Enterprise Performance Management 

Enterprise Performance Management (EPM) is a process that links a company’s strategy with its planning and day-to-day execution, supported by tools like planning, reporting, and business intelligence software. The modern concept of EPM, which grew in the 1990s, combines historical data, current performance, future projections, and business drivers to improve both financial and operational planning.

Key features of EPM systems include budgeting, forecasting, KPI tracking, reporting, and analysis. These systems usually integrate with ERP software, adding a management layer that helps finance and operations work together through integrated planning. By using EPM effectively, FP&A teams can detect performance gaps early, analyze root causes, and provide faster and more reliable insights for decision-making.

Current EPM trends show’s that:

1. Deployment models are challenging – Moving from legacy systems to new cloud or on-premise EPM platforms can take years, but modern cloud tools (like Anaplan) allow faster implementation.
2. Innovation has different priorities – While EPM solutions are evolving in areas like user-friendly design, social collaboration, advanced analytics, and system integration, businesses often value integration and simplicity first, followed by analytics and collaboration.
3. Flexibility in modeling is crucial – Cloud-based EPM platforms stand out by offering strong modeling capabilities, reduced IT dependency, and better management reporting.

Advantages of EPM Software

• Smarter and faster decision-making: Helps organizations respond quickly to changing business needs with accurate insights.
• Streamlined processes: Automates planning, budgeting, and reporting, reducing manual effort and errors.
• Improved collaboration: Strengthens communication between IT, finance, and other departments for better alignment.
• Forward-looking insights: Uses data and analytics to identify future trends and risks instead of only relying on past performance.
• Supports digital transformation: Helps businesses modernize by integrating cloud and automation tools.
• Bridges data gaps: Provides a single reliable source of information, ensuring consistency across the organization.
• Agility and adaptability: Makes businesses more flexible in handling market changes and uncertainties.

Key Features of EPM Software:

• Unified Dashboards:
  • Combines financial and operational metrics in one place.
  • Saves time by reducing the need to switch between multiple tools or reports.
  • Example: A CFO can review revenue, costs, and sales forecasts in a single view.
• Predictive Analytics:
  • Uses AI and machine learning to study historical data.
  • Improves accuracy of forecasts and identifies risks in advance.
  • Example: Can generate revenue projections adjusted for seasonality or market trends.
• Scenario Modeling:
  • Allows businesses to test “what-if” situations before taking action.
  • Helps in strategic decision-making by comparing multiple outcomes.
  • Example: A company can simulate the financial effect of different pricing strategies for a new product.
• Cloud-Based Accessibility:
  • Enables global and remote teams to work together in real time.
  • Removes the need for heavy IT infrastructure.
  • Example: Teams across continents can update and review budgets simultaneously.

Reference : https://www.workday.com/en-us/topics/fpa/what-is-enterprise-performance-management.html