Business Performance Management, a new market
Business performance management (BPM) market offers an integrated solution approach consisting of Web-based analytical applications
providing key performance indicators (KPIs) that can be tiered and distributed within the enterprise; business plans that are
intended to achieve KPI values; and actual reporting and forecasting linked to KPIs, according to MetaGroup.
According to the analysts, as the market becomes more demanding, there will be consolidation of requirements around management and financial reporting (including regulatory consolidations). A key driver in this
consolidation is regulatory compliance/corporate governance, as firms seek to improve visibility and internal accountability. Robust BPM solutions should be considered for both internal performance management initiatives and support of
visibility/transparency requirements for regulatory compliance (e.g., Sarbanes-Oxley).
"Although the BPM market grew at least 10%-15% in 2003 to approximately $1.1B, this was primarily from more penetration of
planning/budgeting solutions and replacements of reporting platforms, not from compliance-driven sales," said John Van
Decker, vice president with META Group's Technology Research Services and lead author of the report. "This will change by
3Q04, as firms seek to optimise internal financial processes to support compliance. During 2004, BPM will grow 15%-20% as firms
utilise BPM for both compliance activities and internal process management."
The best approach for a BPM initiative is to evaluate integrated suites from business intelligence vendors, financial analytic vendors, and ERP vendors. Many BPM vendors have application linkages to numerous ERP suites, because they must be
ERP-agnostic to play in this space. When evaluating solutions, firms must consider the following criteria: financial reporting, financial consolidation, localisation, ERP integration, support for dynamic planning/budgeting, business modeling, visibility
through dashboards/scorecards, distributed access via portals, usability, and technical architecture.
Key Findings and Guidance
The Business Performance Management report evaluated 13 vendors. The analysis found:
Leaders have invested significantly in establishing a product and portraying a vision of an integrated BPM solution. They also have firmly established partnerships with leading system integrators, which are often required to implement the
solutions.
Challengers have mature solution frameworks, but could benefit from more integration as well as more partnerships with
systems integrators. Many of these vendors have multiple components of BPM and seek partnerships for additional
modules.
Followers are generally emerging solution providers -- they often do not have the investment potential to increase brand
awareness and enhance their solutions.
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