Corporate Performance Management
The challenges facing finance departments have increased significantly in recent years. New business models, increased regulatory requirements and an unstable global environment are putting more and more pressure on the finance department and functional corporate performance management. In many cases, the current financial systems have not kept pace with advancing technological developments. The result is disjointed IT landscapes that are far away from a modern finance department with a high degree of digitalization and automation. The use of integrated corporate performance management systems is an important factor in meeting the requirements of the finance sector.
Optimal corporate performance management in times of digitalization
Historically, many companies have usually used several CPM systems for different tasks and financial processes. There are often separate tools for consolidation, planning and tax reporting. This leads to a high need for manual coordination between the individual departments and applications and the inability to react to new requirements at short notice. A high susceptibility to errors, especially with last-minute changes in the closing process, is closely linked to this.
As a result, we believe that the basis for modern corporate performance management is a close integration of the individual processes in the finance department. All relevant data must be fully available to the accounting, controlling and tax departments in a centralized system. CPM software solutions increase the transparency and flexibility of the finance department and between the individual finance departments and simplify the management of the company.
In addition, the potential of digitalization must be exploited. Here, the automation of processes with the help of RPA (Robotic Process Automation) will play an important role. Data analytics and AI (artificial intelligence) are also becoming increasingly important. This means that self-improving algorithms can already be used to carry out quality checks and identify both systematic errors and inconsistencies.
Corporate performance management systems add new variants to the reporting system. In addition to the existing PDF reports and Excel add-ins, new CPM solutions have dynamic dashboards and interactive reporting interfaces that enable mobile reporting. With the new display options, it is possible to provide consolidated key figures relevant to management in real time without having to carry out all periodic activities.
Corporate performance management as part of the digitalization roadmap in the financial sector
As part of digitalization, CPM software providers have made major changes to their portfolios and systems. Providers are focusing on the integration of financial processes and the use of forward-looking functionalities (e.g. RPA, AI, predictive analytics). System providers in the field of corporate performance management are pursuing very different strategies, which is why it is now more important than ever to consider the requirements of the individual stakeholders when selecting software and to keep an eye on the digitalization roadmap of the finance department.
