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Enterprise performance management (EPM) is the area of business intelligence (BI) involved with monitoring and managing an organization'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 and transactions 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 relevant information. EPM software includes forecasting, budgeting, and planning functions, as well as graphical scorecards and dashboards to display and delivers corporate information. AEPM interface usually displays figures for key performance indicators so that employees can track individual and project performance relative to corporate goals and strategies. Some companies use established management methodologies with their EPM systems, such as balanced scorecard or Six Sigma.