What is EPM? The Answer to Your Company’s Data Challenges and More

Are your CFOs and department heads – always asking for better ways to understand the company’s data? Do you have piles of data scattered across departments? Are you suffering from siloed data or fragmented systems that limit visibility across the business? Do your teams struggle to find the root of data issues? Is your reporting slow and inefficient? Are your financial decisions based more on gut instinct than data?

If yes, then your business needs Enterprise Performance Management software (EPM) that will not only help you work better— but also help you think better to make informed decisions for your business.

In This Article You’ll Learn:

What is EPM and how it works?

The benefits of using EPM in your business

See how big companies are using EPM today.

Cloud vs On-Premise Solutions: Which is better for your business?

EPM vs ERP: Understand the key differences.

What is Enterprise Performance Management (EPM)?

EPM is a software solution that helps companies manage their business performance by using data to make informed decisions. It helps businesses understand the past, manage the present, and predict the future. EPM makes complex data simple, so your team can plan, budget, and track performance efficiently – all in real-time!

Here’s how EPM works:

↳ Planning: EPM starts with gathering accurate data to help businesses set clear goals and strategies.

↳ Budgeting: It assists in assigning resources effectively, ensuring the right money goes to the right places.

↳ Forecasting: EPM helps companies anticipate market changes and customer behavior, giving them the foresight to adapt quickly.

↳ Performance Analysis: It provides insights into what’s working and what’s not, so companies can make real-time adjustments to stay competitive.

Who Uses EPM?

EPM isn’t just for CFOs. HR, Marketing, Supply Chain, and IT departments use EPM to improve operational planning, budgeting, and forecasting.

Here’s how it helps:

➡️ CFOs use EPM to plan finances and make data-driven decisions.

➡️ HR uses it to manage recruitment and salary budgets.

➡️ Marketing uses it to understand customer data and trends.

➡️ IT and logistics teams use EPM to improve efficiency and cut costs.

For example, Aon, a global firm with 50,000 employees, used Oracle to consolidate its data and improve sales performance. By eliminating data silos and moving to Oracle’s cloud-based analytics platform, Aon boosted its reporting speed by 50-60 times.

This simplified sales processes, cut costs, and allowed sales teams to focus on growing the business. The company now saves 15 hours a week on manual tasks and has better security for confidential data

Top 5 Benefits of EPM

EPM provides several key benefits that help businesses stay competitive in a fast-changing market:

Better Management Efficiency EPM integrates data from all departments, giving a clear picture of company performance. This insight enables businesses to react quickly to market changes. Example: Novotech, a global clinical research organization, uses Oracle EPM to streamline data, improving its decision-making and expanding rapidly.

Improved Strategy Execution With all the data at your fingertips, you can create a unified business strategy that aligns with your company’s goals.

Risk Reduction EPM provides accurate data that reduces the risk of mismanagement and costly errors. Hypothetical business models help companies prepare for potential challenges. Example: Brussels Airlines uses EPM to navigate the volatile airline industry by forecasting market fluctuations and adjusting operations accordingly.

Clear Performance Indicators EPM acts as a detailed report card for your business. It shows which areas are performing well and which need improvement, helping you focus on profit-driving activities. Example: Harrods uses EPM to understand customer behavior, allowing them to tailor marketing efforts and invest in key products.

Competitive Advantage EPM gives businesses a leg up by providing fast, accurate data that supports better decision-making. Example: AirAsia uses Oracle’s EPM to update revenue forecasts in real-time, enabling them to adjust pricing strategies and improve profitability.

Cloud-Based vs. On-Premise EPM Solutions

On-Premise EPM:

This option involves hosting the software at your company’s location. While this gives you full control over your data, it also requires significant IT infrastructure and maintenance costs.

✔️ Advantages: Complete control over data and security software purchase

🟠 Disadvantages: High upfront costs require in-house IT management

Cloud-Based EPM:

Cloud-based solutions are managed by a third party and accessed via the Internet. This option provides more flexibility and quicker setup, but businesses must rely on the provider for security and data management.

✔️ Advantages: Lower IT costs and easier setup agile and flexible

🟠 Disadvantages: Less control over data security long-term subscription costs

ERP vs. EPM: What’s the Difference?

Although ERP and EPM sound similar, they do different things. You should understand both to decide if your company needs EPM software with your ERP system for better long-term success.

→ ERP (Enterprise Resource Planning) is a system used to manage day-to-day operations like sales, finance, and HR. It helps companies use their resources more efficiently but is limited in its scope.

→ EPM focuses on analyzing data to help businesses plan and strategize for the future. While ERP is great for operational tasks, EPM takes that data and helps guide the company toward long-term success.

When should companies implement EPM software?

Example: Companies often implement EPM software after realizing that their ERP system alone isn’t meeting all their needs. For instance, multinational companies might need EPM for complex tasks like financial planning across multiple currencies or conducting in-depth budget analysis.

EPM helps by pulling data from various systems, such as ERP and warehouse management, to provide a more thorough analysis and improve business performance. This allows users to create detailed reports and make better-informed decisions across the organization.

The Future of Enterprise Performance Management

The global EPM market is expected to reach $11.6 billion by 2030, so it’s clear that businesses are seeing value in measuring performance and taking their organization to the next level. Are you ready to join them? because, “You cannot make progress without making decisions.”

Ready to unlock the power of Enterprise Performance Management for your business?

Let Diamond Professional Consultants – help you implement EPM in your business to — 𝗚𝗿𝗼𝘄 𝗕𝗲𝘁𝘁𝗲𝗿. 𝗗𝗲𝘃𝗲𝗹𝗼𝗽 𝗕𝗲𝘁𝘁𝗲𝗿. 𝗗𝗲𝗹𝗶𝘃𝗲𝗿 𝗕𝗲𝘁𝘁𝗲𝗿.

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