Next Generation Corporate Performance Management
Helping buyers to select a vendor that best addresses your business needs.
Next generation Corporate Performance Management (CPM) enables an organisation to plan, monitor, and execute on its strategy. It is a set of integrated, closed loop management and analytical processes, supported by technology, that address financial as well as operational activities. CPM is an enabler for businesses in defining strategic goals followed by measuring and managing performance against those goals.
Core CPM processes include financial and operational planning, consolidation and reporting, modeling, analysis, and monitoring of key performance indicators (KPIs) linked to organisational strategy.
The next generation of CPM is essentially built company-wide and inclusive of everyone who can contribute or benefit from performance data. The terms that best describe the next generation of solutions are connected, comprehensive, collaborative, and cloud-based.
The potential impact of next generation corporate performance management is that enterprises are strategically aligned with streamlined and collaborative processes that reduce errors and deliver “one version of the truth”. They also execute with a more holistic view of the business, they have finance and operations working together, and a company-wide performance culture that ultimately should lead to an improved bottom line.
To help organisations find solutions that can meet their current needs as well as be ready for tomorrow’s requirements, Business Process Management (BPM) partners have established the Performance Management Next Generation Ready Certification Program. A set of consistent criteria is used to evaluate vendors against their abilities to provide the next generation capabilities outlined below:
The solution needs to demonstrate ability to address needs beyond finance by offering at least two of the following:
- Operational modelling
- Operational analytics
- Advanced analytics
- Data visualisation
- Business intelligence
- Platform with library or marketplace app solution delivery model
Being more comprehensive is really the key factor in the next generation of CPM systems. What makes a CPM system more comprehensive is its ability to access, analyse and act on a broader set of information, specifically operational data. The best way to get employees to join in and use a new system is to build in ease of use, along with capabilities that were not previously available.
As the next generation systems move into new departments and expand the types of user needs they address, vendors must find ways to quickly and easily deliver new targeted solutions. A platform approach with downloadable solutions or apps could accomplish this. Customer preferences translate into a robust, pre-packaged core solution that serves as a foundation for a library of specialised applications.
The expansion of performance management beyond finance and into operational areas, requires more powerful analysis and modeling capabilities. The increased data volumes resulting from company-wide expansion, leads to the need for enhanced data visualisation capabilities to highlight important trends and deviations. As a result, CPM solutions should be integrated with third party BI solutions like Microsoft Power BI.
The vendor needs to provide tight integration with Microsoft Office components and offer pre-built connectors for key financial and operational source systems.
As CPM reaches more users, in more departments, the number of systems it will need to connect with will grow as well. It is important for vendors to offer robust, extract, transform, and load (ETL) utilities that are easy to use. Connectivity with MS Office is equally important. Next generation CPM solutions must have a relatively seamless, robust, connectivity with a wide range of transactional systems as well as Microsoft Office.
The product needs to offer collaboration tools, workflow and be easy to use.
The ability to collaborate is a key requirement for the next generation of CPM systems. With the increased number of users, vendors must provide tools to facilitate collaboration. Collaboration itself can take many forms. It can be as simple as a file shared in a secure location within the system, or as complex as a threaded discussion around a particular performance result. For collaboration to be truly useful, the right people must receive the right information at the right time.
Two other elements that are also key to support collaboration are workflows and ease of use. Built-in workflow functionality contributes to ease of use by pointing people in the right direction, but also manages the steps and related statuses of key processes.
The solution needs to be provided as a cloud solution.
Any authorised user from any location and from almost any device can easily access cloud-based solutions. With cloud-based systems, the vendor handles the burden of monitoring usage and providing the required processing power and storage. This is a seamless process and it allows for the natural growth of the system usage.
Cloud-based solutions enhance ease of use in several ways:
- Reduce reliance on IT for system installation and upgrades
- Finance self-sufficiency when it comes to administration and management of the solution
- Modern, clean and intuitive web interface
- Everyone is on the same version
- Vendors can provide support more efficiently
At Karabina, we provide organisations with next generation corporate performance management solutions that are comprehensive in terms of functionality and benefits, solutions that are able to connect to multiple data sources, integration with Microsoft PowerBI and other applications, powerful in its collaborative functionality and is fully cloud-based.