CPM is an umbrella word that refers to the methodology, measures, procedures, and systems used to track and manage a company’s business performance.
CPM integrates management approaches with long-standing business demands for executive reporting and budgeting and current business needs for financial planning tools and enterprise-wide, web-based analysis and reporting, all driven by technology and business. CPM also manages the whole life cycle of corporate decision-making by combining business strategy alignment with business planning, forecasting, and modelling capabilities beyond conventional department boundaries. To put it another way, it would include mapping an organised collection of data against preset reports, alerts, dashboards, analytical tools, key performance indicators, etc., to monitor and enhance business processes based on the company’s strategic goals.
CPM establishes a closed-loop process. The process begins with the development of high-level corporate goals and subsequent predefined KPIs, continues with the measurement of actual results against the KPIs and representation of this comparison in a scorecard, reports the results to management via intuitive reporting tools, and returns the results to the business modelling process for corrections in the next planning cycle.
CPM complements business intelligence systems that have typically concentrated on measurement – which are mostly meaningless without the capacity to act on it! CPM uses performance approaches such as the balanced scorecard or activity-based pricing to ensure closed-loop management. CPM offers a renewed emphasis on quantitative management, a “management by numbers” approach that draws on data analysis and performance reporting to provide insight.
So, CPM is an evolving blend of technology and philosophy, built based on technology and applications that many businesses will already be using. The need for these apps originates because they progressively add value to existing business applications, even legacy ones, to the point where businesses may finally realise some long-overdue advantages and feel more comfortable installing complex ERP systems. Querying and reporting tools, planning and budgeting applications, analytic applications, incentive management systems, portals, scorecards, and data warehouse technology, data models, and integration software have all been adopted by numerous businesses. If you try to undertake a technological inventory stocktake, you will see those specific CPM components are already in use.
CPM helps firms enhance their performance by planning, measuring, and changing their business operations. In today’s economy, there is a constant demand to increase performance. It comes from shareholders, directors, executives, and leaders, all looking for more, better, and faster results. Companies want real-time analytical “answers” to plan more precisely and respond faster to changing situations, and they must conduct analytics throughout their enterprises.
The distinction between corporate performance management and business intelligence continues to be a source of misunderstanding. The difference may be summarised: BI is the means to achieve that goal if CPM is the aim. They evaluate performance management, which aids firms in aligning plans by tracking and analysing key performance indicators. CPM is the enterprise’s dashboard; it assists decision-makers by delivering accurate, complete, and timely information about the company. On the other hand, BI transforms data into information, which CPM then uses to make appropriate decisions. BI technology and analytics have enabled CPM applications to advance dramatically in recent years. For a more in-depth discussion of the nuances of CPM and BI, we wrote a blog comparing the two.
In terms of data analysis, data visualisation, reporting, and collaboration, PPM, CPM, and BI systems all have similar features. They pave the way for a highly data-driven, hybrid, collaborative, and automated future. Your organisation needs a platform solution like Execview that integrates all your PPM, CPM, and BI tools into one to stay up with these shifting demands and take advantage of the benefits of these future approaches. To discover more visit our product and solutions pages. To contact one of our experts, click here, or e-mail [email protected].