Enterprise Performance Management (EPM) processes – such as budgeting, planning, financial consolidation, reporting, and analysis – are extending across the enterprise…and into The Cloud.
According to a Host Analytics survey, cloud-based EPMs are becoming popular with the finance crowd, but users are most concerned about performance and security.
- Today’s finance professionals are optimistic about their companies’ performance and view themselves as strategic partners to the business with responsibilities that go beyond traditional finance and accounting roles.
- From a technology perspective, many finance professionals cite a lack of systems and tools and 48 percent cited difficulty in accessing the necessary data or reports. The non-technology related factors cited by respondents were: lack of time, the organization does not value input from finance, and high staff turnover.
- Technology continues to play a bigger role in the finance department with the continued, widespread use of spreadsheets and the rise of Big Data – plus the adoption of cloud-based platforms.
- Cloud-based EPM interest and adoption continues to grow as 41 percent of respondents currently have a cloud-based EPM solution, 29 percent are evaluating them, 23 percent plan to move to the cloud in the next few years, five percent are planning to move to the cloud in the next two to three years, and only two percent reportedly have no intentions to move to the cloud.
- The two biggest concerns in moving to a cloud-based EPM are performance and security. However, businesses are getting used to the idea with more and more enterprises citing they are more comfortable today with it than they were two to three years ago.
- Finance professionals are absolutely aware of the organizational and technology barriers to success.
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These findings, along with other insights into the finance function, come from a survey of over 250 senior level professionals in finance and accounting commissioned by Host Analytics and conducted by Radius Global Market Research. The study set out to better understand the role that finance departments play in today’s organizations and uncovered perceptions and trends about the role of finance and technology in businesses today.
What do these findings tell us?
Enterprises want to optimize financial performance and operational excellence – and they are looking more and more to cloud-based EPM solutions as part of their efficiency strategy to better management of planning, reporting and analytical applications. The push for tighter enterprise performance analysis of internal and external financial reporting is increasing. Organizations want better predictive analysis, strategy management, risk analysis, collaborative revenue forecasting, financial consolidation and visual and prescriptive analysis. The push for better long-range strategic financial planning, including capital planning, budgeting and scenario planning is accelerating.
EPM innovation is responding with web-based user experiences, social collaboration strategies and management reporting solutions designed for faster calculations, predictive analysis based on advanced algorithms and machine learning – as well as cloud-enablement for mobile efficiency.
The EPM market is evolving and expanding to deliver a truly dynamic enterprise performance deliverable for today’s finance professionals, with advancements in software delivering more mature solutions for planning and budgeting, consolidations and financial reporting.
What has been your experience with cloud-based EPM solutions? Let us know in the comment section below.