Oracle & Quocirca report shows that businesses are acknowledging the role of finance in monitoring performance across all operations.
Calculated on a scale of 0 to 10, the overall Index for all of the surveyed countries has leaped 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 organizations and all verticals.
Oracle attributes this rise in confidence about enterprise performance management to the global economic situation. The first EPM Index was conducted in January 2009 as businesses grappled with the deteriorating economic outlook. The consequent assessment of operational efficiency highlighted the lack of integration and the poor quality of information exchange between key business functions.
Rather than signifying any material improvements, the stronger performance in Oracle EPM Index II reveals that the majority of businesses now feel more confident about their ability to address these shortcomings.
As with the first report, the research for Oracle EPM Index II asked 800 business decision makers in Europe and North America to rank their organizations 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.
“Finance departments have spent 2009 fixing broken processes and information flows. The findings from Oracle EPM Index II reveal that businesses now understand better that key management performance processes need to be integrated, ” Frank Buytendijk, vice president and fellow of EPM at Oracle commented. (BBJ Online)