There are tons of software designed for enterprise performance management, or EPM. This article delves into the four salient features that should be present in any state-of-the-art EPM software.

Businesses have been forced to revamp their mode of operation, in order to stay in competition in the digital age. One way to do so is by adopting enterprise performance management (EPM) software, which effectively monitors and predict business performances and ensures that set goals are achieved as planned. It considers the visibility of operations in a closed loop mode across all facets of the enterprise, supporting financial planning and analysis, strategy formulation, business planning & forecasting, financial management, and supply chain effectiveness. There are hundreds of software that advertises themselves as EPM, from Corporate, BOARD, Adaptive Insights, Longview, Oracle Hyperion, etc. However, one should be aware of the four most salient features that define an EPM software.

Planning, Budgeting, Forecasting, and Reporting

The EPM software should assist in planning and forecasting processes. The software allows for the plans and goals created by upper management to seamlessly infiltrate into the lower management without any loss of information. The system also gathers in the feedback of the employees that can result in modifications of the original plan. The software also generates intermittent report after the plan has been deployed, which measures in the performance of the employees or the practicality of the plan in the first place. The software finally offers forecasting, to estimate sales income, expected expenses, and the profitability of the business and the entire organization.

Interactive Dashboards and Effective Data Visualization

Technological advancement has called for the requirement of several interfaces that works on multiple devices. EPM software should be available on laptops, tablets, and smartphones – syncing up personal data and allowing for easy navigation between different roles carried out by the different users in the system.

Financial Consolidation

The EPM software allows for the easy management of its financial operations, including frequent checks of account books while complying with a set accounting standards. It automates the process in a timely and accurate manner, reflecting positive virtues to its employees and stakeholders. The software also provides insights and explanations on the status of the company’s finances and relevant documents supporting the findings.

Cloud Sharing and Collaboration

In order to secure the sensitive data collected in a quarter or yearly, the EPM software should have in-build cloud servers that store the data and allows it to be shared with certain people. Such collaboration leads to seamless functionality and allows for the integration of vital workflow and process management. Reports obtained from risk analysis can be timely communicated through emails or video conferencing to the concerned parties.

Along with software and services, the enterprise performance management (EPM) market is expected to grow at a mammoth CAGR of 11.7% in the near future. This is attributed to the demand for cloud-based EPM software and the need to improve business performance.

The rise in the need for making business strategy transparent to all employees increased focus on core business & improved scalability, and need to improve business performance drive the growth of the global enterprise performance management market. In addition, A surge in adoption of cloud-based EPM and rise in demand for mobility is expected to provide numerous opportunities for the growth of the market. However, implementations risks and shifting of the workload from on-premise to cloud hamper the market growth.

Based on industry vertical, the BFSI segment led the enterprise performance management market in 2016 and is projected to maintain its dominance in the future. However, the energy & utility segment is expected to witness the highest growth, owing to its increased need transparency of strategies among all the employees for improving productivity.