Enterprise Performance Management (EPM) consists of a set of management and analytic processes, supported by technology, that enable businesses to define strategic goals and then measure and manage performance against those goals. Core EPM processes include financial and operational planning, consolidation and reporting, business modeling, analysis, and monitoring of key performance indicators linked to strategy.
EPM involves consolidation of data from various sources, querying, and analysis of the data, and putting the results into practice. EPM enhances processes by creating better feedback loops. Continuous and real-time reviews can help to identify and eliminate problems before they grow. EPM's forecasting abilities help companies take corrective action in time to meet earnings projections. Forecasting is characterised by a high degree of predictability which is put into good use to answer what-if scenarios.
EPM can help in risk analysis and in predicting outcomes of merger and acquisition scenarios and in planning to overcome potential problems. EPM provides key performance indicators (KPIs) that help companies monitor efficiency of projects and employees against operational targets.