According to Gartner, "Corporate performance management (CPM) is an umbrella term that describes the methodologies, metrics, processes and systems used to monitor and manage the business performance of an enterprise." Gartner views CPM as an important concept because it represents the strategic deployment of business intelligence (BI).
Gartner believes that the effective deployment of corporate performance management solutions will enable companies to outperform their industry peers. As a result, rapid growth is expected for the CPM application market. The key market drivers for corporate performance management include:
- Tough global economy – sluggish sales and tight margins magnify the urgent need for flawless strategy execution
- Operational myopia – most organizations have largely ignored strategic processes in recent years in favor of operational processes; from a system standpoint, organizations have typically focused on enterprise resource planning (ERP) deployments at the expense of strategic management and planning systems
- Corporate visibility – landmark legislation and shareholder demands have created significant pressure to improve corporate visibility, enforce corporate governance, and ensure regulatory compliance
- Growth pressure – with a tough business climate over the past several years, most companies have largely squeezed the expense side of the business as much as possible; with an improving economy, organizations are now under pressure to drive growth in the business
The key to effective corporate performance management is tying performance metrics to business strategy. As a result, organizations need to combine the capabilities of two critical technologies:
- Strategic Management System - a comprehensive system that manages the key business processes that impact strategy execution, including objective management, initiative management, resource management, risk management, and incentive management
- Performance Metrics - a robust business intelligence platform for automated data exchange, reporting, and analysis
Contact us to find out how corporate performance management can help your company.
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