What is Corporate Performance Management?

Corporate Performance Management (CPM) has evolved as a means of delivering greater value to all stakeholders in an organisation by integrating business planning and reporting processes into a common process and technology framework. Indeed, in 2001 Gartner Research defined CPM as “an umbrella term for all processes, methodologies, and systems needed to measure and manage the performance of an organisation.”

Effective CPM systems can enhance business efficiency, increase productivity and deliver major improvements to profitability. At Rinedata, our purpose is to design and implement CPM applications that deliver measurable quantitative benefits to our clients.

Historically, companies have managed their planning and reporting via ‘point solutions’ that perform specific functions such as consolidation, budgeting and reporting. However, such piecemeal approaches have inherent weaknesses, since data must be copied from one system to another. This can result in costly data integrity errors and slow cycle times. Moreover, multiple versions of key indicators mean that business discussions often devolve into debates about who has the correct numbers.

Common CPM goals

CPM takes these dislocated, disparate systems and incorporates them all into a streamlined end-to-end planning and reporting process. Irrespective of vendor or product, the goal of CPM solutions is always the same: to facilitate improved decision-making and introduce greater transparency into the daily operations of an organisation. A principal CPM benefit is the consolidation of linkages between strategic initiatives and related activities; in addition, managers across an enterprise can view a consistent stream of performance data at varying degrees of granularity, though it’s worth bearing in mind that the look, feel and ease of use of CPM systems can mask the complexity of the data below.

Evaluating the current market

The current CPM market comprises of a selection of independent solution vendors such as Tagetik together with the major suppliers such as SAP and Oracle, who have over a period of time acquired a number of solutions to consolidate and strengthen their product offerings, knowledge and expertise.