We’re in an era of reinvention. Advances in data availability and processing, along with fast emerging advanced analytics and AI technologies, are enabling first movers in finance to get ahead. They are harnessing new insights, better navigating risk and making informed decisions faster than competitors. Those who fail to keep up, risk being left behind.
Against this backdrop, having the right technology to facilitate agile, data-driven decision-making is key. More than half (53%) of finance leaders are looking to accelerate digital transformation using advanced analytics, AI, automation and cloud solutions.
Many organisations, often driven by their IT function, and with a bias towards modernising legacy platforms, are overhauling their Enterprise Resource Planning (ERP) and related systems that supply the core data necessary to fuel business insights.
But here’s the catch. Enterprise Resource Planning (ERP) transformations are often once-in-a-decade investments that span multiple years, impacting almost everything from customers to closing the books. These programs often require significant change efforts, with value delivered as a step-change in the later stages of the transformation and frequently falling short of business expectations.
While ERP transformation focuses on delivering operational efficiencies through data integration and workflow automation, Enterprise Performance Management (EPM) adds a strategic layer. It aligns business activities with strategic objectives, integrating planning, budgeting and forecasting processes, and leveraging ERP data to provide deep insights into current and future business performance.
This article explores how an EPM-first approach sets the foundation for a smarter, faster transformation – and positions finance as a true strategic business partner.
Using EPM to define the vision for a strategic finance function
Many companies frequently embark on their digital transformation journey without stepping back to redefine what they’ll need to operate and manage in the future.
Without a clear vision for Enterprise Performance Management – and the agility to seize innovation opportunities as they arise – finance teams risk falling behind. Instead of transforming to meet the evolving needs of the business and preparing for what’s next, they end up constrained by an outdated systems landscape and hindered by obsolete processes.
It’s time to consider a different approach. Finance must reimagine its role as a strategic business partner – responsible for curating data and generating insight that drives long-term value. This shift requires finance to collaborate with cross-functional leaders to answer the following critical questions:
- How and where will decisions be made, and what key performance indicators (KPIs) and insights support these decisions?
- How do we accelerate and connect planning, budgeting, forecasting and reporting processes?
- What data will this require, how frequently and from where?
- What are the implications for the enterprise operating model i.e. Structure, Skills, Governance?
These conversations naturally point toward EPM transformation. Implementation of a carefully considered EPM strategy can accelerate time to insight, unlock organisational agility and position finance as a strategic business partner – ultimately resulting in more effective decision-making processes.
How EPM supports accelerated value realisation from an ERP transformation
Companies continue to create finance functions with a greater focus on generating deep insight to support business decision making. For the first time in 15 years of tracking data, we are seeing finance teams spending over 30% of its time on business insight in top quartile organisations.
Finance can enable this level of business insight by reimagining its data and reporting strategy. That means bringing together financial and non-financial reporting streams – essential to generate actionable insights.
Instead of waiting 18 months or longer for an ERP implementation, companies can start to capture value from EPM in as little as 3 months. Bringing together disparate data sets into a cohesive and integrated data model – augmented by powerful forecasting and analytics capabilities – will allow businesses to more quickly and effectively make critical decisions, respond to business value shifts and understand cross-functional impacts on performance.
And it’s not only about data. EPM can be a powerful test case for emerging machine learning and GenAI technologies. Many applications of AI, such as predictive forecasting and scenario modeling, already sit within financial planning and analysis teams and are embedded in the majority of leading EPM solutions. Leveraging these solutions can help integrate planning models with a wider amount of data, often from various internal and external sources, building competitive advantage.
Taking an EPM-first approach allows finance to clarify future ERP requirements early by identifying potential roadblocks such as weak data streams, convoluted processes and workforce gaps, which may need to be addressed before or during an ERP implementation.
How to get started
As you explore whether an EPM-first approach is right for your organisation, consider the following:
- Do we have a clear vision for the specific capabilities, processes and operating model that will enable finance as a strategic business partner?
- Does our current data model support the insights we need to be successful as our industry and business model evolves?
- What is our future reporting strategy – and how do EPM, ERP, operational systems and publicly available & enterprise data platforms support it?
- What is our aspiration for value-driver based agile planning processes and integrated business planning?
Answering these questions can help clarify the right path for your transformation — but one thing is clear: taking an EPM-first approach allows you to realise value faster, shape future ERP requirements with confidence, and position finance at the heart of strategic decision making and value creation for your business.
To explore more about how an EPM-first approach can accelerate value realisation for your transformation, get in touch with Dan Brown or Mathea Beck.
