Enterprise performance management (EPM) may be defined as a method and an application software which has been designed to assist organizations like companies, government entities, instructional establishments, and non-profits. This helps the organizations to link their organizational aims and goals with their plans and execution. Sounds interesting right? The one who has worked with business enterprise must be well acquainted with the challenges and which an organization faces when it starts growing and expanding. To support this, EPM includes the subsequent management processes:
Budgeting, planning, prediction and modeling
Consolidating results and shutting the books on a periodic basis
Reporting results to internal and external stakeholders
Management cycle includes these processes. This cycle is run at least once in a year or in most cases, quarterly or sometimes very often. The target of EPM is to make strategic goals and objectives for the organization which can be clearly communicated and understood by managers. Involving all of the assorted departments of a corporation aligned around the goals and objectives may be a crucial point from the starting.
But effective EPM conjointly needs periodic revisiting to confirm the organization remains aligned over time, particularly because the business world has become a lot of volatile and unpredictable. This is often handled through the periodic coverage and reviewing of results by internal stakeholders (i.e., the management team) and external stakeholders (i.e., board of administrators, investors). This generally happens monthly, quarterly, and annually. Each generation of EPM package has brought new edges to users and organizations. Pre packaged EPM package helps organizations increase potency by eliminating or augmenting spreadsheets, and up coming up with and coverage processes through centralized databases, workflow, and method management. It helps organizations change manual tasks, accelerate key finance processes, and drive higher alignment between Finance and operations.
EPM package enhances ERP and different IT Systems
While EPM package provides a good deal useful to organizations, it can’t do that alone. It depends on knowledge captured and generated in different systems, like GLs, ERP, HCM, CRM, and others. There might be confusion regarding the role of EPM package vs. business intelligence (BI) package. BI may be a set of tools or a platform targeted on info delivery, designed chiefly for IT departments, and deployed to line-of-business users for all-purpose coverage and analysis across the enterprise. EPM package supports a group of processes generally driven by the Finance organization which extend into lines of business. It helps in processes like modeling, planning, consolidating, reporting, and analytics.
I hope this you are now clear with EPM. In summary, EPM may be defined as a method designed to assist organizations linking their methods to plans and execution. EPM package is intended to support the EPM processes like budgeting, planning, prediction, monetary consolidation, reporting, analysis, and modeling. EPM package has evolved over time and is currently moving to the new edges to Finance departments and therefore the broader enterprise – automating and fast management processes and serving to boost alignment across the enterprise and EPM package is complementary to different IT investments, like ERP, CRM, etc.