How to Maximize Profits with Enterprise Performance Management (EPM) in 5 Steps

How to Maximize Profits with Enterprise Performance Management (EPM) in 5 Steps

By Marta Teneva

How to Maximize Profits with Enterprise Performance Management (EPM) in 5 Steps

By Milan Pinalov

March 11, 2024

Achieving and sustaining profitability has always been extremely important for organizations across industries. With the increase of competition, evolving customer demands, and economic uncertainties, maintaining a profitable bottom line requires more than just traditional financial management approaches. This is where Enterprise Performance Management (EPM) helps businesses to not only manage but also drive profitability effectively. 

In this blog article, we will explore the role of Enterprise Performance Management (EPM) as an essential tool for businesses navigating modern market complexities.  

We detail its core components and benefits, alongside a five-step strategy for leveraging EPM to maximize profits, with a spotlight on how Anaplan enhances EPM effectiveness. 

Table of Contents

What Is Enterprise Performance Management (EPM)? 

5 Proven Steps to Enhance Productivity with Enterprise Performance Management (EPM) 

Why Anaplan Is the Ultimate Enterprise Performance Management Software

Enterprise Performance Management FAQs

Leveraging Anaplan for EPM: Strategies for Next-Level Profitability and Performance with B EYE

What Is Enterprise Performance Management (EPM)? 

Enterprise Performance Management (EPM) consists of the processes, methodologies, metrics, and systems used by organizations to monitor and manage their business performance effectively. It aligns strategic goals with operational activities, enabling businesses to optimize their performance across various functions such as finance, operations, sales, and marketing. 

At its core, EPM focuses on: 

  • Strategic Planning: With EPM, you can define your organization’s long-term objectives and develop actionable strategies to achieve them. EPM allows you to align your financial and operational goals, so you can prioritize initiatives that drive profitability and sustainable growth.
  • Performance Measurement: EPM’s key performance indicators (KPIs) and metrics help you evaluate the effectiveness of your business processes and activities. You can track relevant performance indicators to identify areas of improvement and make data-driven decisions to enhance profitability.
  • Financial Consolidation and Reporting: EPM simplifies your financial consolidation processes and enables accurate and timely reporting. By consolidating financial data from different sources, you can gain a comprehensive view of your financial performance. This allows you to identify trends, detect anomalies, and ensure regulatory compliance.
  • Budgeting and Forecasting: EPM empowers you to develop robust budgeting and forecasting models that support informed decision-making. It allows you to leverage historical data, market insights, and predictive analytics to create realistic financial plans. What’s more, EPM allows you to anticipate future trends effectively, enhancing your ability to achieve profitability targets.

5 Proven Steps to Enhance Productivity with Enterprise Performance Management (EPM)

B EYE presents a visual guide illustrating '5 Proven Steps to Enhance Productivity with EPM', including strategic planning, financial consolidation, performance measurement, budget forecasting, and agile decision-making, each described with specific strategies to improve business success.

Step 1: Revamp Strategic Planning 

Use EPM to rethink your strategic plans. Connect your long-term goals with practical strategies, merging financial and operational aims. Focus on initiatives that promise profit and long-term growth to steer your business toward success. 

Step 2: Be Precise with Performance Measurement 

Harness EPM’s tools, such as key performance indicators (KPIs), to measure how well every part of your business is doing. Keep track of these indicators to find areas where you can improve, guiding your decisions with data to make your business more profitable. 

You May Also Like: What Are the Most Important Manufacturing KPIs? 

Step 3: Master Financial Consolidation 

Simplify your financial reporting with EPM. Bring together data from different sources seamlessly to get a complete view of your finances. Spot trends, anomalies, and stay compliant with regulations to keep your profitability going strong. 

Step 4: Excel in Budgeting and Forecasting 

Use EPM to create solid budgeting and forecasting models. Analyze past data, market insights, and predictive analytics to make realistic financial plans. Anticipate future trends accurately, so your organization consistently hits its profit targets. 

Case Study: Forecasting and Annual Operational Planning for FP&A Users 

Step 5: Integrate Agile Decision-Making 

Utilize EPM to make quicker decisions. Optimize resource allocation based on real-time insights and strategic goals, boosting productivity and profitability across your business. 

Why Anaplan Is the Ultimate Enterprise Performance Management Software 

With Anaplan, you gain access to a leading cloud-based platform for enterprise planning, offering several advantages that enhance the effectiveness in EPM initiatives. 

A B EYE graphic detailing the benefits of Anaplan for EPM processes: scalability and flexibility, agility and speed, collaboration and alignment, and advanced analytics and insights, emphasizing how these features contribute to effective business growth and strategy alignment.

Scalability and Flexibility: Anaplan’s cloud-based architecture allows you to scale your EPM processes seamlessly as your business grows. With flexible modeling capabilities, you can adapt your planning and forecasting models to accommodate changing market conditions and business requirements. 

Collaboration and Alignment: Anaplan facilitates collaboration and alignment across different departments and functions by providing you with a centralized platform for planning and decision-making. By enabling real-time data sharing and collaboration, all stakeholders have access to accurate and up-to-date information, fostering alignment towards common goals and objectives. 

Advanced Analytics and Insights: With Anaplan, you have access to advanced analytics capabilities that enable you to derive actionable insights from planning and performance data. By leveraging Anaplan’s predictive analytics, scenario analysis, and what-if modeling, you can anticipate market trends, identify opportunities, and mitigate risks. 

Agility and Speed: The in-memory calculation engine and intuitive modeling interface empower you to analyze large volumes of data quickly and efficiently. By accelerating your planning cycles and decision-making processes, Anaplan helps you respond rapidly to changing market dynamics and capitalize on emerging opportunities, thereby giving you a competitive edge. 

By integrating Anaplan’s advantages with EPM methodologies, you can drive profitability effectively by: 

This image by B EYE showcases how Anaplan enhances enterprise performance management with four key areas: optimizing resource allocation, enhancing pricing strategies, improving operational efficiency, and mitigating risks, highlighting the platform's role in driving profitability.

Optimizing Resource Allocation: With Anaplan’s scalability and flexibility, you can allocate your resources effectively based on real-time insights and strategic priorities, maximizing productivity and profitability across the enterprise. 

Improving Operational Efficiency: Anaplan’s advanced analytics and modeling capabilities help you identify inefficiencies and streamline your operations, reducing costs and enhancing profitability margins. 

Enhancing Pricing Strategies: Anaplan’s collaboration features and predictive analytics empower you to develop targeted pricing strategies that maximize revenue and profitability, while ensuring alignment with market dynamics and customer preferences. 

Mitigating Risks: With the scenario analysis and what-if modeling capabilities, you can assess and mitigate risks effectively, safeguarding your financial performance and profitability against potential threats. 

Discover More: Anaplan vs. Excel: Why Connected Planning Outshines Spreadsheets 

Enterprise Performance Management FAQs 

Leveraging Anaplan for EPM: Strategies for Next-Level Profitability and Performance with B EYE 

Achieving and sustaining profitability requires a strategic and proactive approach to performance management. Enterprise Performance Management (EPM), enhanced by Anaplan’s advantages, serves as a powerful tool for organizations to manage and drive profitability effectively. By leveraging Anaplan’s Enterprise Performance Management software, businesses can optimize resource allocation, improve operational efficiency, enhance pricing strategies, mitigate risks, and build a performance-driven culture, maximizing their bottom line and ensuring long-term success. 

As a premier Anaplan partner, B EYE brings technological expertise and business know-how to your planning needs.   

Our certified Anaplan consultants specialize in tailoring Anaplan’s suite to optimize your processes.   

Connect with us to start a conversation about how we can transform your approach to EPM to improve your financial planning, data analysis, and overall business agility. 

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