Business Activity Monitoring (BAM) is a software that helps in monitoring business activities, since those activities are implemented in computer system applications. Business Activity can be a business process designed by Business Process Management (BPM).
The main goal of business activity is to provide real time information and result of various process and operations. It is also beneficial in presentation of information on dashboards which contain key performance indicators (KPI). Even though BAM systems usually use dashboard to represent data, BAM is distinct from dashboards.
Here is a example of how BAM solution can be used. Say suppose Bank of America borrows money overnight from CitiGroup. The interbank transfer should be communicated through automation each business day in a set of time. Failure of vital communication can cost the bank large sum of charges from CitiGroup.
A BAM solution can be designed here which will be aware of each message and await confirmation. Failure to receive confirmation within a reasonable amount of time will be a trigger for BAM solution to raise an alarm that will set manual intervention to investigate the cause of the delay and to push the problem toward resolution before it becomes costly.