Oracle EPM Index, Round 2
By frank.buytendijk on Jan 27, 2010
Oracle on January 19 launched Oracle Enterprise Performance Management (EPM) Index II - the second study to investigate the progress of business towards Management Excellence.
Key findings from interviews with 800 organisations in Europe and North America show that the recession may have actually had a positive effect on firms - forcing them to integrate and improve management performance processes and recognise the benefits of treating key management performance processes as a whole, not as disparate parts.
Calculated on a scale of 0 to 10, the overall Index for all of the surveyed countries has leapt by 38% from 5.13 in the first report to 7.04 in Oracle EPM Index II. The increase reflects an improvement in performance management confidence across all geographies, sizes of organisations and all verticals.
As with the first report, analyst group Quocirca asked business decision makers to rank their organisations on the quality of their processes and accuracy of information governing the six inter-dependent areas of EPM: the stakeholder environment, market model, business model, business plan, business operations and business results.
Along with increased confidence about progress towards Management Excellence, results from the six key areas assessed in EPM Index II reveal that businesses:
* Increasingly accept the need to adhere to the principles of enterprise performance management.
* Perceive significant improvements in their strategic planning and reporting processes.
* Are still too internally focused, at the expense of wide-ranging stakeholder expectations, and have comparatively weak levels of integration between the operational areas.
* Have an increased focus on customer loyalty to drive growth as opposed to new products, services or geographies.
* Now generally acknowledge the importance of Business Intelligence as a key reporting tool.
According to Frank Buytendijk, vice president and fellow of Enterprise Performance Management, the findings show that businesses are now a lot more confident that they can handle "the new reality of today's economy".
"The improved Index doesn't as much signal any material advances, but this rediscovered confidence creates the preconditions for real improvement to take place," he added.
"Comparing it to a rise in consumer confidence preceding a spending increase, this increase in performance confidence will precede new projects and improved ways of working."
Buytendijk said that finance departments spent 2009 fixing broken processes and information flows and - based on the findings of Oracle EPM Index II - "businesses now understand better that key management performance processes need to be integrated."