Butler Report on Enterprise Performance Management including industry perspective by Jedox
Over the years many terms have been used that attempt to summarize the need to collect, align, plan, analyse, consolidate, report and distribute corporate data throughout the organization. Some of the better known terms are “MIS”, “EIS”, OLAP, “Business Intelligence”, “Corporate Performance Management”, “Business Performance Management” or “Business Performance Optimisation”. The term “Corporate Performance Management“(CPM) is currently popular and seems to encapsulate the most complete vision. CPM is built on the foundation of Business Intelligence, with a series of key business processes like planning, budgeting and forecasting as the main challenges in successful CPM systems. This area is well understood by people from the finance department, misunderstood and generally disliked by budget managers throughout the company and of little interest to everyone else. However, the team charged with running the ideal solution to support the company in this area needs a solid understanding of what’s involved.
The Jedox vision of the future of CPM is simple fast and user-driven technology instead of the centrally controlled products of the past. The CPM approach a la Jedox can be easily illustrated on the below chart as CPM does not have to be complicated.
Many vendors and key influencers position CPM as an expensive and highly sophisticated solution, but it basically means managing numbers and performing basic arithmetic operations on the numbers. In CPM, the core of the PB&F process is a financial-modeling engine that has an integrated profit-and-loss, balance sheet and cash flow forecasting capability. This is the key feature that distinguishes CPM from other pure analytic applications that also could create budgets, plans and forecasts. CPM applications support the creation of financially focused budgets and plans, and should support the complete budget creation and approval process with appropriate workflow that enables users to define and control the flow of budgets, plans and forecasts for review and approval. These applications should also keep an audit trail of changes to budgets, plans and forecasts.
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