While past decade saw Budgeting, Planning and financial consolidation as the core business process surrounding Performance Management, the biggest business problem that LoB and CFOs would like to analyze and look up to ePM framework is ‘Profitability Performance’ or ‘Profitable Analysis’ or ‘Profitability and Cost Management’.
Financial Analyst or Management Analyst spend enormous time to find out answers for these core questions, with examples from some industries:
As you see from the above example, its evident that profitability management is a key driver in every industry and having a solution to manage this will give instantaneous results.
To achieve the right results, there needs to be provision to build complex cost and profitability models, and also a powerful and robust allocation engine. Allocation engine is the key to get the results allocated to the right product, customer, project etc.
Based on the above, Profitability and Cost Management adoption is going to be one of the biggest areas in the ePM framework over the next decade. With the right software solutions, organizations can aim to achieve and get answers to the very pressing problems laid above.
SAP BusinessObjects through their acquisition of the ALG, have a best in class solution for handling Profitability performance. This is going to be a key component of ePM initiative of every organization in the next decade.
Top Ten ePM trends for Next Decade - #7 Top Ten ePM trends for next decade - #9
Please keep reading this blog series, as i post the other trends in next few days.
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
User | Count |
---|---|
12 | |
10 | |
9 | |
7 | |
7 | |
6 | |
6 | |
6 | |
6 | |
4 |