What is the difference between Business Activity Monitoring and Business Intelligence?

Rony_Sklar - PeerSpot reviewer
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10 Answers

Victoria Mostova - PeerSpot reviewer
Real User
Top 5
Jul 28, 2023

Business Activity Monitoring (BAM) and Business Intelligence (BI) serve distinct but complementary purposes in the business world. While BI focuses on analyzing historical data to gain insights for decision-making, BAM deals with real-time monitoring of business processes and activities to detect and respond to issues immediately. Understanding the differences between the two is crucial for organizations to leverage both effectively for improved operational efficiency. To further explore the concepts of BI and its relevance in modern business environments, I recommend checking out this article on Cloud Business Intelligence (https://www.cleveroad.com/blog/cloud-business-intelligence/). The article provides valuable insights into the benefits of using cloud-based solutions for BI, highlighting real-time data accessibility, cost-effectiveness, and improved collaboration. Since the original post seeks to understand the difference between BI and BAM, this article serves as a relevant resource to enhance the reader's knowledge of the power of cloud technology in the BI domain.

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Jun 29, 2021

In theory, BAM is meant for transactional and operational management in a daily basis. Like instruments that collect temperature and pressure to adjust control valves. BAM manages processes within a smaller scope and usually analyses data from one business area

And BI is meant to manage the company and not only processes with a more holistic view.  You may cross data from different business areas to reach broad KPIs for your company

Both are part of what is called CPM (Corporate Performance Management).  Both therms (BAM and CPM) were created by Gartner Group.

In real life however, there´s not much difference since you could have dashboards that has both aspcts (operational and managerial) depending on the client and his objectives. Tools may also be the same (like Tableau, Power BI, etc....). 

According to design best practices of dashboards, you should have a clear audience in dashboards and not mix operational and managerial views in the same dashboard, but rarely this is observed.   I have seen very detailed dashboards on process management (just as a BAM) being used by top executives in large companies.   I guess it all comes down to culture and habbit hard to change.

Real User
Jun 28, 2021

One of the key difference is that BAM is designed to monitor performance measure in real time to see progression of processes as they happen. BAM does not monitor old statistic or historical data/information, which BI does. The intent is to be proactive in identifying issues and fix them before they become unmanageable. 

Real User
Dec 10, 2020

BAM is more on Performance Management of the system - Transactional, parameterized across the functions of organizations. The monitoring happens at more microscopic metrics suitable for regular, operational processes monitoring, on a near real-time/real-time basis.

BI - As the name suggests, this is more an aggregated view of business functions or a group of functions together. This is derivative of a summarization and aggregation of pool of data (or pool of BA parameters ) over a period to define the meaningful insight for business CXOs and disseminating a better predictability for future. There are various level of BI maturity which start from simple descriptive intelligence to predictive intelligence.

Jun 17, 2020

The difference between BAM and BI mainly recides in the way that the information is use, for example in many cases the information collected for BI is historical to the bussiness and for support to set goals in short, médium and logn term could be use to establish the estrategic decition most convenient. On other hand BAM, mainly use the information on a day to day basis about the results of bussiness processes and to act proactively to reach the operational bussiness goals of the processes with the information that could be part of the dashboard.

Real User
Top 20
Jun 17, 2020

Business Application Monitoring usually involves measurement and monitoring of up time of key systems, whether that be ERP, CRM, HR, etc. System uptime, downtime and performance response time are some of metrics usually associated with BAM. BI analytics are much more granular and business specific such as gross profit, inventory costs, AR days outstanding and are accessed via dashboards and reports.

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Real User
Jun 17, 2020

BAM is a great way to look at daily production of your business in real time, using solutions such as DMI (direct machine interface). BI is taking all of the data that you have accumulated and using that data to lead your business into the future with help of tools such as Microsoft BI, Minitab, Microstrategy and so on.

Jul 7, 2020

BAM offers real-time monitoring versus historical BI information. So in situations where's urgent to decide can work better and to compare the results of those desitions with the BI information.

it_user516945 - PeerSpot reviewer
Real User
Jun 19, 2020

Business Activity Monitoring is the monitoring of the various processes (activities) in the business. It provides an insight into the processes in a business and how they interact with internal and external entities.

Business intelligence is the "Intelligence" derived from the data generated during the business activities/processes and their interaction with the variety of entities.

At the end of the day they both give information only their focus is different.

Jun 18, 2020

Business Activity Monitoring is about tracking the activities happening in a computer system environment. Business Intelligence is about making decisions based on data. BI is about DECISIONS.

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Business intelligence (BI) successfully combines business history and software to interpret data to analyze a business’s footprint and create action plans for success in the future. Business intelligence will look at the effects of various business decisions and summarize those effects in easy-to-understand reports, graphs, charts, and summaries.
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