5 Essential Questions to Ask Your Corporate Performance Management Software Provider

The journey to excellence for businesses in the 21st century is paved with copious amounts of data, strategic planning, and performance analysis. In the midst of this, Corporate Performance Management (CPM) software has become an invaluable asset. CPM software can expertly handle tasks like budgeting, forecasting, financial consolidation, reporting, and analytics—acting as a linchpin in the machinery of corporate performance management. However, the choice of the right software and provider warrants extensive deliberation. To navigate this complicated terrain, here are five essential questions that you need to ask your potential Corporate Performance Management Software provider.

• How does your software facilitate data integration?

  In today's world, data is a precious commodity. Organizations continually crunch vast amounts of data from various sources—be it financial, operational, or sales data. This is where the concept of data integration comes into play. It’s the process of combining data from different sources into coherent, actionable information. A robust CPM software should not just be able to manage data from disparate sources, but also integrate and standardize it for further analysis.

  Why does this matter? A study by Experian revealed that inaccurate data had a direct impact on the bottom line of 88% of companies, with the average company losing 12% of its revenue. Therefore, ask your provider about the software’s capabilities in handling data integration. Is it able to integrate seamlessly with your current systems? Can it handle both structured and unstructured data?

• How does the software handle scenario planning and forecasting?

  Scenario planning and forecasting are pivotal for companies to maintain a strategic edge. They equip companies with the ability to anticipate future market trends, plan for various scenarios, and make informed business decisions.

  A potent CPM software should offer robust capabilities in this area. It should allow you to create multiple scenarios and forecasts based on different parameters. Additionally, it should offer predictive analytics capabilities, powered by machine learning algorithms, to project future trends based on historical data.

  Ask your provider about how their software supports scenario planning and forecasting and whether it includes predictive analytics. Ascertain whether the software allows you to tweak inputs and assumptions easily and how it visualizes the impact of these changes.

• Can the software handle real-time reporting?

  In the fast-paced world of business, real-time reporting is crucial. It facilitates immediate decision-making and ensures businesses stay agile and responsive.

  When you're considering a CPM software, examine its reporting capabilities in depth. Does the software support real-time reporting? Can it provide customized dashboards for different stakeholders? How quickly can it generate reports, and how easy is it to extract and share these reports?

  Real-time reporting can drastically impact business operations. According to a survey by Aberdeen Group, organizations that used real-time reporting improved their customer satisfaction rates 17% more than those who did not.

• How secure is your software?

  With increasing data breaches and cyber-attacks, data security is critical. According to a report by IBM, the average cost of a data breach in 2020 was $3.86 million.

  When selecting a CPM software, check how the provider ensures data security. Do they offer role-based access to safeguard sensitive financial data? What measures do they take to ensure data encryption, both at rest and in transit? How do they handle disaster recovery and business continuity?

• What kind of support and training do you offer?

  Implementing a new CPM software can be a complex task. Employees need to be trained, and technical issues can crop up post-implementation. Therefore, it's essential to understand the level of support and training the provider offers.

  Does the provider offer comprehensive training to help your team understand the software? What kind of post-implementation support do they provide? How quickly can they resolve technical issues?

In conclusion, selecting the right CPM software can be a game-changer for your business. By asking these questions, you can ensure that your chosen software meets your organization's unique needs and propels you towards data-driven decision-making and optimized business performance.