ENTERPRISE PERFORMANCE MANAGEMENT MIGHT CHANGE FOREVER. ARE YOU PREPARED?
Enterprise Performance Management (EPM) was developed in the mid-90s and is the process of monitoring performance across the enterprise with the goal of improving the overall business outcome. Because EPM integrates and analyses data from many sources, it enables a business to connect its strategy with past, present, and forecast data to provide a comprehensive financial and operational planning process.
The last twenty years have seen technology play a part in helping EPM advance but the cloud has accelerated its prevalence among SMEs. The next generation of EPM is comprehensive, connected, collaborative and cloud-based. It uses state-of-the-art technology, is user-friendly and can support a cross-functional and complex business use case.
Despite these strides in technology, many organisations are still at low levels of EPM maturity. Signs of this include siloed planning approaches with no integration, high reliance on manual spreadsheets for processes, low confidence in the output from plans and forecasts, limited use of plans and forecasts for decision-making and low investment across technology and people for EPM.
The business case for getting EPM is evident as it allows organisations to make faster business decisions which can give them a competitive advantage. Planning and budgeting becomes a continuous process and will enable people in companies to collaborate, gain company-wide insights, and adapt to market forces with agility.
The evolution of EPM has focused on four key areas: user-simplicity, collaboration, advanced analytics, and integration.
- User-simplicity – People are more likely to get on-board with new technology and processes when it aids their work and drives efficiency.
- Collaboration – Planning should always include the right people at the right time to ensure that decisions are timely and well informed.
- Advanced analytics – Decision-makers need insight and flexibility in a planning system to evaluate scenarios and actions rapidly.
- Robust data and metadata integration are vital for modern business.
Enterprise performance management (EPM) Software helps you collect financial information, consolidate, analyse and report financial performance.
EPM encompasses the financial close, consolidation and reporting process and can support practices that align finance with operations for fully integrated business planning. But a comprehensive business planning system goes beyond just finance and provides an aggregate view of the entire enterprisemanagers and other team members working on the consolidation process.
Choosing the right software for Enterprise Performance Management (EPM)
By joining functions together with plans and data, you can boost business and move forward with speed and agility, however, replacing legacy systems and process with an entirely new EPM solution can be a large-scale project. For large organisations, it could mean a one to three-year implementation schedule. Before diving into requirements and design, a thorough project initiation phase will ensure the project’s critical success factors are defined, and a plan for implementation is developed making sure any potential black hole for IT spending along the way is minimised.
EPM is a subset of applications and processes that cross department boundaries and power a new generation of business planning and now easy-to-use planning solutions are available to everybody in an organisation.
It allows for effective planning and analysis that cross traditional department boundaries to manage the full life cycle of business decision-making. Collaboration is vital for better business performance and growth and a good EPM system encompasses features which make that planning easy and enable a holistic view of all company projects.
The next generation EPM platform
About CCH Tagetik CCH Tagetik is a financial and regulatory reporting tool that has been adapted for lease management. Over 200 global organisations already use the CCH Tagetik solution. It empowers decision makers and business users across all departments, helping them work smarter, streamline business collaboration, and make insight-based decisions with confidence.