Why Flexibility Matters in Enterprise Performance Management
For decades businesses have invested in a variety of services and products aimed at improving decision making, profitability, and overall performance. However, the problem with many business optimization initiatives is they lean to be focused on specific outcomes that often don’t translate to broader, enterprise-wide improvements in cost reduction or revenue. The objective of performance measurement has changed over the past few decades. Traditional performance measures based on financial or productivity are no longer appropriate in today’s competitive global market.
Enterprise performance management aims at providing actionable decision-making information above any data source. It is a process supported across planning, reporting, and business intelligence software that allows an enterprise to connect its strategy with execution and planning.
Key Components of Enterprise Performance Management (EPM)
Gartner defines EPM as an umbrella term that represents the methodologies, metrics, processes, and systems used to manage and monitor the business performance of an enterprise.
In the present scenario, EPM is critical for managing all types of organizational activities by linking operational and financial metrics to insights. With robust EPM practices, managers can drive better performance across the organization by monitoring operational and financial results against forecasts and defined goals.
Some of the significant components of EPM include planning, forecasting, budgeting and the ability to monitor performance measures (KPIs). EPM also encompasses the financial close, consolidate, and report process. Ultimately, these suites of solutions are to support the business by linking the strategic plan with the annual budget and the periodic forecast using both bottom-up and a top-down methodology.
Why Flexibility matters?
Enterprise Performance Management is the chief enabler in achieving your strategic & commercial goals and objectives. The core perspective of EPM is achieving a lean and more flexible enterprise. It is not enough to implement any performance improvement program. What is needed is an effective and efficient way to achieve continuous improvement through the skillful use of performance measures, measurement systems and software tools.
Presently the most crucial attribute of an enterprise performance management is flexibility, and one must know why flexibility is important.
For the following reasons: –
1. The flexible modeling platform allows businesses to start with a baseline model for budgeting, reporting, and forecasting. And as your business grows to more complexity, you can simplify it by automating the complex processes into a streamlined and intuitive process within the web interfaces.
2. Both small and large enterprises can take advantage of the flexibilities. Small businesses can leverage on the pre-built apps to get started in a flick. However, mid-size to big shot enterprises can use Business Intelligence (BI) modeler tool to get prompt solutions.
3. Moving collaboration within a planning platform allow users to refine their assumptions and act on outputs more quickly.
4. There is a wide array of use cases across the enterprise, with opportunities to connect marketing campaigns, workforce planning, IT costs, sales compensation, project planning, and more.
5. Today’s planning, and forecasting is augmented with real-time insights and predictive analytics. Progressive technology can do more work with its predictive algorithms and simulations, giving teams more time to focus on the add-on work.
6. “Flexible modeling is the King” The Flexibility of EPM acknowledges differentiators and provide competitive advantages, such as the reduction in IT dependence, the robustness and Flexibility of modelling, and management reporting capabilities.
In today’s fast-paced world, organizational leaders need valuable insight and flexibility in their planning platform to evaluate scenarios and best courses of action in a prompt way. The concept of flexibility becomes crucial in response to radical changes taking place in the business. So, this modern enterprise performance platform needs to be cloud-based with advanced yet user-friendly modelling that can support a variety of cross-functional and complex business use cases. To achieve immense success, one needs to adopt the next-gen approach to their enterprise planning.