An AMEinfo exclusivity

According to Gartner, the goal of enterprise performance management (EPM) is to monitor performance across the enterprise by integrating and analyzing data from many sources, including e-commerce systems, front-office and back-office applications, data warehouses and information sources.

With the ever-changing post-COVID-19 business landscape, Andreas Simon, MEA Sales Director at Jedox, an EPM software used for planning, analysis and reporting in finance and other fields, spoke with AMEinfo, revealing the trends that will shape this landscape in 2022.

We asked:

Q: What are the trends to watch for the enterprise performance management solutions landscape in 2022?

In late 2020, Gartner reported the emergence of Extended Planning and Analysis (xP&A) which rapidly gained momentum through 2021. Best Practices in Financial Planning and Analysis (FP&A) are now extended to the whole company to generate benefits across the entire value chain. . This means that data collection and forecasting are no longer limited to the financial service domain. Rather, it opens up other departments such as sales, marketing, IT, and human resources to more efficient planning and data management. The full potential of xP&A is realized when there is seamless integration between all departments as it enables more efficient collaboration across the business. This unification of data and processes between departments by consolidating them into a single enterprise performance management (EPM) solution.

We are also seeing a fundamental change in the approach to business planning. The pandemic has made the most commonly used budgeting approaches almost entirely obsolete. A single annual budget is no longer enough. Instead, many companies have started adopting rolling forecasts with higher frequency. From quarterly to then transformed into monthly activity, the concept of continuous and unified planning is now tangible and within reach. Considering the volumes of data involved and the precision of the analysis dependent on several, often granular, factors, supporting this business requirement requires technology capable of supporting streamlined and automated forecasting through the use of artificial intelligence (AI) and machine learning (ML). .

Q: What factors will be behind these trends?

Ongoing globalization, and the resulting increased competition, encourages the need to frequently adapt business strategies. Today, even the largest organizations can see their market share eroded by more agile players, able to scale rapidly to suit rapidly changing markets. Leveraging automation enables greater agility. Thus, where planning and forecasting were previously characterized by laborious and error-prone manual processes; recent advancements in automation, AI, and ML are driving what we call the digital business.

Q: How will these trends improve the business operations / daily practices of CFOs?

Currently, finance functions spend a significant portion of their time working on data, reports and analysis. This must change in order to remain competitive in a rapidly changing world. The key to impacting business value creation is being able to gain better information and make better decisions. The CFO can no longer afford to simply be the cost controller. Instead of focusing only on historical data, becoming a strategic business partner is now a critical part of the role of the modern CFO.

A unified EPM solution breaks silos between departments and provides a real-time, holistic view of the digital business. This enables CFOs to adopt best practices that move from FP&A to xP&A, such as rolling forecasting. This supports the transformation of the financial function from a cost center to a profit engine.

Q: Why is it important to adapt to these trends?

The goal of implementing and using EPM must be built around value creation. Modern EPM software supports functionality throughout the organization and offers seamless integration with other key systems such as CRM and Business Intelligence tools. Today, employees are spread over remote sites. A unified solution that extends planning to all business functions collects and analyzes data from this dispersed workforce and provides a comprehensive view of all organizational data.

The ability to identify trends in market dynamics and customer behavior also enables organizations to respond faster and thus become more resilient. In today’s economic environment, resilience and agility are among the most important factors in long-term business success. If you are agile, the size of your organization no longer limits your ability to compete on the global stage.

Q: What other things will govern the EPM landscape in 2022?

The momentum in the EPM market will be driven by the need for organizations to move away from periodic and unified planning and forecasting. Continuous planning provides a real-time view of business performance. Understanding operations and determining factors enables business leaders to more accurately model future results. Artificial intelligence will of course play an increasingly important role in 2022 because it allows this analysis to take place at a very granular level. Using cutting edge solutions to improve business performance is much more accessible than most organizations realize.