Enterprise performance management (EPM) is a hot topic in the business world today. Many companies are looking for ways to improve their performance, and EPM systems are seen as a potential solution.
But what is an EPM system, and how can it help your business? Here we will explore those questions and provide some insights into the benefits of using an EPM system.
Gartner defines enterprise performance management as “the process of monitoring and improving business performance across the enterprise.” EPM systems are designed for “aggregating and analyzing data from a variety of sources, including e-commerce systems, front-office, and back-office applications, data warehouses, and external data sources.”
Benefits of EPM System
There are many potential benefits of using an EPM system. Here are some of the most notable:
Improved Management Efficiency
An EPM system can help managers become more efficient in their work. By providing them with tools to track and analyze performance data, they can identify areas where improvements need to be made. This can lead to better decision-making and improved overall efficiency.
Better Strategic Execution
Using EPM, you can understand the relationship between your desired outcomes and what is likely to occur in the business by:
- Documenting assumptions, constraints, and drivers of business models to achieve strategic business goals
- Taking those models and connecting them to your annual operating plans, budgets, and forecasts
- Tracking and alerting exceptional variations from your plans
- Identifying variations and feeding that knowledge back into business models and strategies
Enhanced Business Performance
By enabling timely, relevant information, EPM impacts the resources, the balance sheet, and the overall return on investment. In addition, it will help you achieve enhanced business performance in several ways, including:
- A better understanding of the key drivers of value in the business
- Understanding the impact of operational metrics on financial performance
- Aids in focusing the business on the right priorities
- Makes business models and organizations more agile and adaptive
- Enables faster, more informed decision-making
- Reduces the risk of making decisions based on faulty information
EPM System Examples In Business Sectors
EPM systems are not just for large businesses; they can be used in any organization, regardless of size or industry. Here are some examples of how EPM systems are being used in different business sectors:
EPM is being used to track customer data and analyze customer behavior to improve customer service and shopping experience.
Moreover, in the retail sector, with the EPM system, retailers can better understand their sales data and product demand. Therefore, making better strategic decisions about pricing, promotions, and inventory levels.
In the healthcare sector, EPM systems are being used to track patients’ care data. Health centers use these systems to identify areas where improvements need to be made and improve the quality of their services. They also use EPM to track and manage their financial processes.
Aside from tracking financial data, EPM systems are being used in the banking sector to track customer data. This information is then used to improve customer service and banking solutions.
In the telecom sector, EPM systems are used to track and manage a wide range of data and automate different workflows to increase efficiency.
These are just a few examples of how EPM systems are used in different business sectors. As you can see, these systems can be used in any organization, regardless of size or industry.
Limitations of Using Spreadsheets Over EPM Systems
There are several limitations to using spreadsheets over EPM systems.
Some of these limitations are:
Data Entry Errors
Spreadsheets are prone to data entry errors. This is because they rely on manual data entry, which can lead to inaccuracies in the data.
Inconsistent Data Formats
Spreadsheets often have inconsistent data formats. This can make it challenging to analyze the data.
Limited Data Analysis
Spreadsheets offer limited data analysis capabilities. This is because they are not designed for data analysis.
Difficult to Share
Spreadsheets are difficult to share. This is because they are often stored on individual computers. This can make it difficult for others to access the data.
EPM systems are designed to overcome these limitations and offer a centralized repository for data that makes sharing data more effortless. Moreover, with the EPM’s powerful analysis capabilities, different layers of an organization can leverage data to make data-driven decisions and improve productivity.
If you are looking for an efficient way to manage data, automate budgeting and forecasting, and attain actionable insights, EPM is the right solution for you. However, implementing and managing this solution is the key to its success. Our experts at InnoVyne are here to support you every step of the way.