Negosentro.com | What you need to know about the Enterprise Performance Management (EPM) System | Businesses need to improve operational performance by first optimizing their financial performance. There is a major link between the data generated from sales and services and the workflow to the machinery and production teams. To consolidate this data and represent it in a single report, businesses need to install an Enterprise Performance Management (EPM) system.
What is an Enterprise Performance Management (EPM) System?
Enterprise Performance Management (EPM) systems help users combine their business plans to their business strategies for processing through financial management, business intelligence, and forecasting.
Enterprise Performance Management software is essential to combine business intelligence (BI) with financial management and forecasting so that the management can organize the business revenue with solid data. An EPM is often confused with business intelligence; there is a significant difference between the two.
EPM is more concentrated on financial planning and forecasting and also performs other functions, such as analytics, reporting, and forecasting. However, the EPM’s decision services and guidance is different from BI.
EPM systems provide a high level of transparency and goal orientation between employees and managers so that they are always on the same page. It is focused on developing the potential of the employees, which is done through targeted motivation and eventual removal of obstacles in performance.
What does an Enterprise Performance Management (EPM) system do?
EPM normally helps with enterprise planning using data feedback, improving the main financial performance and efficiency of any business enterprise. The EPM monitors and reports on every system, activity, process, and report within an organization. With the help of the immense data, an EPM helps plan future decisions more effectively.
Although MS Excel is still preferred by many business organizations to collect and validate their business data, it is extremely time-consuming and prone to errors. Using MX Excel also tends to take the business owners’ focus away from their core operations, making the business suffer in turn. With an EPM, business owners can concentrate on value-adding activities, such as regular forecasts, potential business scenarios, and create lasting partnerships.
An EPM is essential for business enterprises to take the next big business decision. It uses actual analyses to predict business trends and forecast business capabilities.
Although it was originally designed for use by finance departments, thanks to its additional versatility, today, EPM systems are used across every business department in an enterprise.
What are the applications of the Enterprise Performance Management (EPM) System?
Advanced EPM systems support functions of all departments within a business organization. It is also an excellent tool to add a competitive edge to business intelligence (BI).
EPM systems are largely used for planning, budgeting, and forecasting business capabilities with user-friendly dashboards that display major organizational data clearly.
What are the functions of an Enterprise Performance Management (EPM) System?
Mainly, an EMP system helps business organizations to increase their efficiency. It enhances the business’s efficiency by removing or extending spreadsheets. It helps improve the planning and reporting process with a centralized database, workflow, and process control.
This way, accountability within an organization is increased. It is achieved by aligning the strategic, financial, and operational goals of the business. In addition, an EPM works to expand budgeting participants and provides stakeholders with the most updated data in a simple and easy-to-read manner.
Using an EPM system, the sales team, HR department, and the procurement teams can improve their functionality and operations within a business organization through effective and efficient use of accumulated data and the reports derived from it.
Have you tried integrating an EPM system in your organization yet?