Businesses split on using corporate performance management software
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A total of 44% of the survey respondents reported that their organizations had deployed, were implementing or planned to install corporate performance management (CPM) software. But more than half said that their companies had no plans to deploy enterprise performance management software or other CPM tools in the foreseeable future.
And indeed, industry analysts say that adoption of CPM software remains relatively low, despite the technology’s potential financial planning and management benefits. Excel spreadsheets are still the king of forecasting, budgeting and planning at most companies, according to Robert Kugel, research director for financial performance management at Ventana Research. Kugel said that cost considerations and an ingrained spreadsheet culture are standing in the way of wider CPM adoption. However, he noted that relying on Excel and email for budgeting and planning has various downsides. In addition, the available choices in the CPM market are increasing, giving more options to companies looking for the right financial performance management software to meet their business needs.
Corporate performance management software resources:
- The CPM software market is growing, according to Gartner, which split CPM vendors between “integrators” and “innovators” in a recent Magic Quadrant report. The consulting firm said that many CPM tools can do much more than just budgeting and planning – for example, it cited strategy management and profitability modeling and optimization as underutilized capabilities of CPM software.
- One reader asked: “Should we purchase CPM software from our business intelligence (BI) vendor?” Mark Smith, CEO and executive vice president of research at Ventana, gives his answer in our Ask The Expert section.
- Before selecting CPM software, there are plenty of issues to consider, such as going with best-of-breed vendors or relying on a single vendor for all of your CPM needs. Industry analysts weigh in and give tips on evaluating CPM software and CPM vendors.
- On-demand CPM software might be able to help small and medium-sized businesses (SMBs) overcome adoption barriers, but there are still some potential drawbacks to Software as a Service CPM, including performance concerns. Read about SaaS CPM and see how one SMB is using on-demand CPM technology to improve its budgeting process.
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