EPM (Enterprise Performance Management): What it is and how it helps modern businesses

In an era and environment where businesses are required to operate with speed, accuracy and transparency, simply recording data is not enough. Numbers and data must be transformed into knowledge that is taken into account to make strategic decisions.

In this context, EPM (Enterprise Performance Management) or in Greek “διακέριση Επιχερισίας Απόδοσης”, is gaining more and more value and importance. But what is EPM?

What is Enterprise Performance Management?

Enterprise Performance Management, EPM for short, is a set of processes, methodologies and tools that help businesses plan, monitor and improve their business performance, always in alignment with their strategic goals. Of course, internal and external factors that influence their future course are always taken into account.

Through EPM, businesses have the ability to transform their business plans into measurable results, leveraging data from different departments and systems.

This approach allows for continuous performance evaluation, early identification of deviations and decision-making based on real data.

In practice, EPM covers functions such as strategic planning, budgeting, forecasts, data analysis and monitoring of performance indicators (KPIs), offering a single and reliable picture of the overall state of the business.

What are the main benefits of EPM systems for businesses

The adoption of an Enterprise Performance Management (EPM) system offers businesses the opportunity to gain better control of their performance and to more effectively support their strategic planning.

Improved strategic planning

EPM systems help businesses link their strategy to measurable goals and performance indicators, allowing for systematic monitoring of progress and timely adaptation of the strategy when conditions change.

More accurate budgeting and forecasting

By leveraging historical data and scenarios, EPM tools enhance the accuracy of budgeting and forecasting, reducing uncertainty and supporting better financial planning.

A single and reliable view of performance

EPM systems aggregate data from different departments and systems, providing a comprehensive view of business performance and reducing fragmented information.

Supporting informed decision-making

Access to reliable data, analytics and reports allows executives to make decisions based on facts and not assumptions.

Increased transparency and control

Systematic monitoring of performance indicators and deviations enhances transparency, facilitates internal control and contributes to compliance with regulatory and operational requirements.

How EPM systems work in practice

In practice, Enterprise Performance Management (EPM) systems function as a central point for collecting, analyzing and utilizing data from different departments and information systems of the company.

Initially, EPM systems collect data from sources such as ERP, CRM or other business tools, ensuring the consistency and reliability of the information.

Subsequently, this data is used to create budgets, forecasts, scenarios and reports, allowing executives to evaluate performance in real or near real time.

Through dashboards and performance indicators (KPIs), companies can monitor their progress against their goals, identify deviations and make timely corrective decisions.

At the same time, modern EPM systems support collaboration between teams, ensuring that all those involved work with common, up-to-date data.

The Rise of EPM Systems and the Shift to the Cloud

In recent years, the adoption of Enterprise Performance Management (EPM) systems has shown a steady increase, as businesses increasingly emphasize smart financial planning and data-driven decision-making.

At the same time, there is a clear shift towards Cloud-based EPM solutions, which offer greater flexibility, faster access to reliable data, and reduced infrastructure costs.

Unlike traditional on-premises solutions or tools such as spreadsheets, modern EPM systems in the Cloud support the scaling of business needs and collaboration between different teams.

This shift reflects a broader change in the way finance departments operate.

Finance executives are gradually abandoning fragmented and manual tools, choosing flexible, cloud-based platforms that enhance transparency, improve forecast accuracy, and support digital transformation initiatives.

Differences Between EPM, FP&A, and ERP Systems

Although EPM, FP&A, and ERP systems are directly related to financial and business planning, they serve different roles within the enterprise.

Each one addresses distinct needs, focusing on either overall performance, financial analysis, or day-to-day operations management.

The differences between EPM and FP&A (Financial Planning & Analysis)

FP&A (Financial Planning & Analysis) is a core function of financial departments and focuses exclusively on the financial performance of the company.

It includes activities such as budgeting, financial forecasts, variance analysis and financial reporting, with the aim of supporting decisions regarding financial figures.

EPM, on the other hand, has a broader scope. It is not limited to financial analysis alone, but integrates data and indicators from different parts of the company, linking financial results to overall strategy and operational performance.

In simple terms, FP&A can be considered a subset of EPM, as it covers the part of financial planning and analysis, while EPM provides the overall framework for evaluating and improving operational performance at an organizational level.

The differences between EPM and ERP

The main difference between EPM and ERP concerns the purpose that each system serves within the company. ERP (Enterprise Resource Planning) systems operate as a system of record, collecting and consolidating data from key business functions, such as finance, human resources, procurement and project management.

Their goal is the smooth execution and control of daily processes. In contrast, EPM systems utilize this data to provide performance analysis, strategic planning, reporting and forecasting.

They do not replace ERP systems, but function complementary, transforming the recorded data into insight that supports decision-making and long-term planning.

In practice, companies that utilize ERP and EPM in combination obtain both reliable data and a meaningful picture of their performance, enhancing transparency, alignment with objectives and overall operational effectiveness.

Enterprise Performance Management (EPM) is now a key pillar for modern businesses seeking better control of their performance and more substantial support for strategic planning. By connecting data, goals and decisions, EPM systems help businesses move with greater accuracy, transparency and flexibility in a constantly changing business environment.

At Hubin, the approach to Enterprise Performance Management is based on the creation of a single and reliable data ecosystem. Through an integrated enterprise platform that combines ERP systems, WMS/MES systems and Retail operations, businesses gain the ability to unify their data and effectively support performance control and strategic planning.

When business information is on a common basis and flows without fragmentation, EPM ceases to be a theory and becomes a tool for effective decision-making.