The acronym EPM stands for Enterprise Performance Management.
Enterprise Performance Management software helps you analyze, understand, and report on your business.
EPM refers to the processes designed to help organizations plan, budget, forecast, and report on business performance as well as consolidate and finalize financial results (often referred to as “closing the books”). EPM solutions are primarily used by CFOs and the office of finance, while other functional areas, such as HR, sales, marketing, and IT, use EPM for operational planning, budgeting, and reporting.
While often tied to enterprise resource planning (ERP) systems, EPM software complements ERP by providing management insights in addition to top of operational data. In other words, ERP is about operating the business—the day-to-day transactional activity—and EPM is about managing the business—analyzing, understanding, and reporting on the business.
The EPM cycle
In an environment of constant change, new competitors, and economic uncertainty, EPM offers a tool for organizations to manage their agile businesses. With finance at the helm, EPM business processes (strategic modeling, plan, consolidate and close, report, and analyze performance) can help organizations understand their data and use it to make better business decisions.
The EPM cycle executes strategic planning, budgeting, consolidation, reporting, and analysis processes in a closed loop that enables organizations to understand and stay ahead of changing business dynamics.
The business value of EPM Software—Critical in uncertain times
The key to surviving disruption is flexibility. Whether the disruption comes from outside forces (such as new regulations or global weather events) or market realities (one product skyrockets to success while another flops), organizations that respond quickly are able to stay ahead of the curve. A modern EPM solution enables you to understand how, when, and where to adjust to disruptions.
- Optimize the financial close
- Streamline account reconciliation
- Drive accurate and agile integrated plans
- Manage and drive profitability
- Satisfy all your reporting requirements
- Manage change with enterprise data management