3 Reasons Why An Investment In CPM Has A High Return On Investment


3 Reasons Why An Investment In CPM Has A High Return On Investment

By Sam Cheo, Managing Director, Sigma Conso Asia

 

It is important that any investment in a company-wide software needs to have its own set of justifications to justify why it is worth the money. From the perspective of any company, a good investment is one that has high return on investment.

There are three good reasons why an investment in Corporate Performance Management (CPM) software will lead to high return on investment for any company in an industry.

3 Reasons Why An Investment In CPM Has A High Return On Investment

1. Raising The Company’s Productivity

Budgeting, forecasting and strategic planning are labour-intensive business activities that can take a few months to complete. Back and forth meetings are needed to edge out the details of budgeting and forecasting plans between multiple departments. After which, the management still need to have their say on the plans before the budget and forecasting plans head to the decision makers’ desks.

CPM software can reduce the lead time for budgeting, forecasting and strategic planning with its business intelligence tools. With the right CPM software application, it raises the ability of a company’s finance department. The right CPM software application allows the finance department to manage performance proactively with the full range of planning processes well integrated to the company’s operations. And it is not just limited to the finance department. Decision makers at the top level of the management are also able to make much quicker and precise business decisions. In short, investing in the right CPM software application enhances the company’s productivity, from the finance team to the top-level management.

2. Discovering New Possibilities To Enhance The Core Business

CPM software leaves no stone unturned in any budgeting, forecasting or strategic planning exercise. With CPM software, simulations can be performed with a variety of scenarios to project for all possible scenarios in budgeting, forecasting and strategic planning exercises. While this can also be done on excel sheets, the sheer computing power of CPM software is much more powerful than excel. This means that much more scenarios can be run and tested on CPM software.

The running of thousands of scenarios allows planners and analysts to uncover hidden business options that the company can take, which can possibly increase profits or manage capital much more effectively for the company.

3. Real Time Collaboration

“The file is not ready yet. I’m still working on it. Let me finish and save it before you download it”. Find this familiar? It is hardly surprising to hear answers like this in organisations that do not have any real-time collaboration tool. Users of the same file often have to communicate physically to ensure that they are writing on the latest version of the same file.

By introducing a CPM software, the company can encourage more collaborative communication amongst departments and between departments. For example, the collaborative platform on CPM software allows the finance team to see which department has already submitted and confirmed their data and which department is still reviewing their contribution. In addition to this, comments and reviews can be made simultaneously while someone else is working on it.

The real time collaborative function of CPM software reduces the time taken for data collection and processing and frees up time for analysis, simulations and scenario creations.

Note: this article was originally published on LinkedIn.


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