News
6 tough questions to ask your EPM vendor
4th October 2007 > ComputingSA
Enterprise performance management (EPM) technology today extends the power of performance management across the enterprise, helping companies align their corporate strategy to core business processes and results.
But EPM success depends on several factors. Adrian van der Merwe, MD of 8th Man Consulting, suggests you ask your vendor the following questions:
1. What is the track record of your EPM offering?
EPM is not a tool, nor is it about achieving higher performance through installing technology-centric solutions. The real value of EPM is that it enables the development of consistent, actionable decision-making processes, while breaking down internal barriers to improving the financial and operational performance of the organisation as a whole.
Ask the vendor if it has implemented EPM systems for large corporates - organisations with many millions of rands in annual turnover. Can they demonstrate that these implementations have transformed complex organisations by enabling them to align and measure individual and group behaviour against high-level strategy and corporate goals? Can the vendor prove that it has paved the way for enhanced efficiencies, strategic changes and enterprise-wide value add?
2. Who are your clients and are they referenceable?
Does the vendor have satisfied clients with sites that are referenceable on request? What experience does it have with various aspects of EPM implementations? A rich source of referenceable customer implementations is the ultimate indication of the vendor’s expertise and commitment to ensuring a smooth, cost-effective implementation that adds value to the organisation.
3. Do you have sufficient people to implement the offering? What is your track record, and does it lean to the business or technical side?
Cross-functional skills are key. Does the vendor have a highly diversified team that comprises both business knowledge and technology skills, with members who come from accounting and IT backgrounds, for example? This is a fundamental characteristic of any EPM vendor that can offer a complete business solution.
4. Does the team demonstrate extensive experience in EPM implementation, enabling it to understand a client’s business processes and know what it is aiming to achieve?
Is it committed to understanding, evaluating and streamlining a company’s existing business processes? This exercise must include: assessing a company’s unique structure, standardising management processes, reinforcing a common performance language, and placing value on data quality and integrity.
5. What is your approach to EPM implementations?
EPM is about designing and implementing pervasive systems that touch all the right groups and integrate the most meaningful processes. As a result, a methodical approach is required, beginning with the development of a comprehensive understanding of the clients’ business requirements and then applying EPM best practices.
6. How would you facilitate the knowledge transfer to us, the client?
It is vital for the EPM vendor to work with the client as much as possible. Dedicated resources from the client enable the facilitation of knowledge transfer through working together closely. Ensure that your vendor commits to documenting the entire EPM roll-out and providing you, the client, with all supporting documentation. It is the duty of the vendor to ascertain that the client is fully conversant with the solution at the time of hand-over.
