What is Business Activity Monitoring?

 Business activity monitoring (BAM) is a system that allows for “the provision of real-time access to critical performance indicators” concerning several major business processes inside the organization that concerns customers or business partners. (Gartner, 2001). 

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How is Business Activity Monitoring Carried Out? 

As such, BAM is carried out as part of a technological system that accesses relevant information and presents that information in an actionable fashion. 

This requires the presentation of Key Performance Indicators (KPIs) through a business dashboard or interface. 

Basically, it involves using a business management system (or a combination of systems to monitor a chain of activities) to active monitor specific activities (including inputs or outputs) of a business. Doing so, allows the monitor to identify any irregularities or variations from expectations. 

Why is Business Activity Monitoring Useful? 

Becoming aware of such occurrences in real time (or very close there to) allows the manager to take corrective measures. 

This increases the potential for improving efficiency of business processes, monitor shifts of priority and conflicting goals, increase customer satisfaction through improved product and service quality. 

Related Topics

• Business Performance Measurement
• Benchmarking
• Balanced Scorecard
• Economic Value Added
• Activity-Based Management
• Quality Management
• Action Profit Linkage Model
• Business Activity Monitoring
• Gap Analysis
• Strategy Diamond
• BCG Growth-Share Matrix
• GE McKinsey Matrix
• Value Reporting Framework
• Pyrrhic Victory