Technology component in Brief
Technology acts as an enabler for performance management. Nowadays, the role of technology in an organization’s infrastructure is substantial, and technology can be regarded as a strategic asset1. In particular, the maturity and sophistication of an organisation’s information systems have a positive impact on its efficiency2. The technology component examines in detail 1) the alignment between business and technology, 2) application architecture, and 3) data warehouse architecture. Data warehouse architecture is separate from application architecture as it forms the basis for an effective performance management solution.
From the technology point of view, performance management is one of the few remaining areas which organizations are automating using software applications3. Technology can enable performance management processes to deliver given strategic goals4. However, these processes have to be effective – in the worst-case scenario, organizations are only improving and automating existing processes that are already poor and not performing well5. It is important to note that organizations usually do the right things, but unfortunately they often do them separately and in isolation. For example, companies can create rolling sales forecasts, but they do not necessarily use those results in the budgeting process. This is where the benefits of technology come in – it can work as an enabler to integrate diverse processes and applications together, and to provide data for metrics and the higher level information that decision-makers need.
Key capabilities and management practices
- A common architecture and infrastructure
- Centralized data warehouse(s)
- Organization-wide technology management and architechture
- Flexible and layered architecture
- Close integration to enterprise architecture
- Use of external data sources widely
See also other components
Maturity levels for Technology component
|Level 1||Level 2||Level 3||Level 4||Level 5|
|No common architecture or infrastructure; temporary ad-hoc solutions; primitive technologies; data is reported directly from operational information systems; IT seen as a cost center||Use is focused largely on basic functionalities; data marts; some data warehouse projects; tools in use, but they are in silos; interactive reporting systems; ready software suites; no proper information system for collecting the data||Data warehouses; the importance and number of data marts is decreasing; great number of different technologies; initiatives for organization-wide technology management and architecture targeting to multi-layer platform; implementation can be repeated and moved elsewhere||Centralized organization-wide data warehouses; data warehouses constantly consolidates analytical structures; flexible and layered architecture; solution drives everyday functions in the organization; hybrid technologies; integrations between applications||Service-oriented architecture; full-scale organization-wide analytical architecture; integration into enterprise architecture; data warehouses and analytical functions become part of basic infrastructure; EDW is a strategic resource; external data sources used widely|
- Aho, M. 2011.
- Salleh et al., 2010
- Eckerson, 2011
- Coveney, 2003
- van Decker, 2010