Differences Between EPM and CPM Software-2

The terms Corporate Performance Management (CPM) and Enterprise Performance Management (EPM) are often used interchangeably. These two forms of performance management software help companies manage their resources and keep an eye on their financial goals. Some argue that if you are running a large company, you need both EPM and CPM. Some solutions, like Solver and Anaplan, combine features from both categories into a single solution.

There are two key differences between CPM and EPM:

CPM specifically focuses on providing an enterprise-wide application of performance management, primarily for the company's finance department.

EPM generally focuses on the overall performance of the entire company, extending beyond finance departments to sales, marketing, supply chain, and more.

When comparing CPM to EPM, the choice may seem arbitrary given the similarities. While there are overlaps between the functions of CPM and EPM software, CPM focuses more on finances, whereas EPM concentrates more on the overall performance of the entire company.

What is CPM Software?

CPM covers the following fundamental business processes:

• Consolidation: Tight management and consolidation of an organization's finances.
• Planning: Main areas of financial planning, including budgeting and forecasting.
• Analytics and Reporting: Capturing and reporting data from all applicable areas of an organization.

The ultimate goal of CPM software is to assist organizations in strategic planning and executing informed plans to achieve their financial goals. In this sense, EPM software and CPM software are synonymous. The main distinguishing feature is that CPM offers advanced programs aimed at driving the organization's goal of increasing profits for itself and its shareholders.

Thanks to CPM's more finance-oriented approach to managing a company's performance, organizations can track financial progress more efficiently and perform tasks related to strategic financial planning. CPM helps business leaders make more informed, data-driven decisions to achieve their company's financial goals and targets.

Using CPM Software

CPM software is best utilized for performance management in the following scenarios:

• Specialized Performance Management Processes: CPM software allows you to apply more targeted performance management tactics to your financial planning strategies. CPM software is designed to specifically focus on driving a company's financial goals and increasing shareholder profits.
• Managing Financial Performance Data: CPM software tracks key performance indicators (KPIs) such as operating costs and other expenses, revenue, return on investment (ROI), and other applicable data sources. With CPM software, access to and analysis of a company's financial performance is easier than ever.
• Detailed Analysis: CPM software enables business leaders and finance departments to analyze past and current data accurately to make better decisions about their company's alignment. Detailed analysis information is crucial for financial strategy and planning, and CPM software consolidates financial data in an easily accessible location.
• Practical and Efficient Financial Management: With all your financial data in one central place, managing your company's financial performance with CPM software can be extremely precise and efficient.

What is EPM Software?

EPM software fulfills many of the same functions as CPM software. The main difference is that CPM focuses on the financial data and management of a company, while EPM takes a more comprehensive view across multiple business branches and analyzes the KPIs of each.

Many organizations prefer the more comprehensive approach of EPM for performance management across the entire company compared to CPM. For many companies, all departments play an equally important role in determining the financial results of the company. While CPM focuses on one area of the entire company (namely, the finance department), EPM considers every applicable department in the processes of consolidation, planning, reporting, and analysis.

Using EPM Software

Many companies use EPM and CPM software interchangeably. Focusing on the unique benefits of EPM for your company alongside a CPM system can be a rewarding investment, especially if you have a particularly large company.

EPM software is best used for the following processes:

• A Comprehensive View of Company Performance: The purpose of EPM software is to manage not only the finance department but all performance factors in a company. EPM is a useful tool to give company leaders a clear picture of how different parts of the company work individually and collaboratively.
• Company-wide Analyses: EPM software looks at analyses from virtually every part of a company and tracks the KPIs of multiple departments at once. With EPM, you get an overview of your entire company's performance thanks to advanced analysis technology.
• Extensive Planning: With EPM, budgeting, forecasting, and related planning activities are much more efficient and scalable. Creating annual operating plans is easy with the right EPM software by your side.
• Diverse Applications: While CPM software considers the structure of corporate organizations, EPM software can also be used for a wide range of non-corporate organizations. EPM can easily meet the performance management and planning requirements of organizations in government, education, non-profit, and other sectors.
• Save Time and Energy: Like CPM, when properly applied to business processes, EPM software saves time, energy, and money. Thanks to the ability to automatically capture and consolidate business data from multiple departments simultaneously in a central hub, employees no longer have to manually perform these processes for hours.

The broad organizational focus of EPM software includes monitoring financial performance, but it does not exclusively focus on finance like CPM software. The benefits of each software system are different, and companies should carefully weigh their options before choosing an EPM or CPM system.

More Information About Solver Corporate Performance Management Software

EPM and CPM software offer many benefits to executives and finance managers looking to maximize their decision-making ability in a competitive market. Solver is a user-friendly and innovative CPM solution designed for the ever-changing needs of growth-oriented companies. With a single, cloud-based solution, Solver automates reporting, consolidation, forecasting, and budgeting processes for a complete view of your business.

Solver helps you decide what your company needs based on your current metrics and financial goals. Send us a sales inquiry or request a demo, and a member of our expert team will contact you shortly.