Enterprise Performance Management (EPM) and Business Intelligence (BI) are key tools supporting inventory planning and control. Typically, BI deals with data analysis, reporting, and historical trends to inform decision-making.
On the other hand, EPM is more strategic, aligning operational performance with business objectives and providing forecasting and budgeting insights.
Choosing the right tool depends on organizational needs. Let’s take a look.
What is EPM?
EPM is not just software; it is also an overarching process of measuring a business’s financial and operational status with the aim of improving it over time. This system supports the process by integrating data and insights from across the enterprise.
These include enterprise resource planning (ERP), human capital management (HCM), customer relationship management (CRM), ecommerce, and data warehouses.
Financial and operations leaders trust this system. EPM solutions empower users to frame business plans and monitor results against business goals and forecasts, identifying patterns and trends.
EPM Vendors for Inventory Planning and Control
Here are some notable Enterprise Performance Management (EPM) vendors:
- Oracle
- SAP
- IBM
- Anaplan
- Workday
Most EPM platforms also incorporate Business Intelligence (BI) functionality, featuring various reporting tools, dashboards, and documentation features to support comprehensive performance insights.
Now, let’s see what the software BI is and how it works.
What is BI?
Business Intelligence (BI) powers Enterprise Performance Management (EPM) with the data and analytics essential for decision-making. BI tools are crafted for data analysis, manipulation, and reporting, supporting various business functions—including inventory planning and control.
Most EPM systems either integrate with or are built upon insights generated by BI software. BI collects and organises data from multiple sources, analyses it within a business context, and delivers insights through user-friendly formats like dashboards, reports, visualisations, and maps.
Popular BI Tools
Here are some popular Business Intelligence (BI) tools:
- Power BI
- Oracle Analytics Cloud
- MicroStrategy
- Spotfire
- SAS Visual Analytics
So, which one comes first in the “EPM BI” partnership?
BI or EPM: Which One is First in Inventory Planning and Control
Both of these software were designed to aid companies in understanding business performance. Bi takes a wide approach to business functions. For instance, a marketing team can use Bu data to create customer segments or personas, while HR can be used to analyse employee engagement.
On the other hand, an EPM system focuses on financial and operational planning and monitoring. BI serves as the basis of EPM.
Here’s a few more pointers of difference:
- BI software gathers and contextualises raw data from internal and external sources.
- It provides insights on business performance and improvement opportunities.
- BI lacks tools for strategic planning and forecasting.
- EPM systems leverage BI data for comprehensive EPM processes, including strategic planning.
So, which one fares better than the other?
EPM Vs BI: The Better Tool for Inventory Planning and Control
Enterprise Performance Management (EPM) and Business Intelligence (BI) are both valuable for inventory planning and control, but each serves unique functions:
BI Strengths: BI excels in data analysis and reporting, allowing businesses to track inventory trends, manage data from multiple sources, and generate insights through dashboards and visualisations. This helps identify patterns and supports informed decision-making.
EPM Advantages: EPM integrates planning, budgeting, and forecasting capabilities, aligning inventory strategies with broader business goals. It enables proactive inventory management by predicting demand and optimising resources.
How about you choose both for your inventory planning and control needs?
When companies have both these smart and efficient business intelligence solutions, they can use both to streamline their work efficiency. Here’s how they can do it.
How EPM and BI Can Work Together for Inventory Planning and Control
Businesses will see the most value when they integrate EPM and BI. BI can gather data, analyse trends and track crucial KPIs. You can use it broadly across the business for various cases.
BI, as standalone software, does not help leaders plan strategic actions/ but when you integrate EPM into BU, you can give business leaders relevant data and insights to plan and improve performance. So, here are the few advantages of integrating the two of them.
6 Benefits of EPM and BI Together
Look at all the strategic actions you can take when you combine the two tools:
1. Data Collection and Integration
BI software collects data and integrates them into the systems, including internal ERP and CRM systems, as well as data from partners, suppliers, and more. Without this step, you cannot do any analysis. An EPM solution can integrate the data and help businesses to make informed decisions.
2. Enhanced Analysis
EPM with BI allows more enhanced analysis of the data from business performance. These two solutions offer you an enterprise-level view of how the business performs. This allows you to give more agile forecasting. Not just that, you can respond faster and make effective changes, analysing dimensions of cost and profitability while aiming to boost your business.
3. Informed Strategic Planning
Before EPM systems, finance and operations leaders struggled with disconnected systems for planning, budgeting, forecasting, and reporting. Today, BI tools analyze both historical and current data from across the company, providing insights into operations and trends.
EPM builds on these insights by integrating performance metrics, financial planning, and forecasting to align with strategic goals. While companies can piece together EPM functions using multiple tools, a unified EPM system brings clear value.
Notably, 82% of finance leaders in Oracle’s 2022 “Value of EPM Report” preferred a single-vendor EPM solution.
4. Performance Monitoring and Reporting
Performance monitoring and reporting form the backbone of EPM. EPM systems support continuous cycles of planning, monitoring, analyzing, and adjusting performance. Defining key performance indicators (KPIs) and using BI for real-time data on these KPIs helps businesses stay aligned with goals and track progress effectively.
Let’s see two more advantages of inventory planning and control.
5. Enhanced Forecasting
A financial forecast showcases how the business will perform in the future period. EPM and BI collaborate to enhance this forecasting using the analytical tools from BI to assess the historical data and current financial data.
EPM integrates the forecasting models’ probable scenarios and performance metrics. Companies can now make a future projection and assumption of what the financial outcomes might look like.
6. Operational Efficiency
Last but not least, EPM also helps to communicate all the goals to the stakeholders. This allows improved performance across the business. When everyone is on the same page it ensures that all follow the EPM allows them to integrate the objectives into the pains and budgets of various departments and business factions.
This makes it a very efficient approach even if the department plans its actions and business independently. When you integrate BI into an EPM system, everyone is working based on the same data and real-time analysis.
FAQs: EPM Vs BI: The Better Tool for Inventory Planning and Control
What are the benefits of business intelligence solutions?
BI solutions provide data-driven insights, improve decision-making, enhance efficiency, and identify growth opportunities.
What is EPM methodology?
This method integrates planning, budgeting, forecasting, and performance analysis to align operational activities with strategic goals.
How can BI tools help inventory management?
BI tools analyse inventory data, track trends, optimise stock levels, and improve demand forecasting for efficient inventory management.
Conclusion
Integrating Enterprise Performance Management (EPM) and Business Intelligence (BI) offers businesses a powerful approach to inventory planning and control. Together, they enhance data analysis, strategic planning, and operational efficiency. By leveraging insights from both tools, organization’s can optimize inventory management and achieve better alignment with business goals. For tailored solutions that meet your specific needs, visit Qodenext to learn more.
