THE EVOLUTION OF ENTERPRISE PERFORMANCE MANAGEMENT: BRIDGING FINANCIAL PLANNING AND STRATEGIC DECISION-MAKING

Abstract

This article explores the transformative journey of Enterprise Performance Management (EPM) systems from their origins as basic financial reporting tools to their current status as sophisticated platforms integrating financial planning with strategic decision-making. It traces the historical evolution of EPM, highlighting the limitations of early systems and the technological advancements that have revolutionized the field. The article examines how modern EPM systems, empowered by cloud computing, artificial intelligence, and big data analytics, have transcended traditional financial reporting to offer dynamic, real-time financial modeling and holistic performance management. It discusses the integration of financial and non-financial data, the alignment of financial planning with long-term organizational goals, and the enhanced strategic decision-making capabilities enabled by these advanced systems. The article also delves into emerging trends shaping the future of EPM, such as predictive analytics and machine learning in forecasting, and their potential impact on organizational decision-making processes. Through a comprehensive analysis of EPM's evolution, current capabilities, and future trajectory, this paper underscores the critical role of EPM systems as strategic assets in driving business success within today's dynamic and competitive global marketplace.