Epm (Enterprise Performance Management) can be explained as a software system that has been designed to help organizations and companies link their developed strategies with plans and its execution. This may sound very simple however, those who are working or had worked in business enterprise knows very well how challenging this can be when an organization grows. In order to provide support this process, EPM involves several management processes which include:
- Planning, budgeting, modeling and forecasting
- Consolidation of results and book closure on a periodic basis
- Reporting of results to internal and external stakeholders
- Performance evaluation as against the plan
These processes are executed by the organization in the form of a management cycle which can run either annually, quarterly and even more frequent. The purpose of epm (Enterprise Performance Management) is to assure that strategic goals and objectives are clearly conveyed and understood by business leaders and is reflecting within the plans and budgets. Getting every department within the organization to align with organizational goals is a very crucial point to start.
EPM also involves periodic revisiting so as to assure that the business is aligned over time especially when the market has become unpredictable and volatile. This situation is handled by the reporting and reviewing of the results by both the internal and external stakeholders. This can happen monthly, quarterly or annually, however, some businesses do this more frequently. Moreover, the EPM process can also be useful for fast paced industries like transportation and financial services.
What benefits are offered by epm (Enterprise Performance Management)
Every version of Enterprise Performance Management has brought in several benefits to organizations and businesses. The spreadsheet has immensely helped finance and accounting staff to accelerate their process of obtaining, recording and calculating data. After this, email helped in sharing this tabulated data. EPM applications help businesses to increase their efficiency by either augmenting or eliminating the use of spreadsheets along with bringing in a great deal of improvement in the planning and reporting procedure through a centralized database, process control and workflow. In this way, the financial, strategic and organizational goals are aligned, budgeting participants are widened and managers become more informed about business-related affairs.
A cloud-based EPM program develops its benefits over the traditional software. This renders the EPM software to be deployed faster and easier, increases the speed of innovation, reduces the cost of ownership along with supporting enhanced collaboration within the enterprise. All manual tasks are automated, all key finance procedures are accelerated and there exists a better alignment between finance and business operations.
The EPM process typically involves the managing and monitoring of key performance indicators (KPI) which allows managers of different departments to understand the key market as well as business trends on a regular basis. As a result, the manager is able to respond quickly to a problem where the business or a particular business division is not functioning as planned and making adjustments to assure that the business objectives are being met.
epm (Enterprise Performance Management) consolidates data obtained from different sources after which the data is analyzed and the results are put into practice. Through EPM, processes are enhanced through developing better feedback loops. Real-time reviews help managers and leaders to not only identify but, eliminate issues before they grow big.
In order to operate in an efficient manner, generate higher revenues and to strategically be positioned for future, organizations use the Enterprise Performance Management. Rather than being reactive in operations, EPM programs allows companies to becomes proactive and make those business decisions that will improve the business performance rather than curing it.
EPM systems are implemented by companies so as to develop and execute business strategies that are based upon reliable information. The system is used for carrying out day-to-day business operations, long or short term strategic planning along with creating efficiency in business processes. epm (Enterprise Performance Management) basically maximizes corporate performance.