Enterprise Performance Management (EPM) for Dummies
Enterprise Performance Management (EPM) is a management approach used by organizations to analyze their business performance and make informed decisions based on data. In this article, we will explore what EPM is, how it works, the industries that most use it, and some use cases.
What is EPM?
EPM is a set of processes and tools that help organizations manage their business performance. It aligns strategies with objectives, plans and budgets, measures and monitors performance, and analyzes and reports results. EPM software typically includes modules for financial planning and analysis, strategic planning, budgeting and forecasting, performance scorecards and dashboards, and financial consolidation and reporting.
How Does EPM Work?
EPM software collects data from various sources, including enterprise resource planning (ERP) systems, customer relationship management (CRM) systems, and other databases. The data is then organized and analyzed to provide insights into the performance of the organization. This information is then used to plan, budget, and forecast future performance. EPM also includes tools for performance monitoring and reporting, which allow organizations to track their progress against their goals and objectives. Performance dashboards and scorecards provide real-time information on key performance indicators (KPIs), enabling organizations to identify areas for improvement and take action to address any issues.
Industries that Most Use EPM
EPM is used across a wide range of industries, including finance, healthcare, manufacturing, retail, and telecommunications. Any organization that needs to manage its business performance can benefit from EPM software. The software is particularly useful for companies with complex financial structures, multiple business units, and global operations.
Use Cases for EPM
Here are some examples of how EPM is used in different industries:
- Finance: EPM software is used to manage financial planning and analysis, budgeting, forecasting, and financial consolidation and reporting.
- Healthcare: EPM software is used to manage clinical and financial performance, including revenue cycle management, cost management, and clinical quality management.
- Manufacturing: EPM software is used to manage production planning and scheduling, inventory management, and supply chain optimization.
- Retail: EPM software is used to manage sales and marketing performance, store operations, and inventory management.
- Telecommunications: EPM software is used to manage network performance, subscriber analytics, and revenue assurance.
Conclusion
EPM is a powerful management approach that helps organizations manage their business performance more effectively. By using EPM software, companies can gain insights into their performance and make informed decisions that drive growth and profitability. EPM is used across a wide range of industries, and the software can be customized to meet the specific needs of each organization. Whether you are in finance, healthcare, manufacturing, retail, or telecommunications, EPM can help you achieve your business goals and objectives.