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Business intelligence and Corporate Performance Management are very closely intertwined, and understanding the differences between the two is essential in choosing the correct option for businesses.
FREMONT, CA: One of the keys to success is understanding how effective business processes are. It is not just the ones that revolve around the main revenue stream, but every single one of the processes, from recruiting to marketing to supply chain management. To gain insights into the performance of these processes, businesses use two types of software, Corporate Performance Management (CPM) and business intelligence (BI). Here is more about what differentiates CPM from BI. So, here is an exploration that will be helpful for enterprises.
BI is used to easily access, analyze, and report on data important to an enterprise. While CPM is broader and involves the processes, methodologies, metrics, and software tools to monitor, measure, and manage a business. BI is a vital software component of a complete CPM solution. Many organizations invest in BI before deciding when to deploy CPM. They use BI to understand what metrics and KPIs are needed to their business. With these sound principles, they will have a better understanding of what additional tools and functions are required to put together the CPM system.
They are creating reports, and data management is where the similarities between BI and CPM stop. There are vital differences between the two that should make it easy to keep them straight. Although both software play a vital role in decision-making, they are entirely separate ones. While Business Intelligence helps firms decide what decisions to make, CPM monitors the progress based on those decisions. BI uses advanced analytics to find trends in the data, and it places significant weight on the potential to investigate data through exploration, drill-down, and other tools.
CPM takes the reins after the analysis to monitor the progress towards those objectives. After defining specific KPIs and performance metrics, CPM software helps an organization see how close or how far away they are to reaching those goals. Planning, forecasting, and budgeting features assist in creating a timeline for achieving them. Firms can then use a CPM to check if they are keeping up with that timeline. If firms are not, they can use it to help find out why they are falling behind and fix the problem until reaching the goal.