The Hackett Group: New Enterprise Performance Management Software Provider Study Finds Modern Cloud-Based Software Delivers Far Greater Value Realization Than Legacy Systems
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Insights
The integration of artificial intelligence (AI) into enterprise performance management (EPM) software represents a significant shift in the tools available for business decision-making. As organizations increasingly demand more efficient and insightful data analysis, AI's role in enhancing productivity and providing actionable insights is becoming more pronounced. The research indicates a growing customer need for cost-effective solutions that also enable agility in responding to market changes.
From a market perspective, the distinction between 'Digital World Class' and other classifications reflects a competitive landscape where innovation and value realization are key differentiators. The mention of a 55% increase in time spent analyzing information as opposed to compiling data, improved forecast accuracy and significant cost advantages for companies using top-tier EPM software underlines the potential for operational efficiency gains. This could lead to market advantages for companies that adopt these technologies and could influence investor sentiment towards software providers that are leading in this space.
The financial implications of adopting advanced EPM software are considerable, especially when considering the quantified benefits such as a $48 million annual cost advantage for a typical $10 billion company. This magnitude of cost savings can materially affect a company's bottom line and consequently its stock price. Additionally, the reported higher customer satisfaction rates for companies deploying these solutions could lead to increased customer retention and a stronger competitive position.
For investors, the research suggests that companies effectively utilizing AI in their EPM systems may offer attractive investment opportunities due to their potential for higher efficiency and better decision-making capabilities. However, it is essential to consider the implementation costs and the timeline for realizing the benefits, as these factors will impact the short-term and long-term financial outcomes.
The evolution of EPM software from traditional on-premises platforms to modern cloud-based systems with AI capabilities is a technological leap that carries implications for the future of finance roles. The emphasis on predictive analytics, real-time decision-making and decision support systems highlights the transformative impact of these technologies on accounting and financial planning. For businesses, this means not only an upgrade in software but also a potential shift in workforce skills and development needs.
Investors and stakeholders should monitor how software providers continue to innovate and how businesses adopt these technologies. The pace at which these changes are adopted can serve as an indicator of a company's willingness to invest in future-proofing its operations and its potential to stay ahead in a data-driven marketplace.
Research Finds Customer Demand for Cost Reduction, Actionable Information and Agility Are Driving Vendor Innovation, With AI a Clear Provider Focus to Leapfrog Productivity and Insight
The EPM Digital World Class Matrix research provides comprehensive analysis of 12 leading EPM software providers and their individual ability to deliver value. It also offers insights on key benchmarking metrics and return on investment measures for finance leaders looking to shape the future of the autonomous enterprise.
The research from The Hackett Group® found that two of the software providers – OneStream and Oracle – achieved Digital World Class® status in all three areas that were analyzed – integrated EPM and two subsets – close and external reporting, and planning and forecasting. One additional vendor – Anaplan – achieved Digital World Class status in the planning and forecasting ratings.
Other integrated EPM rankings were as follows. Four software providers were classified as “Challengers”: Board International, SAP, Vena and Workday. In addition, two software providers were classified as “Emerging”: insightsoftware and Planful.
In the Digital World Class Matrix ranking of planning and forecasting EPM software providers, six software providers were classified as “Challengers”: Acterys, Board International, Planful, SAP, Vena and Workday. Just one software provider was classified as “Emerging” – insightsoftware.
Finally, in the Digital World Class Matrix ranking of close and external reporting EPM software providers, six software providers were classified as “Challengers”: BlackLine, Board International, SAP, Trintech, Vena and Workday. Two software providers were classified as “Emerging”: insightsoftware and Planful.
The research quantified the improved value realization for Digital World Class software providers, including:
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55% more time analyzing information versus compiling data - 3X better forecast accuracy
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$48 million $10 billion -
Far greater customer satisfaction, with
94% of companies satisfied to extremely satisfied with their deployments
The Hackett Group research study was conducted over six months, with evaluations focused on 28 key scoring criteria, business process capabilities and value drivers. The key objective was to provide organizations with an overview of the diverse solutions landscape and empower them to make informed decisions tailored to their unique business needs.
The EPM Digital World Class Matrix study found that requirements vary significantly across organizations and recommends that prospective buyers carefully consider their business process framework, integration and data management complexities, partner relationships, expected benefits, workforce maturity, investment budget, and geographic reach as part of the selection process. Functionality offered, ease of adoption and reporting/analytics scored as the top three reasons for selection. Clearly defined program scope plus process simplification/governance and resource staffing were cited as the most crucial factors for successful implementation delivery and user satisfaction/experience. Faster, deeper insights; proactive capabilities; and modeling agility were cited as the top three value drivers enabling better response to dynamic market changes.
Customer survey participants expected Digital World Class EPM software to transform processes and generate automation time savings and capacity creation of more than
“Innovations in cloud EPM offerings, including artificial intelligence and machine learning, are accelerating benefit realization and driving significant capability enhancement in predictive analytics, real-time decision making and decision support,” stated The Hackett Group Principal, Finance Transformation Jason Logman.
The Hackett Group Director Drew Johnson noted, “EPM software has matured dramatically as organizations moved from legacy on-premises platforms to modern cloud-based software. The ongoing pace of technology advancement will enable EPM software to truly transform accounting, financial planning and analysis roles over the next decade; and investments in technology, training, and development will be crucial for adaptation.”
The EPM Digital World Class Matrix and related research are products of The Hackett Group’s Market Intelligence Service. This practice is designed to evaluate software and service providers’ abilities to deliver quantifiable results from specialized, differentiated capabilities. The Hackett Group defines Digital World Class in the context of the Digital World Class Matrix as the attainment of top-quartile performance for both depth/breadth of features and functionality (capability breadth) and value realization at multiple clients, and the ability to generate similar performance levels for future clients.
The EPM Digital World Class Matrices are part of The Hackett Group’s full 65-page research report. The EPM Digital World Class Matrices should be read in the context of the entire report. A 20-page summary report is also available on a complimentary basis, with registration, at https://go.poweredbyhackett.com/dmepmsum2402nr. Inquiries regarding purchase of the full research report can be made at https://go.poweredbyhackett.com/dmepmful2402nr or by visiting the web page for our Market Intelligence Service at https://www.thehackettgroup.com/market-intelligence.
The Hackett Group does not endorse any participant, vendor, product or service depicted in its research. This research should not be considered as advice that a company considering EPM select only those participants based on their ranking or position on the Digital World Class Matrix. You should not rely upon any material or information within this research as a basis for making any business, legal, financial, or any other decisions. Any such reliance shall be solely at buyer’s risk. The Hackett Group’s research publications consist of the opinions of its research organization and should not be interpreted as factual statements. To the fullest extent permitted by law, the Hackett Group disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability, or fitness for a particular purpose. The information contained in this research is provided on an "as is" basis with no guarantees of completeness, accuracy, usefulness, or timeliness. The Hackett Group assumes no responsibility or liability for damages of any kind arising from any information, data, content, materials, or references within its research, including but not limited to direct, indirect, incidental, consequential, special, and punitive damages.
About The Hackett Group
The Hackett Group, Inc. (NASDAQ: HCKT) is an IP-based strategic consulting and executive advisory firm that enables Digital World Class® performance. Using AI XPLR™ – our AI assessment platform – our experienced professionals guide organizations to harness the power of Gen AI to digitally transform their operations and achieve quantifiable, breakthrough results, allowing us to be key architects of their Gen AI journey.
Our expertise is grounded in unparalleled best practices insights from benchmarking the world’s leading businesses – including
For more information on The Hackett Group, visit: https://www.thehackettgroup.com/; email info@thehackettgroup.com; or call (770) 225-3600.
The Hackett Group, Hackett-Certified, Quantum Leap, and Digital World Class are the registered marks of The Hackett Group.
Cautionary Statement Regarding “Forward-Looking” Statements
This release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements including without limitation, words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” seeks,” “estimates,” or other similar phrases or variations of such words or similar expressions indicating, present or future anticipated or expected occurrences or outcomes are intended to identify such forward-looking statements. Forward-looking statements are not statements of historical fact and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that may impact such forward-looking statements include without limitation, the ability of The Hackett Group to effectively market its digital transformation and other consulting services, competition from other consulting and technology companies that may have or develop in the future, similar offerings, the commercial viability of The Hackett Group and its services as well as other risk detailed in The Hackett Group’s reports filed with the United States Securities and Exchange Commission. The Hackett Group does not undertake any duty to update this release or any forward-looking statements contained herein.
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Gary Baker, Global Communications Director - (917) 796-2391 or gbaker@thehackettgroup.com
Source: The Hackett Group, Inc.
FAQ
What is the significance of the EPM Digital World Class Matrix research conducted by The Hackett Group for HCKT?
Which software providers achieved Digital World Class status in all three areas analyzed?
What were some key findings from the research regarding value realization for Digital World Class software providers?
What factors were cited as crucial for successful implementation delivery and user satisfaction?
What are the top three value drivers enabling better response to dynamic market changes according to the research?
