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Sustainability Performance Management – Next Big thing in EPM

Since last few years, the industry focus is on optimization initiatives. It was outcome of a thought process post slow down few years back. So the questions that head honchos really asking was – I want to cut down the cost – but other than the employee layoffs, what are other areas that I should be looking at ? Where Do I spend more ? Who is spending ? Why ? Are there alternatives to get the same things cheaper? And all these questions lead to Business intelligence Dashboards. So finally BI come to an age, entered the drawing board of C level Executives and they started looking at it seriously.

So the Enterprise Performance Management – the new Avatar of Business Intelligence Dashboards – is what everybody is talking about. It all started with the financial things, as that was a priority number one – save money. Identify opportunities for potential savings. So Spend Performance Management is now a serious solution customer looks at.

What’s the next thing industry will now look at – I think it will be Sustainability Performance Management. Lot of research reports  in 2012 – suggested that CEOs thinking of sustainability as a strategic initiative rather than mere operational or CSR kind.  One study concluded that “96 % of CEOs believe Sustainability should be integrated into the strategy and operations of a company – up from 72 % in 2007 “.

What are the change drivers ?

  • Sustainable Business Model – Secure business success
  • Resource Productivity – Decrease dependance from energy and natural resources
  • Advantage in Competition – Foster branding, Enhance product portfolio by sustainable products
  • Cost & Risk of compliance – Automation of compliance

The SAP Solution Map covers broad range of solution areas –

Sustainability Solution Map.PNG

As we enter into the new year 2013 – I think SAP will have multi dimensional success in sustainability domain due to its dual strategy – Being a leader by example. SAPs own sustainability  initiative internally will brand itself as a exemplar. On the other hand, with its innovative solutions starting from SuPM will make it Enabler for the larger industry.

We will surely follow on this topic more in coming time.


Prashant Mendki @pmendki

Sustainability Solution Map.PNG
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