Corporate performance management software: A guide

Corporate performance management (CPM) is a methodology that connects the strategies and goals of an organization to its plans and execution. It follows an integrated approach whereby it aligns business planning, budgeting, and forecasting for sales, finance, HR, and marketing.

It is known by different names, such as EPM- (Enterprise Performance Management), BPM (Business Performance Management), and FPM (Financial Performance Management).

So, What Is Corporate Performance Management Software?

CPM software is a set of applications that is designed to help manage and monitor organization performance based on key performance indicators, such as revenue, overhead and operational costs, return on investment (ROI), or other strategic goals.

It enables corporations to devise their strategies through prescribed methodologies, data analysis, and reporting. The system is supported by a suite of analytical programs to carry out its functionalities.

It’s important to note that CPM and business intelligence (BI) are closely related. In other words, CPM leverages the data provided by BI and plans its strategies accordingly.

The metrics and KPIs provided by the BI system are used by the CPM software to link it to the goals of the organizations.

Features of Corporate Performance Management Software

Here are some of the important features of CPM software that will help you better understand the requirement of the same.

1. Budgeting, Planning, and Forecasting

One of the foremost functionalities of a CPM system includes its capabilities to help organizations plan their short-term and long-term strategic goals based on analytics data. The process basically includes financial budgeting, forecasting, scenario modeling, and reporting.

2. Financial Reporting and Compliance

The main aim of CPM is to drive companies towards their success by allowing managers or executives to manage and track the company’s financial health against goals. It helps measure financial success against various metrics. Other than financial statement reporting, it also carries out excel reporting, management reporting, automated board and financial reporting, and XBRL support for regulatory filing.

Besides, an effective CPM system is well-versed with statutory laws to help the company avoid any penalties.

3. Consolidation and Close

Another significant function of a CPM system is that it can gather, combine, and analyze data from multiple platforms. It involves generating local and consolidated reports, managing and supporting multi-currency, carrying out in-depth audit trials, and consolidating financial data.

4. Seamless Integration

CPM is closely related to the BI system. In fact, it is even referred to as the subset of BI. That’s why it’s essential to integrate the CPM platform with your organization BI system.

BI gathers and feeds the data to the CPM system, whereby those data get linked to the financial and strategic goals of the organization. It facilitates planning and assessment of the company’s performance.

However, there are many solutions that offer both CPM and BI in the same platform.

5. Analytics

Analytics tools are there to help you understand your company performance in relation to the metrics set. Different methodologies include KPI settings, color-coded scorecards, cost and profitability evaluation, and benchmarking with outside data.

These tools can carry out a simple as well as complicated analysis.

Also, Read: The Future of Performance Management Besides Appraisals

Benefits of Using CPM Software

A CPM system can drastically increase your team’s productivity and contribute towards lowering the overall operational costs. Here’s how.

1. Improved Workflow

In this era of business intelligence, it has become essential for companies to embrace the automation of various processes.

A CPM software helps streamline and automates business processes that enable the smooth functioning of the organization.

For starters, a CPM system can schedule and automate the process of importing daily operational data from an ERP system every morning. It also allows establishing authority access, meaning every time new adjustments are made to the reports, managers are asked to approve first.

Besides, it helps save time and effort by automating repetitive tasks. It automates the process of distributing reports via emails, sending out alert notifications about approaching deadlines, providing users with predefined templates for data entry, performing calculations for currency conversions, and more.

Thus, improved workflow results in increased productivity at work.

2. Comprehensive Data Analysis

With the growth of the Internet of Things (IoT), the importance of big data is rising. In fact, 2.5 quintillion bytes of data are produced each day.

Comprehensive data analysis provides you with a competitive edge as it gives you detailed insights into your business performance.

It can better demonstrate where your company stands, helps you plan your budget based on your financial data, forecast demands based on market details. This enables you to strategically create your organizational goals and assist in achieving it.

However, it’s surprising to know that even now, only one-third of organizations use data to identify new business opportunities.

A CPM comes well-equipped with analytics tools, which can display your data in an organized manner. Using these tools, you can perform activities like visualize data using charts and graphs, save data view for later analysis, swap rows, and columns, and more, for in-depth analysis.

Top Corporate Performance Management Software to Look Out For

There are hundreds of top corporate performance management software available in the market. We list some of the best CPM systems that you can consider using.

1. Prophix

Prophix is one of the popular CPM systems that aims to redefine the evolution of finance. It includes a robust set of functionalities, namely budgeting and planning, consolidation and close, and more. It automates workflow and allows you to focus on more important tasks to minimize risk and improve profitability.

2. Oracle EPM Cloud

Oracle EPM Cloud is one of the best CPM software that can be used by all sizes — small, midsize, or large. Its primary features include financial planning, strategic modeling, enterprise data management, and more. As per your needs, you can deploy it in a public cloud, private cloud, or even a hybrid cloud.

3. Vena Solutions

Vena Solutions aims to take out the financial complexity from your system and convert it into a simplified one. It offers various powerful functionalities that include regulatory and compliance, accounting, and budgeting, and more. It can be used by medium- to- large-sized enterprises.

4. Quantrix

Quantrix is the world-leading business and financial modeling platform that offers unmatched solutions for budgeting, forecasting, planning, risk modeling, and visual analytics. The system can help you increase efficiency and transform your operations by sharing critical insights into your company’s performance.

5. Hubble

Hubble is another popular CPM software that can be deployed on-premises and is also available as a cloud-based solution. It is an integrated suite of performance management applications that offers a vast range of features, including planning, reporting, and analytics all in real-time.

6. Kepion Planning

Kepion Planning is an integrated solution to business planning, budgeting, and forecasting. It aligns goals from all departments, including HR, operations, sales, marketing, and finance. It consolidates all data into a single platform and analyzes it across the enterprise to help make smart decisions.

7. Anaplan

Anaplan acts as a connected planning platform that aims to accelerate the decision-making process of organizations. It can turn response time into real-time by promoting collaboration and intelligent planning. It integrates and aligns the goals of various departments. Some of its top clients are HP, TATA Steel, SONOS, and more.

8. IBM Planning Analytics

IBM Planning Analytics is a cloud-based solution that acts as an integrated planning platform. Besides promoting collaboration across the organization, it supports planning, budgeting, forecasting, and scorecarding processes. It gives users access to self-service analytics. What’s more, its interface is incredibly easy to use.

9. Jedox

Jedox is a simple yet powerful enterprise performance management software that is suitable for all size and type of organization. It aims to provide a seamless and optimized business workflow through unified planning, analysis, and reporting. Besides, it can be used on any device.

10. Axiom Software

Axiom Software is a sophisticated performance management solution that provides tailored solutions to its clients. It is designed to help financial professionals with long-term planning, fiscal consolidations, capital planning, budgeting, forecasting, reporting, profitability, and cost management.

Conclusion

A business requires more than just planning to achieve its goals.

Thanks to the CPM platform, it enables organizations to achieve results by linking planning with performance management and evaluation. It allows you to connect your plan with objectives, metrics, resources, and goals to help make better management decisions.

That’s why it’s crucial to install the right corporate performance management software into your system and set those decisions into action.