Enterprise Performance Management: Everything You Need to Know
Enterprise Performance Management or EPM, refers to business solutions designed to help organizations manage any given organization’s performance aspect. These management ecosystems account for factors like budget, planning, forecast, and report on the business’s overall performance. Further, an EPM also helps in consolidating and preparing financial results.
Primarily used by the office of finance & other CFOs, enterprise performance management solutions are also applicable over departments like sales, HR, marketing, planning, IT, and several other aspects of running a business.
In a nutshell, EPM incorporates the following elements of the management process in its functioning:
- Planning, budgeting, & forecasting
- Modeling the value creation of a company
- Consolidation of the results
- Analyzing the overall performance
EPM vs ERP: Is it the same?
It has been a prevalent misconception to confuse Enterprise Resource Planning (ERP) systems & EPM software. However, the nature of both methods is different. EPM systems are meant to complement ERP, by adding relevant management insights besides securing operational data. To simplify the term, ERP allows the execution of operations for everyday transactional activity. On the other hand, EPM provides complete business management, enabling simplified understanding, analyzing, and real-time reporting into the business.
Today, EPM softwares are a critical aspect of business management of all shapes & sizes. They serve as a crucial link between operational and financial insights and play a significant role in driving strategies, execution, and plans. Considering the uncertainty around business ecosystems, EPM aids organizations in managing agility in a somewhat effective manner.
Lastly, we can conclude that EPM softwares are much more dynamic and execute operations at multiple levels, to drive improved performance throughout the organization.
Now that we understand what EPM is, let’s look at how different units of an organization utilize the software.
Key Advantages of Using Enterprise Performance Management
Listed below are the key advantages of integrating an EPM system in your organization:
- Automation of reporting, financial planning, and consolidation processes: The software allows businesses to eliminate the scope of error & ensures minimal manual intervention, allowing companies to use their resources more effectively.
- Acts as a catalyst to accelerate cycle times: EPM delivers accurate data figures, creating more time for executing strategic analysis over operations.
- The software helps to unify finance and operations over a single plan. It enables integrated planning for improved cross-departmental collaboration.
How Different Parts of an Organizational Benefit from EPM?
- Sales teams can optimize their sales funnel with EPM:
With the use of EPM, sales teams can now easily derive plans, based on the cheats & figures, generated by the modern sales tools. This way, businesses can quickly restructure and amend changes to their sales funnel, allowing them to modify their existing sales funnel for improved conversions and more effective sales.
Further, the forecasting possibilities over the EPM solution, allow sales experts to determine their targets to monitor & adjust in real-time continuously. This way, your sales team can easily modify the sales funnel in a more controlled manner with a more collaborative and more data-driven approach.
- HR teams can use EPM to manage personnel development precisely:
An HR team’s primary role is to identify the upcoming needs and requirements at their initial stage and adopt them for planning. Now, when your HR team gets on board with an EPM system, defining goals and comparing them with the current & previous data stream becomes more comfortable and more flexible.
This way, organizations can easily stay updated with all the relevant information around the workforce, over a few clicks. In addition, HR teams can also utilize advanced analytics and predict the forecasts for budget planning.
- Marketing teams can monitor campaigns, more effectively:
EPM provides an eagle’s eye view on the overall performance of your marketing activities. This way, the platform creates a healthy ecosystem where businesses can make better decisions and opt for the most relevant marketing decisions.
One of your marketing team’s major advantages is that they don’t have to compile data manually over the business database. EPM solutions aid organizations with consolidated reporting, without having to rely on manual interpretation of data.
- Procurement teams can control the supply network more efficiently:
With EPM integrated into their ecosystem, organizations of every shape & size can now easily manage all the key figures around the quality & capacities of the requested goods. It allows a smooth and effortless overview, optimizing the transparency & cost structures for improved procurement in your organization.
When you have better control over your suppliers’ price inflation, your team can be well-prepared for the situation at hand and save money besides increasing productivity.
The core function of EPM software is to increase the efficiency of operations over different SAP consulting companies, by streamlining the process over a centralized database. With such functionalities in the offering, the EPM cloud suite enables finance leaders to develop a future-ready organization.