5 reasons to choose an EPM platform

5 reasons to choose an EPM platform

Many organizations are increasingly recognizing that processes such as Statutory Consolidation, Tax Reporting, Management Reporting and Financial Planning & Forecasting are directly linked and can therefore be approached as such. Therefore, when considering a new EPM solution, the question frequently arises as to whether an EPM platform or a "best of breed" strategy (the best point solution for each process) is the right one.

The arguments for choosing an EPM platform solution that are much emphasized:

1. One supplier for multiple solutions

Sounds like a pleasant approach from IT and Procurement. After all, you only have to negotiate and make agreements with one party, and from IT architecture monitoring, it also seems more manageable and manageable. The downside of this approach is the risk of "vendor lock-in. Nobody wants to be held hostage by a vendor on whom you have become too dependent.

2. One product instead of multiple separate solutions is more efficient

Of course, this is an argument that, if true, certainly speaks for a platform solution. But although on the outside it often looks like one product, in recent years we have seen that it is actually several modules. Sometimes even multiple products under "the hood" with different data models or architectures. Less visible for end users, but sometimes a real challenge for administrators. The motto is to ask questions and look under the hood when in doubt.

3. Seamless integration and one-time data storage

A key argument for an integrated platform solution is fewer data issues. But even with solutions consisting of a single architecture, you often have to deal with different data models (in the case of multiple modules or cubes). Between those data models, you also need to integrate again. That requires clarity about use of definitions, workflow and process management across those different data models. EPM Platforms often have thought this through. As you can imagine, it gets completely complex when you have to start connecting separate applications and toolsets.

4. One total solution is cheaper to purchase

This sounds like an open door, of course. Of course, a time-honored purchasing law often applies here: volume purchasing drives down the unit price. But beware! Many solutions today use user-based pricing. In other words, you pay per user. And if you use multiple processes, each with its own user group, the overlap in users is often not large, so that volume purchasing advantage seems to evaporate compared to the separate point solutions.

5. An EPM platform is more efficient in maintenance.

The big advantage of a platform solution is that you often deal with a single point of contact within your management organization. This is of course cheaper than having several administrators spread throughout the organization. Data integration is also easier to organize than with separate suppliers. Only the ownership of the solution is sometimes the subject of considerable debate. Is it Finance and Accounting, Corporate or Business Control? Who monitors the design of the solution and how do you organize the changes? Then everyone has their own point solution.

As you can see, there are certainly arguments to be made for using an EPM platform solution. But there are at least as many for a Best of Breed approach.

Selecting is customized and requires skill

Which arguments apply to your situation depends on several factors. Think about: which choices have been made in the past, so which legacy needs to be taken into account? How complex are the requirements of the various processes and do you want to cover them in one environment or is it more logical to go for the 'best fit' per process? What are future (IT) architectures to consider?

There are obviously many questions that need to be answered when you are faced with the consideration of choosing a new EPM solution. That is why it is essential to tackle this process carefully and thoroughly. Having the intern do a little market research and ask for some demos is really not enough. These are crucial business processes and the choices made can have an impact for years to come. You should therefore let a party that knows the market, that can support you in obtaining the requirements and that can guide you in the direction of the solution that best suits your needs guide you. Finext is such a party.

And whether it will be a platform or a "best of breed strategy" we will determine together afterwards!