The global corporate performance management (CPM) market is likely to exhibit significant growth in the coming years. Increasing need for minimizing operational costs and ensuring transparency related to business strategy among all employees can boost the growth of the market. Additionally, companies are adopting CPM solutions for improving performance by focusing more on core business. These solutions will also enable them to fulfill regulatory compliance and enhance security. Applications help to transform captivated information into operation tactics. It can also help with control and planning cycle along with customer relationship optimization requirements.
Soaring need for better financial planning process is playing a pivotal role in the growth of the market. CPM is also acknowledged as business performance management or enterprise performance management (EPM) tool. It involves business intelligence along with management and monitoring enterprise performance in important aspects related to operational cost, revenue, and return on investment (ROI). It consists of functions related to planning, budgeting, and forecasting. CPM solutions are commonly implemented for better and quicker budgeting or financial reporting in case of financial performance management tools. However, various other applications have evolved significantly over the years.
These solutions also include a wide range of applications such as labor scheduling and budgeting, workforce analytics, and managing attendance and time, absence or leave, and task and activity. However, surging demand for complete management tools along with influx of mobile ready applications is poised to drive the market. For instance, Kronos Incorporated developed a solution called Kronos absence management solution, which can be easily deployed and managed through cloud technology. This automated solution streamlines complex labor laws and helps reduce various tasks such as late arrivals, vacation time, and manage sick time. It also provides reliable data related to labor issues. These tools are designed to identify problem areas such that operational executives are able to take appropriate action.
Recent developments in IT and cloud services has changed the scenario of the overall industry. Upgradation in capacity and performance, adoption of software-define networking (SDN), and virtualization are further bolstering the demand for advanced solutions. Advancements in cloud-based corporate performance management are projected to open new avenues for players in the corporate performance management market. Organizations are increasingly preferring cloud and software-as-a-service (SaaS) based solutions over on-premise deployment options as they offer several benefits such as ease of operations, flexibility, and cost-effectiveness.
High penetration of mobile devices is also anticipated to fuel the demand for cloud-based applications in the coming years. For instance, Vena Solutions, a cloud-based CPM software provider, launched its latest product with more than 40 feature improvements. These features can be useful for business administrators and other users in day-to-day operations. The company has also declared its integration with Microsoft Office 365. It will allow users to quickly access their information in full online or mobile experience. This solution is intended to help organizations save time and cost and optimize resources with several key features including template automation, due date email notifications, and mobile support.
However, complexity and high initial cost involved in implementation of these solutions can hamper the growth of the market. CPM involves several complex operational procedures that increase the overall cost of implementation. Installation of these solutions requires skilled professionals, which can act as a restrain in regions where there is a dearth of them. In addition, these solutions need to be updated frequently to track changes in rapidly changing environment.
North America has been one of the attractive markets due to rapid technological advancements and high adoption of CPM solutions to improve finance function in companies. Soaring need to improve transparency in financial transactions is estimated to spur the growth of the regional market in the coming years. Regions such as Asia Pacific and Europe are expected to show noteworthy growth in near future. This can be attributed to rising number of enterprises in these regions.
Some of the prominent companies operating in the global corporate performance management market are Oracle Corporation, SAP SE, Adaptive Insights, VisualCue Technologies, EcoSys Management LLC, and Sightline Systems.
