In a constantly changing market environment, businesses are under pressure to make decisions quickly, accurately and based on real data. On the other hand, traditional methods of planning, budgeting and financial forecasting become less effective.
This is where EPM (Enterprise Performance Management) comes in – a holistic performance management system that helps businesses link Strategy – Budget – Forecast – Performance through integrated data sources and intelligent analytics.
This article is aimed at CFOs, FP&A professionals and Board of Directors, providing a comprehensive perspective on the role of EPM in modern corporate governance, while suggesting the most effective EPM implementation solutions to improve decision-making capacity and optimize organizational performance.
What is Enterprise Performance Management?
EPM (Enterprise Performance Management) is an enterprise performance management system that helps link strategy - budget - forecast - execution performance through integrated data.
EPM is not just a financial tool but a comprehensive management process where data is used to translate strategy into concrete action plans.
The system helps businesses set goals, track performance, analyze results, and continuously improve operations, based on the connection between operational and financial data.
In addition, EPM also acts as a communication bridge between managers and employees, ensuring that all personal goals are linked to the strategic direction of the organization, thereby improving productivity and decision-making efficiency.
Semantic Distinction: EPM, CPM, BPM
Below is a semantic comparison table between EPM, CPM and BPM – helping to clarify the scope, goals and application objects of each performance management model.
| Criteria | EPM (Enterprise Performance Management)<br>Enterprise Performance Management | CPM (Corporate Performance Management)<br>Corporate Performance Management | BPM (Business Performance Management)<br>Business Performance Management |
| Scope of application | The entire enterprise (including departments, units, regions) | Group or parent company level, where there are many member units | Specific department, process, or business group level |
| Main objective | Linking Strategy – Budget – Forecast – Performance in one closed system | Optimize financial performance and consolidated governance among subsidiaries | Improve operational processes and business performance at the operational level |
| Data center | Integrated data from finance, operations, human resources, sales… | Consolidated data and group-level financial reporting | Process, production, service, customer data |
| Target audience | CFO, FP&A, Board of Directors, functional departments | CFO, Corporate Executive, Consolidated Accounting | Operations Manager, Department Manager, Sales Team Leader |
| Typical support tools | Oracle EPM Cloud, SAP BPC, Anaplan, Workday Adaptive Planning | Oracle Hyperion, IBM Cognos, SAP Group Reporting | Power BI, Tableau, Zoho Analytics, Odoo |
| Expected results | Make data-driven strategic decisions, optimize overall performance | Control and consolidate corporate finances, transparent reporting | Improve productivity, reduce costs and enhance process efficiency |
| Administrative properties | Focus on overall business performance | Focus on corporate-level financial performance | Focus on business performance |
What is Closed Loop Process and PDCA Model in EPM?
EPM is not simply a management tool, but a comprehensive operating model that helps businesses operate in a closed-loop model – where strategy, planning, execution and performance evaluation are closely linked together.
In this model, EPM provides comprehensive visibility into business operations, ensuring that every decision is data-driven and continuously feedbacked to optimize performance.
The core processes in EPM include:
- Financial and operational planning
- Building business budgets and forecasts
- Scenario modeling and consolidation reporting
- Analyze and monitor key performance indicators (KPIs) linked to strategy
To operate effectively, businesses often apply the PDCA model (Plan – Do – Check – Act) in EPM:
- Plan: Build strategy, budget and business model.
- Do: Deploy the plan across the entire system and department.
- Check: Measure, track, and analyze performance data.
- Act: Take corrective action and optimize the plan based on actual results.
As a result, EPM not only supports data management but also creates a closed management cycle, helping businesses adapt quickly, make accurate decisions and continuously improve performance.
What Are The 5 Core Functions Of EPM In Supporting Financial Management?
Below is a detailed analysis of the 5 core functions of EPM in financial management, with professional and coherent wording - suitable for articles aimed at CFOs, FP&A and Board of Directors.
Planning & Budgeting
EPM helps businesses build detailed strategic plans and budgets based on consolidated data, eliminating fragmentation and inconsistencies between departments. Instead of relying on dozens of separate Excel spreadsheets – prone to errors and difficult to control – EPM standardizes the planning process, ensuring all data is updated in real time, clearly decentralized and traceable.
EPM reduces “Excel chaos” by automating the planning process, allowing multiple data entry teams on the same platform, helping CFOs and FP&A teams quickly compare, adjust, and approve budgets with greater accuracy.
Forecasting
While traditional forecasting is often done periodically (quarterly or annually) and lacks flexibility, EPM supports the Rolling Forecast model – allowing businesses to continuously update forecasts based on actual market fluctuations.
With Rolling Forecast, metrics such as revenue, costs, profit margins or cash flow can be adjusted based on real-world data, helping management respond promptly to economic fluctuations and make rapid strategy changes.
EPM helps turn forecasting into a strategic decision-making tool rather than just an administrative exercise – creating the foundation for proactive management.
Financial Consolidation & Close
EPM plays a central role in automating the process of consolidating financial data across multiple divisions, regions, or subsidiaries – especially useful for corporations operating in multiple industries and currencies.
The EPM system helps standardize consolidation rules, handle exchange rate differences, eliminate intercompany transactions, and significantly shorten financial close times.
EPM not only ensures accuracy and EPM data transparency financial, but also provide fast, reliable IFRS or VAS consolidated reports to CFO and Board of Directors.
Business Modeling
EPM allows businesses to build and simulate “What-if” scenarios to assess the impact of risks or opportunities on financial performance.
Thanks to its flexible modeling capabilities, EPM helps management make strategic decisions based on quantitative data, rather than gut feelings – especially during investment planning, expansion or restructuring.
Management Reporting
One of the greatest values of EPM is the ability to link Plan and Actual data to track key business KPIs. Through intuitive dashboards, CFOs and managers can monitor variance analysis in real time and detect early discrepancies in financial performance.
EPM helps transform reporting from “past-based” to “future-oriented”, supporting leaders to make quick, accurate decisions based on real data insights.
In summary, the five core functions of EPM not only support more effective financial management, but also build the capacity to forecast, analyze and make strategic decisions based on data, leading businesses towards a modern management model - "Data-driven Performance Management."
What is the strategic role of EPM?
In the context of businesses having to make quick, accurate and data-based decisions, EPM (Enterprise Performance Management) is not only a financial management tool, but also a strategic operating system that helps businesses link long-term vision with practical actions.
The Bridge Between Strategy and Execution
EPM helps to translate strategy into concrete actions through tightly integrated planning, budgeting and performance monitoring processes. As a result, strategic goals are not just on paper, but are reflected in quantitative indicators (KPIs), budget plans and specific activities at each department level.
Improve Organizational Communication and Coordination
One of the major challenges facing businesses is the disconnect between strategy, finance, and operations. EPM addresses this by providing a common language of performance, helping management, departments, and employees understand their roles in achieving shared goals.
Thanks to a unified reporting system and centralized data, decision-making becomes easier. transparency, coordination and reduction of information conflicts between parts.
Optimize Performance and Enhance Work Value
EPM automates many manual processes in planning, data consolidation and reporting, reducing administrative workload so that finance and planning staff can focus on analysis and strategic consulting.
This not only increases productivity, but also transforms the role of the finance department from “number keeper” to “strategic partner” of the business.
Providing Comprehensive Strategic Vision and Information
EPM helps the Board of Directors have a clear view of the goals, effectiveness and progress of the strategy implementation. The system provides clear information, updated in real time, supporting the process of planning, forecasting and variance analysis accurately.
Promoting Long-Term Thinking and Sustainable Development
EPM not only focuses on short-term results, but also encourages businesses to plan for the long term. By linking strategic goals with action plans and performance indicators, EPM helps businesses maintain a sustainable direction while flexibly adapting to market fluctuations.
What are the specific benefits of EPM?
Implementing EPM (Enterprise Performance Management) not only helps businesses improve financial performance but also brings comprehensive strategic value to the organization – from the leadership level to each employee.
Improve Work Results through Clear and Aligned Goals
EPM helps businesses set, track, and adjust targets (KPIs) that align with their overall strategy. With a centralized data system, every level – from the Board of Directors to employees – understands how their goals contribute to the overall success of the organization.
Cost Reduction and Resource Optimization
By automating planning, consolidation, and reporting processes, EPM eliminates manual, duplicate, and non-value-adding activities. Data flows seamlessly between departments, helping businesses optimally allocate resources and quickly identify areas where costs are running over budget.
Providing Information That Leads to Action
EPM integrates and analyzes data from multiple sources – financial, operations, human resources, sales – to provide a complete picture of business performance. Through visual reports and real-time dashboards, managers can identify trends, bottlenecks, and opportunities for timely action.
Promoting Personal and Organizational Development
EPM creates a transparent management environment and continuous learning through feedback, measurement, and performance-based coaching. Employees and managers can track progress, receive regular feedback, thereby improving professional competence and developing strategic thinking.
Ensuring Long-Term Competitiveness
In a volatile market, EPM helps businesses maintain a competitive advantage with a powerful and flexible information management system. By monitoring and responding quickly to changes, businesses can adjust strategies in time, forecast trends and make proactive decisions.
Distinguishing EPM From ERP and BI
While EPM (Enterprise Performance Management), ERP (Enterprise Resource Planning) and BI (Business Intelligence) are all important components in the enterprise management ecosystem, they serve different goals in the data value chain.
Understanding the difference between Enterprise Performance Management and ERP helps businesses build more effective data management and performance strategies.
EPM vs ERP: Differences in Data Nature and Goals (Mindset: Be Cheaper/Certainty)
| Criteria | EPM (Enterprise Performance Management) | ERP (Enterprise Resource Planning) |
| The nature of the data | Manage Plan and Forecast values – data oriented forward-looking | Manage Actual values – real-life transaction data backward-looking |
| Main objective | Support strategic decision making and performance optimization | Manage daily operations and transactions |
| Scope | Focus on strategy, planning, forecasting, analysis and reporting | Include accounting, purchasing, sales, warehouse, human resources, production tasks |
| Approach | Bring thinking “Be Certain” – ensure accuracy, consistency and flexibility in decision making based on aggregated data | Bring thinking “Be Cheaper” – optimize costs and operational efficiency at the transaction level |
| Relationship | EPM uses data from ERP (actuals) to enrich the context for planning, forecasting, and performance analysis | ERP is the core source of input data provide to EPM |
EPM vs Business Intelligence (BI): From Historical Analysis to Future Direction
| Criteria | EPM (Enterprise Performance Management) | BI (Business Intelligence) |
| Target | Support future planning, forecasting and decision making | Analyze and visualize historical data |
| Core question | “What should businesses do next?” | “What has the business done in the past?” |
| Nature of data use | Combine plan, forecast and actual data | Analyze actual data to draw insights |
| Main output | Scenarios, “What-if” models, rolling forecasts, budget planning | Dashboard, analytical reports, trend charts |
| Orientation | Action-oriented, Forward-looking | Observational and reflective (Descriptive, Historical) |
Top EPM Software Reviews & Sactona EPM Optimization Solution – Bizzi
After understanding the nature of EPM or in other words, what Enterprise Performance Management is, as well as comparing the concepts, let's explore more deeply some EPM software that is popular with large enterprises around the world.
International EPM Market Overview
Oracle EPM / Oracle Cloud EPM
- Outstanding advantages:
- Powerful integration in planning, budgeting, forecasting, consolidated reporting.
- Highly scalable, suitable for large/multinational enterprises.
- Automate closing and financial consolidation processes, helping to shorten reporting cycles.
- Dashboards, real-time analytics & data formats for better decision making.
- Limit:
- The cost is very high: license + implementation + customization + operation.
- High complexity: new users need a lot of time to get used to it
- The interface is not always easy to use, there is feedback about dashboards / user experience not being as good as expected.
- Integration with legacy or non-Oracle systems can be complex & costly.
- Implementation time and cost:
- Deploying an average module for a large enterprise usually takes from 9-12 months to 1-2 years, depending on complexity, number of entities, data size.
- The total cost (licenses + implementation + training + maintenance) can be very high (for large, multinational companies, it is usually tens to hundreds of thousands of USD/year).
SAP EPM / SAP
- Outstanding advantages:
- The SAP ecosystem is large, if the business has used it SAP ERP software then SAP EPM has better integration advantage.
- Strong features in cost/profitability analysis, multi-entity, multi-currency scale, international standard reports.
- Well supported planning, budgeting, consolidation, close tools, with “what-if / scenario modeling” capabilities
- Limit:
- High licensing + customization + consulting costs, especially at large scale.
- Long deployment, many scope changes (scope creep), high dependency on IT / deployment consultant.
- High requirements for clean data, governance / master data, user training. Otherwise, the system is prone to stagnation.
- Less flexibility in some modules if heavy customization is required and if outside the standard SAP ecosystem.
- Implementation time and cost:
- Typically, SAP EPM (or SAP BPC) implementation for medium-large enterprises takes 6-12 months for finance + planning, and can take up to 1-2 years if integrating more broadly with multiple units, currencies, and back-end systems.
In general, from market surveys and feedback, businesses will often encounter some difficulties when using Oracle, SAP, Anaplan or large EPM solutions in general such as:
- High cost, big investment
- Long implementation time
- Dependent on external IT/consultant team
- Difficulty in adapting & changing
- High total cost of ownership (TCO) (implementation costs, licensing costs, extensions, maintenance, training, user support, version upgrades)
Sactona – The Optimal EPM Solution For CFOs and FP&A in Vietnam
Sactona offers Enterprise Performance Management (EPM) solutions that help businesses make decisions faster – more accurately – and more economically.
- Eliminates the large investment cost barrier of traditional EPM systems like Oracle or SAP.
- Dramatically reduce go-live time — from 12–18 months to just 3–4 months thanks to flexible deployment model and ready-made modules.
- Allows finance teams to autonomously operate and adjust models without deep intervention from the technical team.
Sactona's distinct competitive advantages:
| Properties | Description & Value Created |
| Excel-based UI – Familiar, easy-to-use interface | Sactona inherits the familiar interface and operations of Excel, making it easy for finance staff to build, analyze, and report without writing code or requiring IT intervention.
→ Reduce 70% system familiarization time, shorten planning cycle. |
| Fast deployment, clear ROI | The average implementation time is only 3–4 months, 3–5 times faster than international EPM platforms.
→ Helps businesses see results and ROI within the same fiscal year, instead of having to wait 1–2 years. |
| Familiar interface, easy to get used to and use | The system is as user-friendly as Excel and suitable for the characteristics of Vietnamese businesses, ready to meet modern financial challenges.
→ Ensuring both international management standards and local operational realities. |
| Seamless integration with Bizzi and existing ERP systems | Easily sync data from ERP, accounting systems, or Bizzi solutions for more accurate consolidation, reconciliation, and forecasting.
→ Build a closed-loop EPM model – where planning, forecasting, and actual data are tightly connected. |
Case Study of successful implementation of Sactona
Large corporations such as Panasonic and LIXIL have applied Sactona in financial management and achieved specific results:
| Business | Outstanding results | Impact on the organization |
| Panasonic |
|
CFOs can update scenarios monthly and make decisions based on actual data rather than estimates. |
| LIXIL Group (Japan) |
|
Enhance financial transparency and coordination among national branches. |
| Monex Group |
|
Monex's finance team has transformed from a Reporter luxurious business advisor, reflects the true spirit Modern EPM – where finance becomes the center of strategic decision-making for the business. |
In short, Sactona is more than just software – it is a platform that helps finance teams move from “data management” to “performance management”. With Sactona, finance teams don’t need to be IT experts – they just need to be data savvy.” Sactona brings a new generation of EPM where speed of implementation, cost efficiency and financial autonomy are paramount.
What is Enterprise Performance Management? Frequently Asked Questions What is Enterprise Performance Management?
Below is a collection of related questions intended to provide information and avoid confusion. mistakes in EPM implementation in business
Do small and medium enterprises (SMEs) need to implement EPM?
EPM is a comprehensive performance management platform that helps businesses connect strategy – budget – forecast – operational efficiency in a unified system. However, comprehensive EPM implementation usually more suitable for medium and large enterprises, where there is:
- Multiple business units or subsidiaries (multi-entity).
- The planning and forecasting process is complex, requiring the consolidation of financial data from multiple sources.
- The need for performance analysis and scenario simulation (“what-if” scenarios) to support rapid decision making.
For small businesses, it can be Start by standardizing your financial management processes, using flexible solutions such as Bizzi or Sactona modular to gradually upgrade to a full EPM system as scale increases.
What factors determine the choice of suitable EPM software?
When choosing an EPM platform, CFOs and executives need to consider balance between technology – process – organizational capacity.
Specifically, the 5 most important factors include:
| Element | Meaning | Guiding questions |
| 1. Business complexity | Organizational size, number of subsidiaries, markets, currencies, reporting structure. | Does the current system support data consolidation and multidimensional reporting? |
| 2. Purpose of using EPM | Focus on planning and forecasting, or move towards comprehensive strategic management. | Does your business want EPM to help with budget management, performance analysis, or strategic decision making? |
| 3. Ability to integrate existing systems | EPM needs to be tightly connected to ERP, accounting, CRM, HRM, or BI analytics tools. | Does the current system have a compatible API or data standard for integration? |
| 4. Degree of autonomy of the financial team | Consider between systems that require IT support (like Oracle, SAP) and financial user-friendly platforms (like Sactona). | Can the FP&A team operate the system without relying on IT? |
| 5. Cost and implementation time | Consider ROI, go-live time, and long-term operating costs. | Can the system be financially viable within 6–12 months? |
Conclude
It can be seen that EPM brings benefits far beyond the financial scope – it helps businesses focus, be efficient, transparent and develop continuously. Grasp the essence What is Enterprise Performance Management and how it contributes to success? When implemented, EPM not only supports financial operations, but also becomes a strategic tool to help businesses accelerate growth and maintain long-term competitive advantages.
Hopefully the above article has provided sufficient information to help leaders understand the nature of EPM or, in other words, what enterprise performance management is.
It’s time for businesses to step out of the confines of manual Excel spreadsheets and harness the power of data. Combine your existing ERP system with Sactona – Bizzi EPM solution to:
- Completely eliminate reliance on Excel, reduce errors, and save hundreds of hours of manual processing.
- Upgrade FP&A capabilities, enabling finance teams to focus on strategic analysis rather than mechanical data entry.
- Increase decision-making speed and accuracy through real-time forecasting, scenario simulation, and financial analysis.
In the data era, CFOs are not just cost controllers, but also business value architects – leaders of data-driven strategies. And Sactona – an EPM solution developed by Outlook Consulting, exclusively distributed by Bizzi in Vietnam – is the modern CFO’s trusted assistant.
Registration here to experience the solution to see the real dashboard, discover how Sactona operates smartly and optimizes financial performance!