Corporate Performace Management (CPM) Software Explained
With over 30 types of business software and even more abbreviations, there is only a handful that finance teams need to understand. In this article, we focus on Corporate Performance Management (CPM) and how it has transformed Financial Planning and Analysis (FP&A).
What is Corporate Performance Management (CPM)?
Corporate Performance Management (CPM) is the area of Business Intelligence (BI) involved with monitoring and managing an organisation's performance. CPM is also known as Business Performance Management (BPM) or Enterprise Performance Management (EPM).
Corporate Performance Management (CPM) Software
Frequently CPM software is deployed by finance teams to analyse financial performance. CPM software includes forecasting, budgeting and planning functions, as well reporting and dashboards to display and analyse corporate information according to key performance indicators (KPIs) such as revenue, return on investment (ROI), overhead, and operational costs.
Corporate performance management (CPM) software helps to define and manage the strategies and methodologies and processes that large or complex companies need to monitor the performance of their business activities.
CPM software enables organisations to track key performance indicators (KPIs) relative to corporate business objectives. This type of software can be expanded to sales, HR and business leaders implemented across the corporation and is used by managers and executives responsible for improving the business performance of the company.
CPM systems help consolidate multiple types of business information (financial, operational, sales, etc.) across all the departments of a corporation. For this purpose, CPM systems needs to integrate with software products such as ERP systems, accounting software, CRM software, or supply chain and logistics software.
7 Defined Areas CPM Software Must Cover
To be categorised as Corporate Performance Management (CPM) software, the solution needs to be able to:
• Deliver standard KPIs for different departments
• Align corporate objectives with operational plans and business processes
• Provide strategic planning and management tools
• Forecast changes in operational metrics and suggest corrective actions
• Automate the collection and management of the data needed to monitor performance
• Include workflows to automate tasks and processes for business performance tracking
• Generate and distribute reports and dashboards on key corporate KPIs
Why CPM software has moved to the cloud
Cloud computing has become the preferred deployment approach for most new corporate applications. Various market surveys estimate cloud adoption at roughly 15 - 20% for corporate performance management (CPM) solutions applications.
The market has shifted from mature on-premises offerings to cloud solutions. Finance application leaders are seeking SaaS solutions to reduce application support costs, increase application ﬂexibility and shorten time to value.
Gartner is predicting that by 2020, 80% of large and 25% of midsize organisations will have adopted cloud-based Financial CPM solutions to replace legacy on-premises systems and manual processes.
Finding the Right Corporate Performance Management Software
As an Adaptive Insights Platinum Solution Provider and the largest dedicated partner in Europe you may think that we would have a bias on who we recommend, so don’t take our word for it. More than 3,800 companies in 50-plus countries use Adaptive Insights. Adaptive Insights ranks #1 in customer satisfaction in independent industry surveys from leading market analysts such as Gartner, Forrester, and BPM Partners.
Adaptive Insights Gartner Leaders
In the Gartner 2019 Magic Quadrant for Cloud Financial Planning and Analysis Solutions Adaptive Insights is a leader across the board. Adaptive Insights’ position reﬂects strength in its sales, marketing and product strategy, product and marketing execution, and high customer satisfaction ratings (72% of surveyed customers would recommend it without qualiﬁcation).
Recent Gartner Peer Insights reviews call out Adaptive Insights’ ease of use, spreadsheet-like user interface and visualizations, straightforward administration, APIs, and ability to “lock” versions, ensuring changes to data in future models don’t affect prior versions.
The Adaptive Insights Business Planning Cloud enables teams to collaborate, gain insights, and make smarter decisions faster. With powerful modelling and built-in analytics, Adaptive Insights provides a comprehensive set of cloud-based software solutions for Finance and Sales.
The CPM software empowers business leaders with a process that is collaborative, comprehensive, and continuous—a process we call active planning. When you can collaborate with business users, quickly build comprehensive models and dashboards, and plan and forecast on a continuous, rolling basis, your organisation is set up to drive business success.