Top Ten ePM trends for next decade
With enormous traction in the ePM space happening over last few years, the next decade (2010-2020) is definitely going to be key decade for ePM. As an active practioner of ePM in the last decade, the focus of my blog series would not be just on technology but the business process aspects of ePM. What are those top 10 trends. Here it goes…
Trend # 10 – Sustainability
Over the next decade, large corporations are going to grow larger. Smaller corporations would be targets of acquisitions. Probably lot of companies’ investors would set up themselves in such a way that the big fish can take over them at some point. Whether you are acquired or grow, one of the important aspect is going to be – is your business long term sustainable. Sustainability is going to drive your value. From a Enterprise Performance Management initiative perspective, making the organizations more sustainable is going to be key. What does this mean? We need to identify the metrics and KPIs that drive sustainability, not just the business performance. Also another narrower understanding of sustainability is – it is more associated to just ‘Go Green’ revolution (environmental). Though it is an important part of the sustainability, sustainability is broader.
Sustainability can be broadly measured through the important aspects of Social, Environmental and Economic metrics and KPIs. While the past decade has been focused on Economic (read financial) aspect of Enterprise Performance, the Next Decade is going to look beyond just economic performance, more into social and environmental metrics. The balance scorecard needs to bring these additional perspectives.
1. Economic Metrics (traditional business performance) – Profitability, Revenue, Cash Flow
2. Social Metrics – Employee Satisfaction, Community Programs
3. Environment Metrics – Waste generation, Energy consumption
ePM initiatives and strategy would be directed not only to have a profitable organization but a sustainable organization. This is going to be top most priority for CEOs (Coco Cola’s CEO wants him to be called as Chief Sustainability Officer and want to get a sustainable corporation as his vision 2020, over the next decade, check out his references to having sustainability as part of the business plans and metrics – true indicator of how this would be part of ePM initiative) as they would start to look at reviewing their business and looking at the future strategy and decisions, based on sustainability KPIs.
Harvard review also analyses sustainability imperative in this article.
Technology surrounding sustainability is going to be key to get the ePM framework crystallized in the next few years. SAP has pioneered and brought out this thought leadership already with their Sustainability Performance Management solutions, that is part of their SAP EPM solutions, with the goal to take ePM beyond just business performance.
Check out the top sustainability companies in the world, interesting
Please keep reading this blog series, as i post the other trends in next few days.