The role of finance is changing, and the Enterprise Performance Management (EPM) system is at the heart of it. CFOs and CIOs are evaluating their many siloed software systems and are favoring rationalization in order to reduce data inconsistencies and maintenance costs. Not only are high-performing enterprises taking note of this, but key industry leaders such as Forrester Research have been as well.
It's obviously wise to appreciate the components of EPM before this entire system-overhaul passes you by. We’ve composed a list of the three golden needs in an EPM system and have followed up with key Forrester insights in this webinar. The following are three critical components to be included into an effective EPM system.
1. Reporting: Traditional reporting functionality is reflective in nature and provides an understanding of historical performance, identifying where a company has been.
2. Analytics: Companies manage their reporting information now with its conversion of data into trending analytics. A funnel image or a product silhouette (e.g., filled with sales volume activity) offers management opportunities to gauge current results against goals. Comparing analytic images allows the users to “see” possible opportunities or pitfalls in the business.
3. Planning: More predictive behavior becomes apparent by watching trends and anomalies. That means no more surprises in relation to your planning. Newer EPM systems take advantage of custom alert notifications to forewarn of necessary actions. New planning tools enable collaboration with customers, which when coupled with historical indicators, lead to predictive and prescriptive data. And what company doesn’t want to stay ahead of its competition?
Uniting the elements of reporting, analytics and planning into a single integrated solution leads to an EPM process that enables high-performing organizations to seize competitive opportunities that had been hidden or lost. EPM can also help a company steer clear of unprofitable collisions or economic catastrophes.
If you want to learn more about EPM and the trends in finance, request a Hubble demo to learn more about how you can get ahead of upcoming trends.