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"A lot of companies don't have the formally defined processes or a common set of metrics across the organization," adds Kevin McAuliffe, director of strategy and business performance management for the software group at IBM.
Building on a Solid Foundation
Typically, a CPM deployment builds on existing data repositories, data integration efforts, and departmental systems such as ERP, CRM, and SCM. "CPM is not a revolutionary way to reinvent your technology infrastructure," says John Colbert, vice president of service management at BPM Partners.
Instead, it usually overlays those systems and is used for gathering information across them by breaking organizational silos, says John O'Rourke, senior director of product marketing at BI provider Hyperion.
"Organizations have done a great job and siloed information. CPM takes advantage of all of these," BPM Partners' Colbert adds.
To consider a CPM deployment, organizations that haven't completed at least basic integration of key financial and operations data need to build those systems first, identifying the key data, what it means, where it resides, and how to access it. "The majority of companies have the data somewhere," Colbert says. "But the ones with financial systems and transactional systems in place are the ones that can take advantage of it."
For most others, performance data tends to exist in individuals' Excel spreadsheets, notes Mike Rost, director of product marketing at ERP provider Lawson Software.
To deploy CPM, organizations need some sort of central data repository -- one or more data warehouses, data marts, cubes, or databases with a common data architecture -- that can be used as a trusted, audited source of truth, Rost says. That's not to say that all the data must reside in one data store. Regardless, companies must know where key, validated data is and that the relevant, agreed-on metadata, business rules, and metrics are accessible to the CPM system. (Companies also have to have already integrated all or much of that data; otherwise, they won't know whether what they have is relevant, let alone accessible, Colbert notes.)