Organizational Pyramid and EPM

 When a new joiner in IT,  in team asked about basic queries related to EPM, I thought it is good time to pen down  basic facts about EPM in any Organization's pyramid on this weekend. 

Where is EPM used in any organization?

What is the purpose of EPM?

Why it is referred as important finance technology? (Why do people get paid more considering it as niche skill? )

Yes, I used to always think of these queries and finally after some learning and experience , got a fair idea about EPM in any organization.

Let’s think about pyramid of any organization, whether it is IT, manufacturing, automobile, financial or any other domain.

Every organization has this pyramid
 

• 1)      Bottom Most Layer contains front end executives. These include day to day business operations. So these are nothing but operating activities of organization.
• 2)      Middle layer consists of integrations of various business activities, hence integration tools like CRM, SCP are included in this layer.
• 3)      Topmost layer is layer of top level executives who are strategic decision makers for organization. This layer include CFO, his/her core team who are responsible for executive decision making, executive learning, executive MBA. This layer executives are responsible for EPM – Enterprise Performance Management.

 Now let us move to EPM layer

 

•      Financial Planning and Analysis Team
• 
  
• Financial planning and analysis (FP&A) is a set of four activities that support an organization's financial health:
• 1) planning and budgeting,
• 2) integrated financial planning, 
• 3) management and performance reporting,
• 4) forecasting and modeling. 
• FP&A solutions enhance the finance department's ability to manage performance by linking corporate strategy to execution. 
• 
  
•      EPM Consultants include both technical and functional consultants - We belong here. 
• From technical perspective, an EPM system such as Oracle EPM is an enterprise software that provides a platform (framework, product, tool…) specified for EPM purpose. Implementation consulting firm will base on that platform to configure, develop specific system that suits with specific company/enterprise/organization.
• 
  

For implementing EPM, there are many vendors and leading one is Oracle EPM contributing to 30% of EPM market.

 Oracle Enterprise Performance Management (EPM) Cloud

Oracle Enterprise Performance Management Cloud Service provides end-to-end business processes to meet the requirements of most organizations and ensure a connected and agile experience across multiple business processes.

1.       Connected Planning      
   
   
2.       Financial Close

3)      Narrative Reporting 

4)      Enterprise Data Management