Research
The Hackett Group: New Enterprise Performance Management Software Provider Study Finds Modern Cloud-Based Software Delivers Far Greater Value Realization Than Legacy Systems
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
Miami, FL – February 28, 2024 – Today’s modern, cloud-based enterprise performance management (EPM) software delivers dramatically greater value realization than legacy solutions, according to new EPM Digital World Class Matrix™ research from The Hackett Group, Inc. (NASDAQ: HCKT). The research found that customer requirements are one factor driving vendor innovation, and integration of artificial intelligence (AI) is a clear focus of leading software providers in their efforts to deliver productivity improvements and greater 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:
- 55% more time analyzing information versus compiling data
- 3X better forecast accuracy
- $48 million annual cost advantage (for a typical $10 billion company)
- 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 41% for planning and forecasting, and 26% for close and external reporting. Setting clear targets for cost reduction and productivity redeployment were inconsistent, highlighting a key opportunity for organizations to better understand and track realization of their business case strategic objectives. The evolution from static financial reporting to intelligent, collaborative and predictive optimization improves operational decision making, controls costs, and accelerates growth.
“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 97% of the Dow Jones Industrials, 89% of the Fortune 100, 70% of the DAX 40 and 55% of the FTSE 100 – and are delivered leveraging our Digital Transformation Platform, Hackett Connect™ and Quantum Leap®
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.
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