Data Quality: The First Metric That Matters for Performance Management Success
01/02/2008
By
Jennifer Schmitz, Product Marketing Manager, Cognos
and
Tom Golden, Director Product Marketing Informatica Data Quality Business Unit, Informatica
Untitled Document
Performance management (PM) solutions, combined with the associated
best-practices and business processes, are rapidly becoming recognized as the
best vehicles for the most strategic use of an organization’s information.
In fact, Hackett Group research illustrates that companies with world-class
enterprise performance management generate 2.4 times three-year equity market
returns, including stock price increase and dividends, of typical companies
in their industry.*
Through disciplined PM practices, companies can align their operational and
financial information, internal processes, and strategic goals to build competitive
advantage, increase return on investment, and drive superior business results.
PM technology combines data from a multitude of sources and transforms it into
actionable performance information that provides a single, consistent, accurate
view of corporate processes and performance. This process ensures that reliable
performance information reaches the right people in the right way at the right
time. With PM, business users throughout the enterprise can consistently make
better decisions around three key performance-related questions:
How are we doing? – Organizations can measure and monitor performance
with scorecards and dashboards that track key metrics.
Why? - Reporting and analysis capabilities let organizations uncover
the reasons behind good and bad performance by exploring the data, gaining
context, understanding trends and spotting anomalies.
What should we be doing? – Through plans, budgets, and forecasts,
a business can set and share realistic and reliable views of the future.
As the appetite for consistent, reliable performance information continues
to grow, accompanied by the demands of increasingly stringent compliance legislation,
many organizations are recognizing the indisputable importance of data quality.
If performance management solutions are to be effective, it is imperative they
be built on a foundation of high-quality data that delivers a single version
of operational and financial performance. This is a non-negotiable requirement
and it is the first metric that is fundamental to successful performance management
deployments.
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