It can be hard to define the subtle differences between corporate performance management
(CPM) and enterprise performance management (EPM), as both are focused on enabling companies to reach their goals by connecting strategy to execution. The two terms are also often used interchangeably, particularly when describing the processes, rather than the software that supports these processes. You may also come across business process management (BPM) software, which is focused on increasing efficiency in day-to-day processes. However, CPM and the
CPM software which supports this framework tends to focus more on finance processes, financial management, and financial reporting, while EPM and its associated software takes a more holistic approach, gathering data for key performance indicators across the whole organization.
What is CPM?The term CPM was originally coined by Gartner, who defined it as “an umbrella term that describes the methodologies, metrics, processes and systems used to monitor and manage the business performance of an enterprise.” This is to say that CPM is not a single method or solution. Rather, it is a concept: efficient process management will create better business intelligence, which in turn will drive better strategic planning and decision-making. Effective implementation therefore relies on relevant applications – CPM software – which provide the right data and tools. Uses of CPM softwareCPM software tends to focus more on financial data. The right CPM software enables a range of tasks to be performed quickly and efficiently, using the most accurate and up-to-date data. Different packages have different functionalities, but most will include:
What is EPM?Gartner’s definition of an EPM system is narrower than that of CPM: “The process of monitoring performance across the enterprise with the goal of improving business performance.” It further points out that EPM integrates and analyses data from many different sources. EPM solutions and software can be used by the entire organization, from human resources to marketing, to measure their success against key performance indicators. For example, a marketing team might use it to examine the success of a campaign on social media, using data and analytics to drive key decisions around what platforms should be used, which customers should be targeted, and what content is driving engagement. EPM systems also emphasize the importance of revisiting, reporting, and reviewing to keep pace with best practices, rapidly changing industries, and business landscapes. Uses of EPM softwareEPM software usually takes a wider view of an organization than CPM, meaning it can be applied to a variety of organization types, such as universities, non-profits, or government agencies. It has the functionality to encompass key performance indicators in processes and functions which take place across the entire company, such as supply chain, HR, sales, or procurement, as well as finance. Many of its functions can also be found in CPM software. Like CPM software, it aims to replace company-wide reliance on spreadsheets, enabling information to be gathered, analysed, shared, and used with maximum efficiency. It can be used for:
The strategic importance of CPM softwareBy allowing automatic data collection, a central storage point, and ease of sharing, plus task tracking and simple standardised workflows, CPM software aims to solve the pain points created by reliance on traditional spreadsheets and manual data entry. It is estimated that around 90% of all spreadsheets contain errors, which can have catastrophic results. It was a simple spreadsheet error which double-counted debt, for example, and caused investment bank Lazard Ltd to undervalue SolarCity Corp, the solar energy company by $400mbefore its sale to Tesla. CPM software brings an immediate benefit to your team. Its timesaving, improved efficiency and accuracy will free up your finance professionals to concentrate on tasks which add value, and to further improve processes such as the financial close. However, CPM software can also make a vital difference when it comes to a company’s long-term strategy. Being able to access and analyse this data enables finance teams to make longer-term decisions based on facts. Data visualisation allows for easy information sharing up to and across decision-makers in non-financial department, along with investors and shareholders. Companies are collecting more data than ever before: over the next two years,the amount of enterprise data is set to increase at an annual rate of 42.2%, according to a report from Seagate. But that same report points out that 68% of that data goes unused. The winners will be those companies who use the data: who collect, share, and learn in order to drive improvement and surpass strategic goals. CPM software enables companies to have the right data at the right time: key to success in an increasingly uncertain world.
What are the main differences between CPM and PERT?PERT deals with unpredictable activities, but CPM deals with predictable activities. PERT is used where the nature of the job is non-repetitive. In contrast to, CPM involves the job of repetitive nature. There is a demarcation between critical and non-critical activities in CPM, which is not in the case of PERT.
What are three differences between PERT and CPM?Determine the time needed for each project activity. Manage the critical path. Update the PERT chart as the project progresses.
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PERT vs CPM.. What is CPM and example?The CPM would describe the sequence that takes the most time. For example, if you're building a house, you would have several task sequences as follows: Each task takes a different amount of time and resources. It takes more time to build walls and lay the roof than to install faucets and fixtures.
What is meant by CPM?The critical path method (CPM) is a step-by-step project management technique for process planning that defines critical and non-critical tasks with the goal of preventing project schedule problems and process bottlenecks.
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