Intelligent Business Performance Management - Sense and Respond Value Net Optimization

Today’s business environment is changing at a rapid pace. Enterprises need to transform themselves to adapt with speed and intelligence, using real time information, advanced technology, and intelligent decision making to gain a competitive edge. The Sense-and-Respond paradigm is a new customer-centered management approach that provides real-time responsiveness necessary for organizations to proactively manage and use distributed networks of resources in rapidly changing environments. It uses advanced technologies to support business agility and intelligence to achieve a competitive advantage. In this paper, we describe a Sense and Respond Value Net Optimization framework that continuously recognizes and transforms events of business processes, generates and provides access to current business performance indicators, and immediately triggers appropriate actions across the entire enterprise and beyond. We discuss two pilot engagements where the Sense-and-Respond framework was applied. In a pilot with IBM’s Personal Computing Division, we describe how to use order trends to provide an early warning of constraints and excesses to make demand conditioning more effective. In another pilot with the IBM Microelectronics Division, we built a system that supports event-driven management of inventory and customer order fulfillment.

By: Steve Buckley, Markus Ettl, Grace Lin, Ko-Yang Wang

Published in: RC23286 in 2004


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