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EPM explained
Enterprise performance management
Connect finance and operations so you can build forecasts and scenarios that update automatically as your bottom line changes.
What is Enterprise Performance Management?
Enterprise Performance Management (EPM) is a solution that sits on top of your ERP systems.
EPM is a set of tools designed to help organizations effectively manage and enhance their business performance. By bringing together data from various sources, including ERP systems, EPM allows companies to plan, budget, forecast, and report with greater accuracy and efficiency. It bridges the gap between strategy and execution, making decision-making smoother and financial processes more streamlined.
Across industries, EPM is widely adopted because it offers the insights needed to monitor performance, manage risks, and keep business goals on track. With EPM, organizations gain a unified view of their financial and operational health, making it an essential part of modern business strategy.
To gain a clear understanding of Enterprise Performance Management (EPM), it’s important to explore several key components.
Below, we outline the essential elements of EPM that will help you grasp its full scope and functionality.
Data Integration
Consolidates information from ERP, CRM, and other business systems.
Ensures accurate, consistent, and timely data across the organization.
Planning & Forecasting
Supports budgeting, forecasting, and scenario modelling.
Aligns financial and operational plans with strategic objectives.
Financial Consolidation & Close
Streamlines the month-end and year-end close process.
Provides accurate, auditable financial statements.
Profitability & Cost Management
Analyses revenue, costs, and margins to optimise profitability.
Supports informed decisions on resource allocation and pricing.
Account Reconciliation & Compliance
Ensures all accounts are accurate and reconciled.
Maintains regulatory compliance and audit readiness.
Reporting & Analytics
Produces dashboards, financial reports, and management insights.
Translates data into actionable intelligence for decision-making.
Enterprise Data Management
Centralises and governs master data for consistency.
Supports accuracy across planning, reporting, and analysis processes.
Strategic Insights
Provides a unified view of financial and operational performance.
Enables organisations to monitor KPIs, track performance, and act on trends.
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Key Components of EPM
To understand how EPM works, it helps to look at its three core components:
1. Inputs
EPM integrates data from multiple sources to provide a complete view of the business:
ERP Systems: Financial and operational data from your core systems.
CRM Systems: Customer and sales data that drive business decisions.
External Data: Market trends, economic indicators, and other external information that impact performance.
All these inputs flow into the EPM system, where they are consolidated and processed.
2. Central Node – EPM Functions
Once data is integrated, EPM performs key functions that help businesses plan and act strategically:
Planning & Budgeting: Align financial and operational goals with business strategy.
Profitability & Cost Management: Analyse costs and margins to maximise efficiency.
Financial Consolidation & Close: Streamline the close process for faster, accurate reporting.
Account Reconciliation & Narrative Reporting: Ensure accuracy and compliance while providing context to financial results.
Enterprise Data Management: Maintain high-quality, consistent data across the organization.
3. Outputs
The insights produced by EPM guide decision-making and improve business outcomes:
Financial Reports: Detailed and accurate insights into performance.
Performance Dashboards: Visual summaries of key metrics and progress.
Strategic Insights: Actionable intelligence to support informed business decisions.
Key Takeaways
Unified Data: EPM consolidates information from ERP, CRM, and external sources for a single, accurate view of your business.
Better Planning & Forecasting: Supports budgeting, scenario analysis, and strategic alignment.
Streamlined Financial Processes: Simplifies consolidation, close, and account reconciliation.
Enhanced Profitability Management: Provides insights into costs, margins, and resource allocation.
Actionable Insights: Delivers dashboards, reports, and analytics to guide smarter decisions.
Improved Compliance & Governance: Ensures accuracy, consistency, and regulatory readiness across the organization.
Supports Growth & Strategy Execution: Connects data to action, helping businesses monitor performance, manage risks, and achieve goals.
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