Though talk of Enterprise Performance Management (EPM) is plentiful, complete understanding of this concept has not yet been accomplished. What’s important to remember is that EPM is not an entirely new technique. EPM, which is typically utilized reciprocally with the term “business performance management” or CPM, is in fact an integration of sorts with numerous existing techniques of business management that many executives are currently knowledgeable about.
EPM is essentially a combination of the concepts of strategy maps, well balanced scorecards, success management, activity-based costing concepts, driver-based budgeting, and a couple of others. When you are a CFO, everyone seeks to you for all the responses. EPM is an approach to obtain deeper, more significant understanding by gathering and aligning all the data from numerous software and applications and combining it for a richer, more detailed view of the status of the enterprise.
EPM is More Than Mere Statistics or BI
Enterprise performance management is a lot more than simply business intelligence or analytical analysis, and gives much deeper understanding into the present status of the organization, in addition to what the future holds.
Previously, CFOs (and other executives at the helm of big corporations) had a relatively small pool of analytical tools. Using spreadsheets and other more or less manual ways, they could derive a bit of business intelligence using data analytics and analytical methods. EPM is a much more robust set of tools and techniques to work with.
EPM includes celebration data from a wide range of disparate sources and integrating the data for a fuller, more comprehensive analysis. The deeper, richer data lends to more robust analysis, including the capability to perform predictive analysis to guide the business into choices that do not just work now, however will certainly also serve their functions well into the future. A good way to take a look at the improvement in EPM and common BI is what sort of questions you can respond to using each method. Using BI, you can address the concern, “What took place?” Using EPM, you can answer the question, “What can occur?”.
Analytics-Based Enterprise Performance Management Includes Internal & External Data
The data that enters into enterprise performance management is not just the internal data that comes from the organization. It also includes as much external data as possible to give a holistic view of the scenario.
Naturally, the data that is lumped into enterprise performance management consists of all the internal data from spreadsheets, CRM software, marketing software, financial software, and so on, but it also includes as much data from external sources as possible. External data can consist of historical data on financial markets, market ratios and benchmarks, customer information, etc
EPM provides you better insight into your organization, a better grasp on the future, and empowers you to improve processes, save money on costs, and develop an enterprise that is genuinely agile, in spite of its size.