by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"
There are many software products that claim to support CPM, but often they only support some aspects, for example, financial planning, and reporting. One of the issues is that the term CPM is synonymous with budgeting, forecasting and management reporting which by itself cannot provide a complete solution.
Similarly, some vendors have multiple products covering different parts of CPM. For example, many have a scorecard application that they deem suitable for strategy management; a separate solution for collecting budgets and forecasts; and yet another for reporting and analysis. In the context of this framework, these multiple solutions can only work if they are truly integrated and can be made to operate as a single system. Without this level of the integration, system maintenance becomes an unbearable nightmare that cannot suitably adapt to the dynamics of the economic environment.
This article gives an overview of 9 key areas that should be considered for the overall evaluation of CPM/ FP&A system.