Fortunately, digital tools such as Enterprise Performance Management (EPM) softwares are becoming valuable allies for the finance function.
Running a company today has little to do with the way things used to be in the last century. The stakes are crucial. Whereas in the past it was possible to build and deploy long-term strategies without changing course, today’s companies have to constantly reinvent themselves and anticipate the next turns they need to take. The reason is an increasingly fluctuating and uncertain geopolitical, competitive and even regulatory environment.
There is no other alternative: to get in tune or to disappear. To stay competitive and continue to gain market share, companies are obliged to develop their analytical and anticipatory skills and sharpen their agility.
The Finance function has a key role to play in contributing actively and proactively to the development of the company, by giving visibility and height to the management of operational teams and by delivering both a global and detailed business vision in the short and medium term. Only companies with reliable and regular information can take the right decisions and act quickly.
The EPM (Enterprise Performance Management) software or CPM (Corporate Performance Management), enable Finance Departments to benefit from decision support tools and precise steering of the company’s financial performance.
Delivering real-time strategic analyses, facilitating budget preparation, forecasting, consolidation and closing, these solutions make information more reliable, increase team productivity and improve decision-making processes.
Key Market Trends: Enterprise Performance Management and Analytical tools
According to Markess, Enterprise Performance Management is now an essential solution for finance departments to support business growth. EPM is the opportunity to put the CFO at the heart of the company’s strategy and performance.
It is clear as confirmed by the study that the trend is to use EPM solutions in SaaS or Cloud mode. EPM solutions provide CFOs with all the tools they need to control corporate performance and align the entire organization with its strategic challenges.
A study published by MarketsandMarkets estimates that the global EPM market is expected to grow from $7,28 billion in 2018 to $11,72 billion in 2023.
EPM software to the rescue of financial departments
Finance departments are under increasing complexity and significant pressure from business lines and senior management to provide accurate, real-time analysis to support decision-making.
However, many companies are not well-equipped and Excel® is still very often the preferred tool for finance teams, whatever the size of the company.
The time devoted to data collection and development remains far too important for most companies, which undeniably hinders the productivity and agility of the company.
Optimize financial processes and improve company management
An EPM or CPM solution enables precise performance management through budget preparation, forecasting & rolling Forecasting, management reporting, multi-standard statutory consolidation, financial reporting and reconciliation of intra-group operations.
These solutions enable:
- Automate financial planning, reporting and consolidation, eliminating errors and time-consuming manual interventions.
- Accelerate analysis for fast decision-making based on reliable data.
- Better sharing of information among the different departments of the company for a better alignment with the company’s strategy.