Do you have any idea about Enterprise Performance Management or EPM? Well, if we define it in simplified terms, EPM is the process of monitoring your enterprise performance with the aim of achieving better results. And with an SAP offering EPM solutions, your business organization can gain more agility to streamline financial and operational performance.
EPM is a system that integrates and analyzes your data from multiple sources. The sources may include data warehouses, external data sources, front and back-office applications, business intelligence, and e-commerce platforms. Enterprise Performance Management matches the allocated resource with your process of execution to achieve the desired outcome. However, if you have a complicated business structure, you will require a system that measures your success and what steps need to be taken to accomplish the goals.
We are aware that SAP is a front-end global leader in enterprise resource planning (ERP). However, it has now become a leading Enterprise Performance Management (EPM) solution and provider. It offers a single consistent view of information that allows you to prepare your budget estimates and forecasting, plan for an effective and result-oriented strategy, develop your intuitive profitability models, and bring more accuracy in generating reports.
SAP Enterprise Performance Management Solutions also provides extensive support to wide-ranging applications such as SAP Disclosure Management, Planning, Consolidation, SAP Financial Consideration, SAP Financial Information Management, and many more.
Before we can proceed further, let’s develop a brief understanding of the major SAP EPM functionalities. It includes-
- Business Planning and Consolidation
- Strategy Management
- Spend Performance Management
- Disclosure Management
- Financial Consolidation
- Profitability and Cost Management
- Intercompany Relationship
- Supply Chain Performance Management and many others.
SAP Business Planning and Consolidation (BPC)
SAP introduced the Business Planning and Consolidation tool to streamline all operations and financial activities of an organization. You can even use BPC to automate and provide accurate business predictions, help in planning and consolidating your tasks.
SAP BPC also offers support to two types of the migration process. They are-
- SAP NetWeaver
- Microsoft Excel
The Microsoft version of the SAP BPC allows you to maintain your application, import data, perform modeling, create scripts and more. It also offers you an additional facility for Enterprise Power Management (EPM) tool that helps in saving your IT bills.
On the other hand, SAP BPC NetWeaver is based on the NetWeaver functionality platform. It is developed on NetWeaver HTML5 with support for different user environment capabilities. In addition to that, you also get access to prebuilt components that help in reusing various applications.
SAP BPC Benefits
- SAP BPC enables you to make fast and efficient business decisions with the help of What-If analysis.
- It supports data collaboration and enhances accuracy in business planning.
- Align your plans with strategic goals to decrease the cycle time.
SAP EPM Strategy Management
It is important for all business enterprises to align the different resources to execute the strategies swiftly, understand the risks, and drive profitability.
SAP Strategy Management helps the higher management to strive for efficient performance in collaboration with accountability and risk management. It helps you to underline the performance management with a clear-cut result-oriented approach, which can be executed both horizontally and vertically.
SAP Disclosure Management
SAP Disclosure Management is a useful application tool, which is available within the Enterprise Performance Management suite. It plays an important role in simplifying the reporting process, especially if multiple users are involved in the process. The SAP Disclosure Management tool proves to be more than a handy asset while presenting annual reports and accounts.
SAP Disclosure Management is a software that offers flexibility and collaboration of disclosures amongst teams and data resources to accomplish financial close and compliance. It helps in managing production, filling and publishing financial disclosures. You can publish the reports in any format including XBRL.
It automates the organizational workflow allowing you to share information with ease and decrease the risk element.
Spend Performance Management
SAP Spend Performance Management, or SSPM, is basically an analytical and strategic reporting tool that helps in gathering spend data from various sources across an organization into a single application. You get access to multiple reportable metrics to generate an invoice and purchase orders with various other tasks.
It provides pre-built spend analytics solutions and metrics, which are based on the SAP Business Warehouse model. It collects and integrates the spend information from both SAP and non-SAP sources, including other SAP solutions.
You can access the application through a web-based interface, providing pre-defined reports
SAP Extended Enterprise Content Management
SAP Enterprise Content Management Solutions is a potent tool that accelerates the process of digital transformation by providing a comprehensive view of enterprise information including unstructured content. With SAP ECM you can –
- Reduce and mitigate the regulatory compliance risk through the implementation of DoD 5015.2 certified records to manage all unstructured content.
- It provides a 360-degree view with simplified access to relevant information across all departments and business locations.
- SAP ECM is effective in improving your business efficiency by streamlining all the IT-related tasks and reducing the application costs as well as optimizing resource consumption.
SAP Profitability and Cost Management
Imagine a scenario where you get access to financial reports and their impact even before you take action. And this is where the SAP Profitability and Cost Management tool comes into play. You can view all this information through an app and so an enterprise mobile application development is important.
Eliminate and resolve all your performance-based issues related to products, services, and customers. You get an in-depth insight into your costs and make profitable decisions by identifying your core target audience and products. Analyze profit across multiple dimensions by running a what-if profitability scenario. Lower your IT expenditure and align the best resources with your business process.
SAP Financial Consolidation
For those professionals, who have been searching for an advanced platform to deliver fast and accurate financial statements, SAP has introduced the Financial Consolidation tool. It is one of the most effective time-saving techniques that allow you to focus on other important strategies.
The tool helps to seamlessly navigate across currencies, mergers, and acquisitions with advanced accounting software like IFRS and local GAAP.
On An Ending Note
SAP Enterprise Performance Management offers various other functionalities that help businesses to link their strategies with different software tools to get optimum results. It automates budgeting, planning, forecasting, and consolidating performance to accomplish strategic goals and objectives.