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Find out what EPM is and understand how it can help your company!

Find out what EPM is and understand how it can help your company!

In light of the technological and methodological advancements in the way companies are managed, it is important to understand that many innovations go beyond simple digital tools, presenting new ways of meeting the demands of an enterprise. An example of this concept is the EPM. But what is EPM?

EPM is an English term that means “Enterprise Performance Management”. The goal of this methodology is to improve the internal processes of a business.

If you want to understand more about this topic, read this article to the end!

What is EPM, methodology or software?

It is important to clarify that EPM is not software, as many people believe. It is a business endeavor to seek effectiveness in your business. However, this pursuit can obviously be made easier by using technological tools, so it is common to find developers offering software for EPM.

How can EPM help a company?

First of all, EPM gives entrepreneurs the opportunity to re-evaluate their processes. The last few years have seen important changes – and many ways of working are outdated.

By applying EPM in the business, the entrepreneur faces these processes and can evaluate them, finding out if their company is still operating in a viable way and compatible with the new times. Immediately, managers can identify wastes, human or mechanical failures, and opportunities for improvement.

This step requires automation, since modeling the processes in an analog way becomes complex and costly.

How to apply this technique?

After identifying the processes, the entrepreneur will begin to analyze them. This analysis is automated by the software that identifies, monitors and reports on the internal process chosen. By revealing data on these processes to the entrepreneur, EPM allows corrections to be studied and applied safely.

Therefore, the first step that a company needs to take to gain access to the benefits of this methodology is to automate its processes, monitoring them by using the appropriate tools.

The technology also allows the creation of process simulations. That way, the company is able to test different strategies before putting them into practice. The simulation of a process can avoid great losses to the company, in addition to preventing resources from being directed to an idea that will not bring about a return.

After choosing the strategy that will be adopted, the company starts to perform it in an automated way, reducing failures, taking better advantage of its resources and improving its way of working. All automated processes are controlled by efficient tools, with the purpose of ensuring that the entire EPM strategy works.

It is possible to apply this technique to the most diverse processes, improving the communication between company sectors, correcting accounting failures, meeting governance goals, controlling inventory, etc.

Now that you understand what EPM is all about, it’s important to study how to apply this concept to your business, as it is directly linked to efficiency gains, improved resource management, reduced waste, and correction of faults in decision-making.

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