Enterprise performance refers to the management, monitoring and analysis of key business metrics across all facets of an enterprise, across departments, LoBs and subsidiaries with the goal of improving processes, efficiency and strategic cohesion.
In order to optimize the transformative potential of enterprise performance, many forward-looking businesses are choosing to use an enterprise performance management system. According to Gartner, “Enterprise Performance Management (EPM) is the process of monitoring performance across the enterprise with the goal of improving business performance. An EPM system integrates and analyzes data from many sources, including, but not limited to, e-commerce systems, front-office and back-office applications, data warehouses and external data sources. Advanced EPM systems can support many performance methodologies such as the balanced scorecard.
Enterprise performance follows a closed loop model which encapsulates strategy formulation, business planning and forecasting, financial management, and supply chain effectiveness.
The model follows six stages:
- Strategy development
- Strategy translation
- Organization alignment
- Operations planning
- Learning and monitoring
- Testing and adaptation