e increased *y three +ays!

&) =y decreasing inputs but maintaining the same output. ,) =y increasing outputs with the same inputs. .) =y increasing outputs and decreasing inputs to change the ratio favorably. Inputs may include labor, capital and materials. ote( As productivity is achieved by increasing efficiency, these both are closely interrelated, so we have used these words (efficiency and productivity) interchangeably in our report. And we have also used the word /'erformance0 instead of efficiency in our report.

Types of "fficiency
>e cannot encompass all the types of efficiencies because efficiency may be of any "ind) however we have defined some ma+or efficiency types which are related to our topic( Time Efficiency This efficiency is related to time frame, if certain outputs are achieved with minimum time, then we may say it time efficiency. Energy Efficiency If the output is achieved with minimum energy consumed, then we may say this phenomenon as energy efficiency. Financial Efficiency If the output (profits) is gained with minimum resources (labor, cost, and capital) consumed then the thing is financially efficient.

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Mar,et "fficiency If the outputs (revenues) are increasing with minimum involvement of resources, then the thing is "nown as mar"et efficient and the phenomenon is "nown as mar"et efficiency.

Information Technology -IT.

Information Technology means the use of hardware, software, services, and supporting infrastructure to manage and deliver information using voice, data, and video. Information Technology includes all matters concerned with the furtherance of computer science and technology and with the design, development, installation, and implementation of information systems and applications Information technology architecture is an integrated framewor" for acquiring and evolving IT to achieve strategic goals. It has both logical and technical components. -ogical components include mission, functional and information requirements, system configurations, and information flows. Technical components include IT standards and rules that will be used to implement the logical architecture. Any equipment or interconnected system or subsystem of equipment, that is used in the automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information. The term information technology includes computers, ancillary equipment, software, firmware and similar procedures, services (including support services), and related resources It is a term that encompasses all forms of technology used to create, store, e*change, and use information in its various forms (business data, voice conversations, still images, motion pictures, multimedia presentations, and other forms, including those not yet conceived). A convenient term for including both telephony and computer technology in the same word, IT is the technology that is driving what has often been called 5the information revolution.5 IT includes matters concerned with furthering computer science and technology, design, development, installation, and implementation of information systems and applications.
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Information Technology (sometimes called IT) is a term that covers all forms of technology used to create, store, transmit, interpret, and manipulate information in its various formats. Information Technology (sometimes called IT) is a term that covers all forms of technology used to create, store, transmit, interpret, and manipulate information in its various formats.

Information Technology includes!

all computers with a human interface all computer peripherals which will not operate unless connected to a computer or networ" all voice, video and data networ"s and the equipment, staff and purchased services necessary to operate them all salary and benefits for staff whose +ob descriptions specifically includes technology functions, i.e. networ" services, applications development, systems administration all technology services provided by vendors or contractors operating costs associated with providing information technology all costs associated with developing, purchasing, licensing or maintaining software

"/amples of items e/cluded from the definition!

5$losed5 computer systems that monitor or automate mechanical or chemical processes, such as the fire alarm system in the capitol building. Audio visual equipment which can be operated as a standalone piece of equipment, such as televisions, tape recorders, B$:s, video cameras, and overhead pro+ectors. %tand alone video editing equipment is e*cluded. $opy machines and fa* machines. -icenses or subscriptions to electronic information provided to users in lieu of boo"s or maga#ines. %alaries of staff that use technology but are not directly involved in developing, implementing or supporting technology as documented on their 'IC. 3ata entry staffs, staff that digiti#e drawings, staff that do

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des"top publishing are e*cluded. 5'ower users5 who use advanced features of spreadsheets or word processing software are e*cluded. 3ata entry services

Implementation Styles of IT
After the research there have been identified two ma+or styles) $ontinuous Implementation %tyle Eirst Time Implementation %tyle

Continuous implementation Style

The continuous implementation style is predominant in companies whose technological implementation is much slower, as they use them. They use technology not only to survive but also to achieve the higher standards. They want to reach high level of quality in their final products.

First Time Implementation Style

The Eirst time implementation style is predominant in companies where IT implementation has a high pace, not high innovativeness, with a main ob+ective to innovate, improving the productivity, loo"ing out to innovate, and with a rigid process of innovation.

Management Information System

A Management Information %ystem (MI%) can be defined as a set of formal business system designed to provide information for an organi#ation.The "ind of MI% we are concerned with here includes more computers as components. Information serves no purpose until it gets to its users. Timelines are always important to a business and the computer can act quic"ly to produce information. The e*tent of a computeri#ed MI% varies from company to company, but the most effective "inds are those that are integrated. An integrated MI% incorporates all managerial functionsFF'lanning, @rgani#ing, $ontrolling and -eading. An integrated MI% management computer system uses the computer to solve problems for an entire organi#ation, instead of attac"ing piecemeal. The functional aspect of as MI% is e*panding rapidly in many organi#ation.

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"/amples of Management Systems

Decision Support System
A decision support system (3%%) is a computer system that supports managers in non routine decision ma"ing tas"s. The "ey ingredient of 3%% is a modeling process .A Model is a mathematical representation of a real life system. %imulations are very common in organi#ational functions. In fact, using the computer model to reach a decision is "nown as simulation.

"/ecuti$e Support System

An e*ecutive support system (!%%) is a decision support system especially made for senior level e*ecutives. An e*ecutive support system is concerned with how decisions affect an entire organi#ation. An !%% must ta"e into account the following things( The vision or broad view of company goals. %trategic long term planning and ob+ectives. @rgani#ational structure %taffing and labor relations $risis management %trategic control and monitoring of overall operations. !*ecutive support system also requires access to outside information from competitors, federal authorities, trade groups, consultants, and news gathering agencies, among others. %uccessful !%% must be easy to use, fle*ible, and customi#able.

The Role of Information Technology for 0usiness "fficiency Management

Today0s organi#ations are confronted with rapidly changing mar"et conditions, indicated by high churn rates and strong competitors. Hnder these conditions, traditional management approaches that focus on financial figures and on centrali#ed, analytical planning methods are considered to be insufficient for effectively steering the organi#ation in a dynamical environment. :ecent management support approaches li"e intellectual capital or particularly the balanced scorecard aim at providing a broader view of organi#ational performance. They combine both financial and non financial aspects and
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comprise activities not only to monitor but also to plan and influence organi#ational performance. Their success shows the strong demand for this comprehensive efficiency management. !fficiency is defined as valued contribution to reach the goals of an organi#ation. $ontributions can be made by individuals or groups of employees as well as by e*ternal groups. In the past, the measurement of efficiency was usually restricted to a financial perspective, resulting in various limitations li"e e.g. a focus on the internal aspects of the company, a limited transparency of the roots and causes of corporate performance, as well as late availability of efficiency related information. In order to overcome these limitations of efficiency has to be considered as a multidimensional phenomenon. !fficiency management aims at the systematic generation and control of an organi#ation0s !fficiency. Erom a management perspective.

Parts of "fficiency Management System It consists of four main activities( I !fficient planning I Ta"ing action to control !fficiency (management in the narrower sense)
I Measurement of !fficiency I :ewarding of !fficiency !fficiency requirements are derived from the company0s strategy or vision as well as from its sta"eholders, e.g. customers, suppliers or shareholders. ;owever, it is not sufficient to focus only on the management perspective of the efficiency management concept. -i"e other management approaches, efficiency management can only be implemented successfully, if strategic planning is tightly lin"ed to operational e*ecution. Therefore, the integration of strategies, organi#ational structures and business processes by the use of speciali#ed information systems is considered a vital part of efficiency management concept. It has to be ensured that strategy changes trigger modifications on the business process level and the supporting information systems, and that innovations on the I% or the process level initiate the ad+ustment of the company0s strategy. 3ue to different life cycles and varying actor groups, the alignment of strategy, business processes and information systems support often turns out to be difficult and e*pensive. Although this topic is not new at all, its discussion is intensifying again, mainly influenced by recent wor" of IT analysts and consultants who discovered the close relationship between current business requirements and newly developing IT enablers. In order to e*press the novelty of the approach, the new label /business !fficiency management0 (=!M) was coined, sometimes designated as corporate efficiency management.
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=!M is used as an umbrella term for 2methodologies, metrics, processes and systems that monitor and manage the performance of an enterprise4. Integral =!M support is enabled by the convergence of the well adapted, so far isolated support technologies =usiness 'rocess Modeling (='M), =usiness Intelligence (=I) and !nterprise Application Integration (!AI). Eigure given under illustrates this interpretation. The convergence developments that enable ='M are e*plained in the Eollowing subsections.
0usiness "fficiency modeling

Process efficiency management

0usiness Process automation

0usiness efficiency management

Real time analytic

Real time analytic

Real time analytic

Converging technologies for Business Performance Management

Process Performance Management

Appropriate business process specifications have been implemented either by ad+usting e*isting information systems or by adapting standardi#ed business software pac"ages. In order to create, maintain and communicate business process specifications , most

companies deploy specific business process modeling tools. As a consequence, the resulting IT architectures of those companies are optimi#ed for supporting business processes. In order to adequately support management decisions, the operational data from different A:! components
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have to be collected, integrated and prepared for data analysis. Today, this is mainly achieved by using data warehouse systems (including appropriate load tools, database management systems, and tools for metadata management) and business intelligence tools (e.g. reporting tools, managed query environments, online analytical processing tools, and data mining tools). In most cases, the management information systems are not targeted primarily on measuring the performance of business processes but on fulfilling traditional reporting requirements (e.g. financial reporting). >ith process orientation gaining importance, the need for effectively controlling all business processes is increased. :esponding to that need, a convergence of systems for =usiness 'rocess Modeling and =usiness Intelligence can be observed under the label /'rocess !fficiency Management0. =y collecting and reconciling all operational data related to a certain business process in special process data warehouse, these Tools enable the measurement of process performance and the identification of process improvement opportunities.

Real1time )nalytics
In order to increase their competitiveness, companies always strive towards reducing the time needed to react to relevant business events. An ideal state would be reached if reactions could be conducted in real time, i.e. without any latency between recogni#ing a relevant business event and ta"ing an appropriate action. A ma+or enabler for the reduction of latencies can be seen in the concept of real time information integration, for which !nterprise Application Integration (!AI) suites provide a popular IT solution. Acting as communication middleware, an !AI suite integrates heterogeneous applications in or near real time by seamlessly publishing any "ind of data updates to every subscribing (/listening0) application. ;owever, this "ind of integration has been used mainly to interconnect operational systems and involves only little data consolidation. >hen it comes to e*tensive data analysis, =I software will be used to produce the information that is necessary to ma"e a decision and ta"e appropriate action. =y using a data warehouse as data source of the =I solution, it becomes possible to analy#e actual and historical data, which is usually not possible with analysis based on data gathered from an !AI infrastructure only. The main drawbac" of traditional =I solutions is that they do not wor" on real time data as the data warehouse as their primary data provider is only updated periodically. >ith real time decision ma"ing becoming more important to companies, the vendors

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of =I and data warehousing solutions tend to enhance their products by mechanisms for real time data integration and real time analysis. This leads to the convergence of !AI and =I solutions aiming at providing so called /real time analytics0 functionality by two different strategies( Eirstly, data integration platforms are e*tended by a connector that allows the event based population of !AI data into the data warehouse. %econdly, vendors of =I software offer new mechanisms for providing true real time analysis or for doing real time e*ception reporting.

0usiness Process )utomation and )pplication Integration

The I% architecture of an organi#ation usually comprises a large number of heterogeneous applications, each one of which speciali#ed on supporting particular business processes. Three different reasons may account for this 3evelopment( I The available business software pac"ages usually do not support all processes of an organi#ation. As a consequence, organi#ations have to rely on different solutions. In order to get the best support for each type of process, many organi#ations follow a best of breed strategy and implement systems from different speciali#ed software manufacturers. Hsually the development of an organi#ation0s I% architecture is a continuous process, driven by the changes in the business. As soon as an application is not capable deliver adequate of the changing business, it is replaced by a better application. This leads to an evolving I% architecture, that comprises @f both e*isting and newly implemented information systems that have to be integrated. If two organi#ations A and = decide to merge, they have to integrate both their business processes and their supporting information systems in order to reduce costs and improve productivity. @n the I% level this integration effort usually leads to a situation, where some systems of organi#ation A and some of @rgani#ation = is selected for further usage and hence, has to be integrated. As most business processes have to be supported by more than one application, interfaces between applications have to be established in order to support process e*ecution. This has led to the proliferation of
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bilateral interfaces, each one of them contributing to increased comple*ity and maintenance effort. In order to overcome these integration problems, many companies implemented dedicated !AI middleware that provides a common integration infrastructure, allowing any connected system to communicate with any other connected system over +ust one dedicated interface to the integration infrastructure. >hile the term !AI usually refers to integration on the IT level, corresponding integration needs also occur on the I% architecture and especially the business process level. The need for a close alignment of business process integration and integration capabilities on the IT level has lead to a convergence of business process modeling and enterprise application integration software in the shape of /business process automation0. @perational specifications derived from business process modeling can be transformed into more technical wor"flow specifications, which are e*ecutable using an !AI framewor" that is enhanced with a wor"flow engine. Ta"ing this idea a step further, it becomes imaginable that applications provide their functionality through well defined services with standard interfaces to an !AI platform. This would allow for a dynamic integration of application services based on the logic of individual business processes. @n the software mar"et, the depicted convergence trend between process modeling and !AI can be observed in two different flavors( @n the one hand, traditional !AI platform vendors enhance their products by mechanisms for application and process level integration, e.g. wor"flow engines and wor"flow modeling tools. @n the other hand, large vendors of standard business software pac"ages li"e %A' or %iebel have reali#ed the 1rowing importance of integration issues and have started to provide dedicated application integration platforms that allow for the dynamic business process driven integration of well defined application services.

0usiness "fficiency Management "na*lers

=ased on the above analysis of convergence directions on the IT mar"et, three enablers for an integrated =!M conception can be identified( I =usiness 'rocess Automation lin"s process design to application integration services to in order to foster the automation of business process implementation and to allow for the e*ecution of wor"flows that involve multiple heterogeneous applications. I :eal time analytics allow for the reduction of latency times in decision support by combining the integration capabilities of !AI with the analytic capabilities provided by =usiness Intelligence, thereby moving analytics closer to the operative business.

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I 'rocess performance management closes the loop between process design and business intelligence by enabling the comparison of process e*ecution data with data of previously designed to be processes in order to identify potential for process improvement. The IT enablers could provide sufficient support for integrating strategies, organi#ational structures, business processes and information systems in order to adequately support performance management of the organi#ation. =y combining the different I% support facilities for process modeling, application integration and business intelligence, it becomes possible to dynamically reflect changes on the business process level to the I% level and Bice versa. The following section , provides an overview over latest developments in the IT industry that drive the depicted evolution of =!M. %ince IT enablers can only be deployed usefully based on an appropriate conceptual Eoundation, support processes for =!M are proposed in further studies.

IMP)CT OF IT O 0'SI "SS "FFICI" C2 M) )("M" T

In coherence with the structure of the introduction, this section will depict recent concepts and tools in the information systems area that have the potential to enable the dissemination of =!M in organi#ational practice.

0usiness Process )utomation

The growing importance of business processes orientation in organi#ations has fostered the usage of business process modeling suites during the last years. >hile the main reason for starting process modeling usually is documentation J typically in the conte*t of business process reengineering or improvement pro+ects J many organi#ations later recogni#e that process models play an important role in the reali#ation of adequate I% support for business processes. In this regard, a process model can be used as blueprint for the design of a wor"flow that coordinates activities, resources, and data according to the underlying business process. In order to avoid discrepancies between documentation and e*ecution of business processes, a tight integration of 'rocess modeling and wor"flow definition is required in the first place. ;ence, process specifications have to be transferred from process modeling to wor"flow management tools. @pen standardi#ed formats for business 'rocess definitions li"e e.g. the =usiness 'rocess Modeling -anguage (='M-, cf. ='MI ,777) can facilitate this information e*change. The defined wor"flows can be e*ecuted using a wor"flow management system (>EM%), the

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functionality of which is nowadays J due to close relationship between application integration on the technical level and activity coordination on the process level J integrated into many !AI solutions. =y using an !AI solution with a standard interface for process definitions, it becomes technically possible to use a process model not only as a blueprint for wor"flow design but also for building the application integration scenario necessary to e*ecute the wor"flow. This holds true especially for wor"flows representing so called software processes, i.e. processes that can be automated using software applications. =esides the theoretical feasibility of process model driven !AI, the tas" of integrating applications usually involves a great deal of manual configuration or even programming wor". To allow for further automation of the integration tas"s, functionalities of applications have to be provided as services, i.e. self contained software modules, which can be connected more easily through well defined standardi#ed interfaces. This approach is usually denounced as service oriented architecture. %tandards in this area are already available, li"e e.g. the =usiness 'rocess !*ecution -anguage for >eb %ervices. They can serve as a foundation for true process driven application integration. @n the software mar"et, vendors li"e %A', %iebel and %un follow the idea of service oriented integration architecture by introducing application server concepts such as %A' Ketweaver, %iebel Hniversal Application Ketwor" or %un@ne. Erom a business process automation point of view, the integration of process modeling and applications is fostered by approaches li"e A:I% 'rocess to Application, which allows using business process models for the configuration of wor"flow enabled !AI software. The announcement of the strategic cooperation of %A' and I3% %cheer in the area of business process management solutions indicates the convergence of %@A and ='M, for which 1artner coined the term /=usiness 'rocess Eusion0.

Time Frame
:eal time analytics aim at shortening the period of time between the occurrence of a business event that requires an appropriate action by the organi#ation and the time the action is finally carried out. According to ;ac"athorn, the Additional business value of an action decreases, the more time elapses from the occurrence of the event to ta"ing action. The elapsed time is called action time and can be seen as the latency of an action. Action time comprises three components( &. Data latency is the time from the occurrence of the business event until the data is stored and ready for analysis.

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,. The time from the point when data is available for analysis to the time when information is generated out of it is called analysis latency. .. Decision latency is the time it ta"es from the delivery of the information to ta"ing the appropriate action. This type of latency mostly depends on the time the decision ma"ers need to decide and implement their decisions. In order to reduce action time, latency has to be reduced in all of the three components. Data latency is usually mainly influenced by the refresh cycle of the data warehouse system in which the data is stored for analysis purposes. 3ata warehouse systems are widely accepted as a middleware layer between Transactional information systems and decision support systems, thereby decoupling systems focused on efficient handling of business transactions from systems focused on efficient support of business decisions. %uch a middleware layer is necessary because the direct, individual access of decision support systems to data of operational, transaction oriented information systems has proven to be technically or economically infeasible( 3ata quality problems and comple* integration requirements usually ma"e it impossible to supply consistent, integrated data in real time to a large number of decision support systems. !ven if technically feasible, the development and maintenance of m*n interfaces between m decision support systems and n transactional systems cannot be economically useful. As an intermediate integration layer, the data warehouse system is decoupling decision support systems and transactional information systems, thereby reusing integration mechanisms and derived data for various decision support applications and allowing maintenance to be focused on few, well defined adapters. A main drawbac" of the data warehouse concept is the time consuming and resource intensive process of e*tracting data from operational systems, transforming it and loading it into the data warehouse database. 3ue to this fact, the so called !T- processing is often e*ecuted in batch mode at non pea" times (e.g. over night), causing time lags between the recognition of a business event and its delivery for analysis purposes. A widely adopted approach to reduce data latency is the deployment of operational data stores (@3%).In contrast to the data warehouse system that requires e*tensive data cleansing, data consolidation and data quality management, @3% store a limited scope of data with only basic (or even none) consolidation and only basic (or even non) data quality management, thereby allowing real time or near real time updates and faster data distribution. Another way of reducing data latency is to change from a periodic batch oriented to an event driven update of The data warehouse by using !AI technology. =y doing this, data representing a certain business event will be populated into the data warehouse as soon as the

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event is recogni#ed in an operational system. >ith !AI platforms becoming more important to organi#ations, many vendors of !T- software tools react by offering corresponding interfaces that allow the e*traction of data from popular !AI solutions. A third alternative might be seen in the concept of business activity monitoring, which mainly deals with the direct analysis of data collected via an !AI platform, hence avoiding the additional data storage in a data warehouse or @3% .Analysis latency is mainly determined by the time it ta"es to inform the person in charge of data analysis that new data has to be analy#ed, the time needed to choose appropriate analysis models and the time to process the data. -atest approaches that deal with the reduction of analysis latency can be summari#ed by the term business intelligence, denoting different concepts for a goal driven analysis of business data that is provided through a central data pool. A prominent =I approach is the concept of @nline Analytical processing (@-A'), which concentrates on reducing the time needed for analy#ing the data. Time reduction is achieved by providing powerful user interfaces that let the analyst e*plore the data along previously defined analysis dimensions. In contrast to the fi*ed dimensional structures necessary for doing @-A', 3ata Mining as a more fle*ible =I approach allowing the application of different data e*ploration techniques to a large amount of data in order to discover un"nown relationships between variables or single data items. >hile pure data mining is mainly focused on reducing the time for data processing by applying efficient data e*ploration algorithms, data mining software tools li"e %'%% or I=M intelligent miner also facilitate the choice of appropriate data mining techniques. In order to reduce the time for notifying the analyst of business events, the approach of e*ception reporting can be used. It allows the automatic chec" of predefined e*ception conditions by a speciali#ed reporting tool that is able to notify an analyst, if the conditions are evaluated true. To sum it up, =I tools can help to significantly reduce the analysis latency and the limit of this reduction can be seen in parts of the analysis process that require manual intervention. Eurther improvements in this area can be achieved by automating additional analysis activities. An e*ample could be the reuse of data mining techniques that were specifically tailored to the analysis requirements of the organi#ation. To allow for a better tool support, analysis processes have to be documented in a standardi#ed manner, e.g. by using the e*tensible =usiness :eporting -anguage (L=:-) to formulate financial reports or the 'redictive Modeling Mar"up -anguage ('MM-) to document data mining models. The least IT support can be identified in the area of decision latency. In most cases the interpretation of analysis results and the derivation of appropriate

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actions are seen as manual processes that have to be carried out by "nowledge wor"ers and are therefore time consuming. Kewest advances especially in the area of =usiness Activity Monitoring try to improve this situation =y Automating certain decision processes with the help of rule based decision engines. =ased on the real time analysis of data from an !AI platform, the decision engine chec"s for predefined business rules and notifies responsible people or triggers other tools for conducting further actions.

Process "fficiency Management

The main idea of process performance management is to control the e*ecution of business processes by comparing process models (i.e. to be models of business processes) with data collected during process e*ecution (i.e. as is models of business processes) in order to identify potential for improving process e*ecution and to recommend the appropriate modifications to the processes. In order to ma"e this concept wor", two mechanisms are needed( Eirstly, a mechanism for measuring process performance has to be established. Mueng and Mrahn recommend a nine step model for getting from a process model to a process performance management system that automatically collects both financial and non financial performance relevant data from operational information systems, populates them into a dedicated process data warehouse and provides mechanisms for fle*ible analysis of business processes. A very important part of this nine step process is the definition of !fficiency indicators and process goals for each process that is to be analy#ed. %tate of the art business process design (and maybe simulation) tools allow for the integration of performance indicators in process models. The model database should be accessible via an integration platform using a specific adapter That transforms the tool specific process specifications into a standardi#ed format li"e e.g. the =usiness 'rocess Modeling -anguage. %econdly, a mechanism has to be installed that allows for the translation of process analysis results into recommendations for appropriate improvements of the process design. Improvements are implemented by refining the respective process models, which in turn trigger another design automation analysis cycle. The above described concept of process !fficiency management is e*emplary implemented in A:I% 'rocess !fficiency Management by using the modeling suite A:I% toolset and a special purpose process data warehouse.

PROC"SS"S FOR 0'SI "SS "FFICI" C2 M) )("M" T

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The preceding sections dealt with recent developments on the I% sector, which might foster the diffusion of the business efficiency management concept. This section is to e*amine the business requirements that have to be fulfilled to establish an IT enabled =!M (=usiness !fficiency Management) system in organi#ational practice. As framewor" for the analysis we use the business engineering approach, which proposes the following three phases to transform an organi#ation based on certain innovations which have been identified as having enabling potential for new or improved business solutions( (&) (re )formulation of appropriate business strategies (if applicable 9necessary) (,) (re )design of appropriate business processes and appropriate organi#ational structures and finally (.) (re )development or (re )adaptation of information systems according to the business specifications. As ='M is a support concept for e*isting management strategies phase (&) is not applicable in this conte*t. In order to create business requirements as a conceptual foundation for ='M implementation, step (,) is regarded in this section. The presented findings are conceptual rather than empirical. They are generali#ed from wor"shops with several large %wiss and 1erman service companies and respective case studies. These ban"s, insurance companies, telecommunications providers, utility providers and consultancies participate in the competence $entre /=usiness 'erformance Management0.

Process Categories
The design of ='M process specifications is based on the %t. 1allen management model. In this model, three $ategories of processes are differentiated( I 0usiness processes These cover all activities resulting in a result or benefit for e*ternal customers. I Support processes These enable an effective and efficient e*ecution of business processes. %upport processes incorporate operating an adequate infrastructure and offering internal services.

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I Management processes These cover all activities for designing, steering, controlling and enhancing the @rgani#ation (Hlrich &GD6). Management processes apply to business processes as well as to support processes. According to Hlrich (&GD6), management processes can be further categori#ed into processes for normative orientation, strategic development processes and operational management processes. %ince ='M and IT enabling do not focus on normative orientation, the following discussion is limited to strategic development processes and operational management processes.

0PM Processes
Although a large number of approaches e*ist to specify management processes, most of them are based on a cybernetic interpretation of management systems. According to the %t. 1allen management model, a strategic development process cycle and an operational management process cycle are differentiated. These two cycles are interlin"ed by monitoring and communication processes. As a consequence, (a) @perational management can be interpreted as control path of strategic management (b) =usiness9support processes can be interpreted as control path of operational Management. =oth operational and strategic management processes comprise the same activity types, but they differ regarding cycle time, frequency of e*ecution, processed information and responsible organi#ational unit. The activity types of these two cycles were designed assuming homogenous requirements concerning the %upport 'rocesses management.

0PM Support Process Categories Kow we will elaborate the ='M support process categories( o Information logistic processes -ILP. I-' ma"e tas" specific and relevant information from business processes

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(!.g. transactional data), from management processes (e.g. target or strategy information) and from e*ternal sources (e.g. mar"et data) accessible to ='M processes. I-' interlin" ='M process cycles and support mainly the monitoring and communication activities. o Processes for pro*lem sol$ing and decision ma,ing -PDP. '3' help the ='M process actors to find solutions for their planning problems. '3' manage and access e*perience, models and methods, and '3' support the 3esign of models and methods. Their purpose is to ma"e methods and models easily applicable and to improve problem solving competencies of the actors. '3' mainly support the planning and budgeting and The forecasting activities. o Processes for colla*oration and communication support -CCP. $$' control the sequences of activities in the ='M process cycles, e.g. the coordination of dependent planning activities and the assignment of tas"s. In con+unction with I-', they support communicating ='M results between the ='M process cycles and the business9support process layer. >e select I-' as an e*ample to illustrate the tight connection between IT enablers for ='M and an appropriate ='M (support) process concept. I-' comprises all ='M support processes for the acquisition, integration, structuring, filtering, individuali#ation, presentation and distribution of information. Information acquisition is mainly needed in the monitoring phase of ='M to access problem relevant information, regardless of its structure or origin. It also has the character of "nowledge e*plication when acquiring models and methods from a human actor in the planning and budgeting process. Information integration delivers a unified, reconciled and semantically lin"ed view on information by aligning terminology, representation and technical formats. Tightly coupled with information integration is information structuring. This process restructures information for a certain purpose, e.g. by enriching wea"ly structured information li"e documents with metadata or by transforming it to a multidimensional view for analysis. Information filtering fulfils information individuali#ation, which filters and adapts the presentation of information according to the conte*t of an actor in A certain ='M phase. Information presentation adapts the presentation of information, e.g. transforming it into a certain te*tual or graphical representation. Information distribution in cooperation with $$' forwards Information to where it is needed, both within a ='M cycle and either between ='M cycles or between operational management and business9support

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processes.helps to find or focus the relevant information in the amount of the available information. A quite similar purpose

The Impact of Information System on the "fficiency of 0an,s

Einancial Institutions, particularly the ban"s are the largest investors in information systems (I%) and Information technologies (IT) and this trend is still continuing. The growing concern is that I% investments are not yielding the e*pected results. :esearches have been conducted to evaluate the productivity of ban"s in relation with I% investments. >e have found the following reasons which are compelling ban"s to use IT are( @rgani#ations are now more using data rather than +ust collecting the data. Managers should be spending more their time applying their information and bringing to bear their "nowledge and e*perience in solving problems. This can only happen when information is readily accessible as and when they are needed and in a format that is readily applicable to the problem at hand, so that managers can use the information to enhance the quality of decision that they made. There is a growing debate in the business community about the importance of measuring the return on investments in I%. This is a difficult tas" given that the benefits derived from I% intangible and long term in most of the times. After the studies we have found that the research ma"ers have a lac" of rigorous analysis and theoretical framewor" that e*plores the lin" between I% investments and a ban"0s efficiency. And there is a strong need for developing more rigorous cost benefit methodologies.

CO CL'SIO S
After ma"ing several researches we can conclude that several recent developments in the IT mar"et converge into an infrastructure that meets business requirements for an integrated, fle*ible business performance management. In the beginning of the research it is found how the long time technical and conceptual boundaries between standardi#ed business software pac"ages, wor"flow engines, business process modeling tools, business intelligence tools and integration framewor"s begin to be surmounted by means

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of service orientation, integration middleware, standards for process specification and e*ecution, as well as reference models for metrics and standardi#ed process repositories. It is seen that how this trend of convergence can build the foundation for a better alignment of %trategic decision ma"ing and operational business process management in the shape of a new management %upport concept denounced as business performance management. As IT can only be an enabler of a new management concept li"e ='M (=usiness 'rocess Management), a clear understanding of the organi#ational processes driving both e*ecution and IT support for ='M has to be established in the first place. After ='M has been discussed from a management perspective, the second part of our discussion is an aggregate model of IT support processes that $ould build the foundation for the effective implementation of the discussed IT innovations. In most of the studies related to the IT investments and its relationship with productivity and performance, it is found that there is not a great enhancement in the performance although there is a huge investment in the IT. The problem identified is that the measurements were not too accurate and relevant most of the times, and there is a great need of development of cost benefit analysis. The relationship may turn into positive if the implementations are made relevantly and the proper training is provided with the installation of new technologies. Another problem identified is that I%Ns benefits are long term therefore these should not be measured for short time periods. The most big problem found is that most of the benefits gained from I% investments are intangible.

0i*liography
>e have collected the data for our report from the following sources( www.emeraldinsight.com www.managementfirst.com www.findarticles.com www.questia.com Management by ;ein# >eihrich, ;arold Moont# Management =y %tephen '.:obbins and Mary $oulter ;uman :esource Management =y Meith 3avis and >illiam >erther $omputers =y ;.-.$apron
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The articles attached in this report

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