Enterprise Performance Management (EPM) is the next generation Business Intelligence (BI) that helps an organization to manage and evaluate its performance. It helps organizations make decisions that are aligned with the corporate strategy, maximizing efficiency and business processes.
Looking at the above description of an EPM solution, it’s a no-brainer for an organization to implement an EPM solution. It will always make sense for an organization. With that point of view, many organizations will move towards implementing an EPM solution. However, once the implementation of an EPM solution begins, organizations start to ask, “does it make sense for my organization?”
As organizations dig further, they realize for an EPM system to run effectively and efficiently, it also needs to consider people, processes, technology, corporate projects, traditional projects, operational improvements and organization transformation. Companies should also consider the strengths and reliability of their EPM vendor. With so many interdependencies and changes, many organizations find it difficult to implement an EPM solution and the project fails!
This article will help you gauge when an EPM solution makes sense for an organization. Organizations need to consider the following before starting to implement an EPM solution.
Selecting the right vendor to implement enterprise performance management (EPM) software is as important as selecting an appropriate EPM software for the business. There are too many instances where software implementation projects fail not because of product selection but because of vendor selection.
The EPM vendor must have the expertise in developing and supporting the EPM product, as well as a deep understanding about the company’s mission, goals and strategy to develop the new EPM system. Apart from this criteria, the vendor should be able to interact and engage with the company’s internal team for a successful implementation of the project. Additionally, a vendor must be measured on providing a value-added solution, directly improving overall commercial performance, maximizing the value of the project and providing technical and functional insights and competencies.
The following list of questions are useful for the software selection committee to ask when selecting an EPM vendor.
Cloud computing means that instead of all the computer hardware and software you’re using sitting on your desktop, or somewhere inside your company’s network, it’s provided for you as a service by another company and accessed over the Internet, usually in a completely seamless manner. Exactly where the hardware and software are located and how it all works doesn’t matter to you, as long as it is secure and accessible.
Cloud computing enables companies to consume computer resources as a utility, just like electricity, rather than having to build and maintain computing infrastructures in-house.
Enterprise performance management (EPM) is a process and system designed to help organizations link strategy to plans and execution.
All organizations go through a cycle where they are setting goals and budgets, defining plans, closing the books, and reporting the results to stakeholders. Organizations perform a variety of analytics to understand why the results are above or below expectations and model various business scenarios that can impact future performance.