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Why CPM is not the same as BI

Sometimes Corporate Performance Management (CPM) and Business Intelligence (BI) solutions are considered the same thing, but this misses some crucial differences. Essentially BI focuses on data management and CPM on management by data.

Business Intelligence (BI)

BI is all about data, and large volumes of it
BI tools are good for manipulating data from different perspectives, slicing and dicing data in different combinations and presenting results in (often) data-heavy tabular reports. Whilst the better BI tools will offer traffic-lighting to highlight results, the focus is totally on performance measures and not actions or risks. BI is most suited to data analysts and people looking for detailed performance data for one particular area of operations.

Corporate Performance Management (CPM)

CPM is all about performance information in fullest sense
not just the performance results, but the related commentaries and explanations, the linked action plans and risks, the mapping to specific business objectives. Most important is the CPM premise that there's too much data, and that in fact good Performance Management is all about focus on the 'vital few' rather than getting overloading with lots of irrelevant data. Also fundamental is offering a range of traffic-lighted personalised views of information – Dashboards, Scorecards, Strategy Maps – that give a context and build a full picture of overall corporate performance. CPM is ideally suited to Corporate and Departmental Management teams, and Boards of Directors, who just need to know about the big issues, not everything that's going on.

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