Enterprise Performance Management (EPM) is a new version of an old concept. Companies have always tried to track their performance in order to recognize opportunities and liabilities proactively. However, they were restricted by a lack of information and underpowered analytics tools. That’s all changing with the advent of powerful, data-driven technologies. Now is the perfect time to get serious about EPM.
What Is EPM Reporting?
The term “EPM reporting” is a little misleading because it encompasses budgeting, planning, and modeling in addition to reporting. Furthermore, even though the CFO typically leads an EPM effort, reports incorporate more than just accounting data; marketing, logistics, HR, sales, and most other departments contribute data as well.
In general, the goal of EPM reporting is to quantify performance across all business functions. Doing so depends on collecting as much data as possible within each of those functions before integrating it onto a shared platform. Integration is essential because the point is to understand performance across the entire enterprise. If anything is missing—shipping data, for example—it compromises the whole effort.
Analytics is the other crucial component. EPM reporting is only instructive when companies can transform data into insights. Raw data, especially in high volume, only has actionable value after advanced technologies analyze it to identify trends, anomalies, and indicators.
Whatever insights the data contains are incorporated into an actual EPM report, typically focused on one aspect of performance like accounts receivable or sales and delivery performance. CFOs and other decision-makers utilize these reports to understand how the company is doing and what factors are driving performance (positively or negatively). As a result, every decision about improving operations or revising strategy is informed by in-depth, empirical insights.
Why Does EPM Reporting Matter?
Data is the competitive asset of the future. Companies that leverage data successfully will thrive, and companies that don’t will falter. Said differently, the enterprises that excel at EPM reporting will rise to the top of their industry because they’re able to use data to optimize performance.
EPM reporting may not be a standard business practice yet, but it will be soon. Companies that embrace the concept, implement the technologies, and invest time in the effort put themselves ahead of the pack. One survey showed that only 35 percent of finance teams use advanced analytics for planning, budgeting, or modeling. As this number grows, the early adopters will have already fixed the flaws in their performance and laid the groundwork for sustained growth.
The question facing companies is whether they can catch up later if they dismiss EPM reporting now. In another survey, 70 percent of respondents said their companies were either actively or planning to undergo digital transformation, an initiative closely aligned with EPM reporting. To put it directly, EPM matters because it’s hard to remain relevant without it.
insightsoftware offers a suite of software solutions that make EPM reporting accessible to all. However, you don’t need to take our word that these solutions have a significant impact on performance. Learn from the experience of actual users; read our case studies today!