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Enterprise performance management (EPM) is the area of business intelligence (BI) involved with monitoring and managing anorganization’s performance, according to key performance indicators (KPIs) such as revenue, return on investment (ROI), overhead,and operational costs. For online businesses, EPM includes additional factors such as page views, server load, network traffic andtransactions per second.
Enterprise performance management, offered by IBM Business Analytics and Optimization (BAO), provides the framework by which companies translate strategy into value–optimizing decisions, investments, and actions. An integrated EPM process includes strategic planning and forecasting, balanced scorecards and dashboards, management reporting and key metrics, performance monitoring and analytics and predictive modeling. EPM can help your organization improve manually intensive, time consuming reporting, develop business insight, perform what if/scenario planning, and operationalize company strategy.
Components of EPM include all the practices, technologies, methodologies and metrics used to gather and apply relevantinformation. EPM software includes forecasting, budgeting and planning functions, as well as graphical scorecards and dashboards todisplay and deliver corporate information. AEPM interface usually displays figures for key performance indicators so that employeescan track individual and project performance relative to corporate goals and strategies. Some companies use establishedmanagement methodologies with their EPM systems, such as balanced scorecard or Six Sigma.