Compare leading corporate performance management (CPM) tools and software

Global markets and competition are dynamic and complex. The future is uncertain. Satisfying customer needs and maintaining profitability in volatile markets requires quick decisions and decisive action.

To meet these growing demands, companies need flexible decision support. Decision-makers need timely, high-quality information to make informed decisions. Efficient delivery of this information, detailed data analysis, and up-to-date business plans and forecasts are essential. This cannot be achieved without solid support from corporate performance management (CPM) software.

What is corporate performance management and what are CPM tools?

CPM involves the planning, management, control and improvement of corporate performance at strategic, tactical and operational levels. It uses methods, tools and processes. Leading software tools integrate disciplines such as reporting, analysis, dashboarding, planning, group consolidation or strategy management for holistic business management.

The constant pressure to improve efficiency is forcing companies to continually optimize the technology they use and automate processes. To achieve the best possible results, companies must drive the integration and functional software support of their business processes.

What are the typical features of corporate performance management software?

Modern CPM software platforms provide robust support for finance and controlling departments. The following core functions should be available in an easy-to-use, self-service format:

• Business Intelligence (BI): Support for cyclical standard reports, short-term ad-hoc queries and custom dashboards with options for interactive presentation of results
• Analytics: Support for flexible, dynamic data reporting, visual analysis and advanced analytics, including the integration of statistical models and machine learning (ML)
• Planning and budgeting: Support for a variety of planning approaches (top-down/bottom-up, centralized/decentralized), planning horizons (operational, mid-term, strategic) and sub-plans (e.g., financial, sales, production, resources, etc.)
• Simulation and analysis of scenarios, as well as flexible creation of (rolling) forecasts and predictive forecasting models
• Consolidate group results to meet external (legal, commercial) and internal (management views) requirements
• Communication of results (e.g. data storytelling) and process-supported collaboration (e.g. via workflows, collaboration)
• Regulation of data access and usable functions (security and governance)

What is the foundation of modern CPM platforms?

The core foundation of modern CPM software platforms is an integrated, scalable data repository for all types of data (e.g., actual, plan, forecast). This eliminates time-consuming and maintenance-intensive data copy processes and technology disruptions between software systems and departmental data silos. Centrally managed and harmonized structures and transactional data provide a single point of truth for CPM.

A consistent data model and key figure calculations are defined based on integrated data storage. This enables modeling of enterprise-wide and department-specific data views, supplemented by flexible time horizons for short-term operational, mid-term tactical and long-term strategic considerations. This data model can then be automated through data integration processes and continuously populated with data from upstream (operational) systems.

The standard scope of modern CPM software platforms should also include options for connecting other systems as additional data sources or for extending data models. Only then can they provide a reliable single point of truth for corporate governance and performance management.

Who needs CPM software?

The marketplace and competition require organizations to constantly improve their performance and make careful, forward-looking decisions. Finance and controlling departments have a special obligation to provide detailed insight into consistent data at all times, to keep track of the development of key figures and to constantly update plans and forecasts. With detailed data analysis and predictive forecasting, they provide the foundation for informed, transparent decisions. This requires an integrated view of data from all parts of the enterprise.

The support of powerful technology and software tools is essential when it comes to translating data insights into effective action. As a result, targeted investments in corporate performance management are at the top of many organizations’ agendas to achieve goals such as transparent, data-driven decision-making, increased efficiency, and automation.

What is the value of corporate performance management solutions?

There are many reasons why companies choose to implement corporate performance management products. All projects share a common goal: to gain a detailed understanding of the forces that influence markets and businesses, and the ability to make better decisions based on that knowledge.

In general, all CPM, business intelligence and analytics solutions are used to make better decisions based on data. The following benefits and value are most commonly achieved by companies using CPM tools:

• Better integration of business planning with BI/analytics and group consolidation
• Faster and more detailed reporting, analysis or planning
• Better integration of financial and operational planning
• Improved data quality
• Better integration of strategy management and operations
• Increased visibility and better decisions

CPM software must meet a company’s needs in order to generate business benefits and add value to the organization. Therefore, it is important to compare several corporate performance management tools during the selection process.

Why you should compare corporate performance management software

The CPM software market covers a wide range of offerings. Finding the right tool is not easy. In addition to well-known vendors with strong sales and marketing strategies, there are lesser-known, regional vendors that also offer sophisticated and comprehensive solutions.

A key success factor in selecting CPM software is focusing on individual requirements. This starts with a thorough functional, technical and organizational requirements analysis that includes all key future users of the tool. This ensures acceptance of the solution from the outset and includes the business departments as well as IT and management.

Once all requirements have been finalized and weighted, the evaluation of potential corporate performance management solutions can begin. The starting point is a long list of potential solutions. The next step is to reduce this list using individual knock-out criteria. This elimination process produces the shortlist – a compilation of a few suitable tools that meet all the key requirements.

The final step in the software selection process is to compare the shortlisted solutions in a detailed evaluation.

What to consider when comparing corporate performance management tools

This is a critical point to keep in mind when selecting and evaluating CPM software: All vendors have their own strengths and weaknesses. There is no one-size-fits-all solution. For this reason, the software selection process must always be requirements-driven, and solution offerings should be compared in detail to find the right solution for your company’s needs.

Especially in the context of a detailed evaluation, tools in the software selection process should be put through their paces with regard to all requirements, including a cost analysis. This provides investment security and minimizes the risk of making the wrong decision. Ultimately, it is the overall package of functional support and a solid technical foundation at a reasonable price/performance ratio that makes the difference.

Software decisions for corporate performance management tools are made on the basis of a wide range of criteria. In addition to the flexibility of a solution (e.g., usability for a wide range of applications), companies generally pay particular attention to the coverage of their planning, reporting and analysis requirements during the selection process.

While midsize companies place greater emphasis on criteria such as a solution’s price/performance ratio, predefined data connectivity from upstream systems and the availability of support resources, large companies pay more attention to high-performance processing of large volumes of data and handling of large numbers of users.

In general, the performance of solutions and their ease of use are key factors in the subsequent acceptance of software tools and should therefore be given high priority in the selection process.