Differences between CPM/FPM/EPM

[Former Member]

Hi all!

The more documents I read about, the more confused I get.....

I don't whether SEM became CPM and this will no longer be CPM to become FPM or it is just a complement... I don't if EPM includes both FPM&CPM or just one 'cause one will become the other one...

Can anybody explain (as if I were a 5 year old boy ) how this goes. And what are the components of each one? Any doc about it would be really appreciated.

Thank you very much.

[Bob_McGlynn · Accepted solution]

Rafael,

This is confusing because there is no standard definition of performance management in the marketplace. If you go searching, I would bet you could find at least two or three more terms, like OPM - operational performance management. The best way to approach all of this is if you think of CPM/EPM/FPM as just variations on the same theme, which is improving financial and operational performance.

A quick look at the recent SAP acquistion applications:

Strategy Management (SSM) formerly Pilot

Business Planning and Consolidation (BPC) formerly Outlooksoft

Profitability and Cost Management (PCM) formerly ALG

Governance, Risk, and Compliance (GRC) formerly Virsa

Business Objects reporting and business intelligence capabilities

And there are other SAP applications, as well as our ERP system working together to provide necessary data. I would recommend visiting the link provided by Pravin in his reply to better understand how SAP is going forward, overall, with our technology.

Each of the above solutions can be implemented separately, and depending on the immediate needs of an organization that very well may be how one of these is introduced. SAP believes that to fully leverage operational and financial performance, a company needs to implement all of these pieces because, working together, they give a total, enterprise view of performance.

Terms like BPM, CPM, EPM, FPM, OPM are used in the marketplace when talking about performance management ( business, corporate, enterprise, financial, or operational). These different variations have sometimes been used by particular software vendors to stake a claim to a "flavor" of performance management that they hope is uniquely theirs.

And performance management as defined by an individual organization may emphasize or focus more on financial areas or operational areas, though both are ultimately necessary to manage and drive performance. SAP has assembled an impressive set of functionality that can align the operational and financial areas of a company. The key is to have these work together, since strategy has to take into account risk and profitability; has to be tied to budget and planning; and can only monitor, or leverage strategy, using all of the appropriate business data that resides in various systems.

No matter what you want to call it, SAP has the complimentary applications that drive the operational and financial performance of a company.

I'm not sure a 5 year old might be able to follow all of that, but hope it comes closer to answering your question!

Regards,

Bob

[Former Member]

Thank you all. I think I finally got it!!

[Former Member]

Hi Rafael,

SEM are old set of tools position by SAP to address peformance management needs of an organisation. It includes SEM BPS, BCS, SM/PM, SRM.

When SAP acquired Outlooksoft, they positioned new products as CPM to address the same needs. SEM still exists as separate set of tools.

When SAP aquired BO, they positioned new products from Outlooksoft, Pilot and BO as part of FPM suite. It includes SAP BPC, SAP SSM, SAP Profitability and cost management, Consolidation products (SEM BCS, BPC consolidation, BO cartesis).

FPM suite is fitted into EPM which includes FPM (financial performace management), operational and customer performance management tools.

SAP's recent roadmap clarifies the above details. You can download it from ASUG.com.

regards,

Lokesh Nandula

[Former Member]

First of all, thank you very much for your answer.

So, to see if I got it.

First, it was SEM (right).

Then SAP bought Outlooksoft and then CPM came up. But CPM had its own components, right? I've read it had Planning, Consolidation and Fast Close (CPM BPC), Profitability Management, Business Intelligence and Strategy Management (CPM SSM). Is this right?

Then SAP acquired BO, and created the FPM suite (which replaces CPM) and has those components you mentioned earlier.

Finally SAP creates EPM that includes FPM and two other tools (operational and customer perfomance management) (acronyms?)

Is this right at all or am I getting even more confused?!?!?!?

I think that I'm missing info about CPM...

Sorry about this, but I dont have access to ASUG. I have to find out if my company has one.

[pravin_datar]

Hi Rafael,

Here is the statement of direction from SAP about the future of EPM. To be simple, just think that SEM was the past and EPM is the future - let go of FPM for now.

https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/library/uuid/40a5b319-062b-2b10-c1a1-a3c33f0e...

Regards

Pravin