This guide outlines the key factors you should consider when choosing Enterprise Performance Management EPM software for your business.
In this increasingly competitive digital world, businesses need to take a new look at the way they operate. Most business owners know that operational performance directly impacts the company’s financial standing.
Your business needs to align its needs with the latest standards of operational processes. This is where the best enterprise performance management software solutions come in. In this article, we’ll take a closer look at the basics of EPM software and how to choose the right one that fits your business goals and needs.
What is Enterprise Performance Management (EPM software)?
Enterprise performance management is a business practice that allows you to measure and control the performance of your business. In that sense, EPM software is a technological solution that helps make the process easier.
In general, EPM software is used by decision-making executives, particularly your company’s chief financial officer (CFO). EPM covers a wide range of business processes, including budgeting, financial planning, forecasting, KPI linking and measuring, analysis, and reporting. At its core, EPM softwareallows you to set strategic goals, translate these goals into objectives, plan resources and operations, and track performance against these goals.
In short, it allows you to see and manage how your business is performing in relation to your strategies.
How to choose EPM software: what to look at
How you effectively manage your enterprise software will depend on the EPM software you’re using. Thus, it’s important to choose the right one for your business. Below are some tips on how to find the right EPM for your company:
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On-Premises Vs. Cloud-Based
Like any other business software, most EPM software solutions are available in the cloud or as on-premise solutions. This is one of the most important factors you should consider since there’s a big difference between the two. Also, each type of implementation comes with its own pros and cons, and one may be more suitable for your business than the other.
If your business needs more agility, flexibility, faster implementation, and real-time access to reports and data while on the go, a cloud-based EPM software may be a good fit. In addition, if your business is currently facing budget constraints, cloud-based EPMs don’t require substantial upfront capital investment. That said, you won’t be able to get full control of your system and will have to rely on your provider in terms of security.
In contrast, if you have the budget and want full control over your system, security, and data, an on-premise EPM is a more suitable choice. You can choose your own IT team and how you manage and maintain your system. Take note, however, that it’ll require intensive upkeeping and will cost more to operate.
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Look For Robust Modeling Capabilities
A good EPM software should have a built-in scenario modeling functionality that allows you to generate long-range forecast models in this fast-paced business world. This vital feature in an EPM helps you anticipate your business’s needs and changes that may arise while also allowing you to collect and build on precise rolling forecasts.
In addition, an effective EPM software with robust modeling capabilities can also link operational and financial processes with financial forecasts and plans, providing you with valuable insights so you can plan accordingly and create well-informed decisions.
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Think About Integration
An EPM is only as good as the data it has. Thus, the ability to integrate your EPM software with existing business systems can give you access to consolidated data, ultimately making it easier to manage your operational processes.
Can the EPM integrate with your current ERP system as well as traditional office software such as MS Office suite? You also need to consider how easy the integration process is; for instance, is it automated?
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Comprehensive Reporting Is A Must
‘You can’t improve what you don’t measure’ has always been the mantra of marketers. However, it also makes sense in other aspects of running a business, particularly in performance management.
The best EPM software can provide easy access to easy-to-read reports from different departments across the company. An effective EPM software offers team members with centralized data resources, allowing them to easily create interactive reports that can help executives and decision-makers to do a deep analysis of data and make well-informed decisions.
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Check For Ease Of Use
Choosing an easy-to-use enterprise performance management is important to maximize its value. The main issue with most traditional EPM software is they can get complex and tedious. Software with a steep learning curve can burden your users instead of helping them streamline their workflow.
Fortunately, most EPM software providers offer free trials and demos. This way, you can get an overall feel of the software and determine its usability and user-friendliness. Make sure to take the software for a test run with a control group. In addition, check if the provider also offers resources such as FAQs, brochures, or help centers that can ensure user-friendliness. You should also determine if the provider offers training to help with the onboarding process.
In general, if the software brings more confusion to your team members, then you need to look for something else.
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Consider Your Budget
EPM software will cost you money. That said, don’t blow your budget on software you can’t afford. EPM software can range into thousands of dollars, along with other fees and costs for maintenance or licensing.
In general, the more features an EPM has, the more expensive it becomes. So, set a budget while considering the features you need and start comparing different vendor pricing. In this way, you can be more cost-efficient.
Conclusion
Effective enterprise performance management is a key factor to business success. Any company can have a great strategy for growing the business, but EPM software can provide a clear objective, and effective process to give direction and structure to that strategy.
Using the right enterprise performance management system, you can ensure that your business remains competitive in this modern business world, allowing you to monitor business performance, set goals, and ensure it continues to thrive. Consider the ideas mentioned here as you plan and prepare.
