As most of our readers likely already know, Business Intelligence (BI) was developed to help us all make sense of the data we’ve been collecting in our critical business, or ERP, systems.
Our critical business systems are transactional in nature. So they’re good at recording and handling large volumes of information or automating processes. But these systems are poor at leveraging the data and creating actionable information for managers to make solid business decisions.
Business Intelligence made huge strides helping us make sense of our data, resulting in new ways to look at management dashboards and analytics. But while BI is designed for management reporting, analytics and planning, it fails to incorporate business processes or handle transactions. Simply put, it just doesn’t understand those critical business systems, so it’s not real-time. And let's be honest, that is a critical issue in 2015. According to Gartner (Nigel Rayner), on the shortfalls of BI:
“This has led to two outcomes: low penetration of BI use among business executives, and a growing frustration with the analytic capabilities of business applications. Executives have to resort to data extracts and spreadsheet mashups to get much of the information they thought they were going to get from BI and business applications. This is changing, with the growing adoption of analytic applications, in particular PM [Performance Management] applications, which bridge the gap between these worlds and offer the business user the right solution to their needs.”
Financial Performance Management solutions came about as a best-of-both-worlds solution. It provides a single platform for reporting, analytics and planning for everyone in the business in one single, real-time solution that fully understands critical business systems. FPM, as we call it here, is known as PM according to Gartner. As they see it, the struggle is real. Companies need another option other than BI that truly gives them the actionable information businesses need to empower users at all levels– which is a key factor in creating a high performance culture.
All of this combined means companies see further ahead and can better forecast for the future. That’s why we think there is an incredible need for something more than BI. If you’re curious to see an FPM solution in action, explore more on Hubbleology or see a demonstration of Hubble.