Most roadmaps look the same, it is only when you start to travel along the paths that you get lost!
What is best? Well, unfortunately that involves a deep understanding of what is the desired outcome
1] Why are there so many variations of Performance Management? Largely this down to separate organisations and thought-leaders adopting their own preferred synonyms, e.g.
BPM: Business Process Management. The systematic and efficient implementation of the company's workflows and processes to achieve an organisational goal.
CPM: Corporate Performance Management. The area of business intelligence (BI) involved with monitoring and managing an organisation's performance, according to (KPIs) key performance indicators such as revenue, return on investment (ROI), overhead, and operational costs.
EPM: Enterprise Performance Management. Designed to support the FP&A and Operational processes, including budgeting, planning, forecasting, financial consolidation, reporting, analysis, and business modelling. EPM software being complementary to other IT investments, such as ERP, CRM, and BI systems.
FPM: Financial Performance Management. Closed-loop financial reporting, involving; budgeting, financial planning, forecasting, financial consolidation, reporting, analysis, and financial modelling, as well as stakeholder, statutory and regulatory reporting.
Virtually all performance management solutions have the same three main activities:
a) The selection of goals
b) Consolidation of measurement information relevant to an organisation’s progress against these goals
c) Interventions made by managers in light of this information with a view to improving future performance against these goals
Typically, activities of performance management solutions run concurrently, with interventions by managers affecting the choice of goals, the measurement information monitored, and the initiatives being undertaken by the organisation.
2] How to choose between so many different Performance Management solution vendors?
How to select the best Performance management system.
For most Financial Professionals this is a really tough choice. Whereas for others it is easy, as they (rightly or wrongly) believe they can only gain Board-level approval to acquire IBM, Oracle, SAP, or their specific ERP vendor preferred solution. With, fast and accurate, User-friendly and consistent results being desired.
Today’s performance management solutions are; modern 64-bit in-memory applications that remain agnostic as regards data sources and include sophisticated ETL (extract, transform, load) tools that collect and manage data within tables and/or data repositories, enabling “drill to detail” and “in-depth analysis”.
Proprietary databases, as are used by many leading software vendors, should not be of any great concern to IT, as today’s applications are ‘open source’ enabling integration with most reputable third-party tools and anyway, even MS SQL is …, proprietary.
3] So is it largely just an individual’s … best guess?
Well, sadly …often yes! It depends upon whom it is leading the performance management initiative.
i) Finance professionals may have prior experience of a system that affects their choice.
ii) IT personnel may initially be concerned regarding any potential integration issues of new platforms within existing architectures, whether or not ‘cloud’ or ‘on-premise’ is chosen.
iii) Frequently, ITT (invitation to tender) documents are issued and used merely to support pre-existing judgements, with obligatory must haves, or good to have, carefully selected.
4] So how do you … Select the Best Performance Management solution?
Simple …, seek advice. Evaluate properly. Understand the benefits and costs, resources and training.
All software vendors tell you that their software is best. But does it meet your needs? and budget? Reseller Partners can deliver added-value services aligning business needs to their vendor software.