“Big data,” and “data analytics,” have become catchphrases in the business world over recent years, as businesses attempt to make sense of the massive amounts of data being collected through everyday business operations. With an average return on investment (ROI) of every dollar spent on analytics at $13.01, according to Nucleus Research, the rewards of implementing business analytics are clear. But the labor and time-intensiveness of traditional business analytics and intelligence can be a barrier for companies in the middle market without dedicated in-house analytics functions.
Corporate Performance Management (CPM) solutions offer a software solution to provide real time business analytics to inform business decisions. Since CPM aggregates data from multiple sources and provides management tools outside of traditional business analytics, it provides a comprehensive view of the company as analytics are directly combined with go-forward planning and strategy. Not only does CPM address a lack of business analytics, it functions to remove information silos that hinder business growth.
In a CPM solution, dashboards and scorecards provide an overview of key performance indicators (KPIs) and other metrics at a glance. When dashboard KPIs are tailored to critical business drivers and goals, the dashboards allow key decision makers to constantly monitor progress and adjust course accordingly. Performance or management reporting consolidates both operational and financial results, developing a narrative context for this executive planning function.
Because of simplified financial and operational reporting, data used in budgeting, planning and forecasting is up to date and accurate, as forecasts are continuously measured against actuals. A decrease in manual rekeying and rollup of information means timely and relevant forecasting that has a greater impact.
Beyond providing business analytics, CPM provides a business framework for strategic management and planning. By implementing CPM solutions, organizations are able to become more efficient and more profitable. To find out more about this or other ways that RSM can assist you with your business needs, contact RSM’s management consulting professionals at 800.274.3978 or email us.