Find Out Why You Need Corporate Performance Management Software and Make Better Business Decisions
The benefits of CPM Software are countless.August 5, 2010
Sponsored by Prophix Software
There is a clear need for CPM software in the market. This is because basic CPM applications such as budgeting, consolidation or monthly reporting are not transactional and hence not addressed by most ERP or accounting systems. Although they involve multi-user processes (such as budget approvals or report distribution), they are often consigned to the “Finance can do that with Spreadsheets” bucket; but in most companies, it is not a viable solution to have finance staff developing multi-user systems using spreadsheet products.
The problems with this approach include:
Because of this, there is a clear demand for software that addresses the CPM needs of the marketplace. PROPHIX is an example of a software that is dedicated to meeting this need.
Simply using a spreadsheet as a front-end tool for users to enter data into a budgeting or planning system is not an “industrial strength” solution. While some budget suppliers may be content with simple spreadsheets for data entry, to minimize development and maintenance costs, a true multi-user planning system requires Data Entry functionality such as:
The Benefits of Using Corporate Performance Management Software
The original benefits associated with CPM software, such as the ability to make better business decisions with more accurate data and better analysis, were typically not easily measurable. These benefits are still relevant, but now other more quantifiable benefits are being recognized, such as better employee productivity in the Finance Department and faster month-end closes. Giving staff better analytical tools is often simply asking for more work from people who are already very busy; making them more productive gives them the time to perform and interpret the analysis.
One irony of the business use of computer technology is that the Finance department was usually the first to automate, by using accounting systems to process and store transactions. But now, whereas departments like Production, Manufacturing, Services, Design, and Sales & Marketing are becoming progressively more automated, most ERPs don’t address the modern needs of a Finance department.
What CPM really does is automate processes that otherwise are performed with spreadsheets. With CPM software, Finance departments are embarking on their second wave of process automation. This time, the processes are not accounting processes but analytical processes.
CPM products like PROPHIX are helping the Finance departments become organizational leaders by:
Although historically CPM applications have mainly benefitted Fortune 500 companies, the most active part of the market for CPM software is currently the upper mid-market (companies with revenues between $250 million and $1 billion). Like transactional accounting software before, the benefits of using CPM is becoming available to the mid-market and will eventually percolate down to all companies with revenues of $10 million and above. CPM, especially Budgeting and Financial Reporting, will become essential to running the Finance department of a mid-sized company.
To download an in-depth informative white paper which offers a complete look at CPM Software, including a comparison with Business Intelligence, a comprehensive definition of CPM Software, types of CPM Products, CPM Calculations, Workflow and Data Analysis with CPM and more please click here.
PROPHIX is an easy-to-use product that offers CPAs and financial professionals in the industry the flexibility of enterprise systems coupled with an ease of implementation that makes it much more cost effective. Yet PROPHIX uses an industry-standard OLAP database which gives it the same reporting and calculation flexibility as higher end systems. Watch the NEW eight-minute PROPHIX Autodemo to see why thousands of finance leaders around the world use PROPHIX to empower their organizations and gain greater insight into business performance.
For more information, visit Prophix Software.