CPM, Best-of-breed or Self-developed?
It can be hard to navigate amongst all of the different types of solutions that manage budgeting, forecasting and planning. Should you choose an IT-companys self-developed system, a Corporate Performande Management system (CPM) or a best-of-breed?
In this article, we will go through all three of these systems and which one we view as the best option.
Self-developed IT Systems
There are many different reasons why IT consultancy companies develop their own tool or system for budgeting and forecasting. What’s important to remember if you’re thinking about investing in one of these systems is that most IT consultancies has their own purpose with their self-developed system that weighs heavier than anything else – to make their consulting business grow.
An IT consultancy business primary purpose is to deliver consulting services and thus, this will always be prioritized above unpaid research and development (R&D). This means that very few of the consultancies that have their own system will put in enough time and recourses to further develop and optimize the product. This often makes the implementation process and management of the product inefficient and time-consuming.
A little cynically, it can be said that for a consulting company it can be rather positive if the implementation takes 10 hours longer, instead of spending 200 to 300 hours more on R&D.
”We solve everything” – CPM
A ”we solve everything” system, or CPM, should be able to manage follow-up and analysis, as well as budget, forecast and operative planning in the best possible way. But, delivering a stable and flexible solution when trying to do everything is something which, at least the current, CPM systems have a hard time living up to.
We firmly believe that no one can be the best at everything.
There are many innovative platforms that has a 100% focus on follow-up and analysis, such as Microsoft Power BI®, Qlik® and Tableau®. Their focus is to create the best business intelligence and analytics platforms, which has enabled them to develop unbeatable features and made their businesses leading within their field. Their platforms for follow-up, reporting and analysis offer features and customer value that the CPM systems are nowhere near.
For a product company and pure best-of-breed systems, there is no intrinsic value in creating consulting hours. The scalability and opportunity for growth lies in developing a product that requires as little implementation and management as possible. Together with their partners, these companies want to deliver as much value as possible, in as short a time as possible, to as many customers as possible.
The thing you should ask yourself prior to a system change is what will create the most value for the company.
We are convinced that a products greatest focus should be to create concrete customer value and simplify for businesses, which makes best-of-breed systems with effective and seamless integrations the best possible solution.
The Best of Two Worlds
With the information above in mind, Planacy has chosen a strategy where we focus 100% on financial and operative planning.
Just like Microsoft Power BI, Qlik and Tableau, our focus has always been to develop an innovative and powerful planning platform with features that self-developed IT-systems and CPM systems can’t compete with. With a unique database and configurability – and of course seamless integrations to the markets leading business intelligence systems – we have created a cohesive solution. In this way, we can offer our customers the best of two worlds: best-of-breed budget, forecast and planning, as well as seamless integrations to best-of-breed business intelligence.
Please feel free to contact me or one of my colleagues if you’d like to know more! You can also read more about the BI-tools Planacy can be integrated with here.