Over the years, our clients and team members have been primarily interested in the Gartner Magic Quadrant for Corporate Performance Management Suites. But just around this time last year, Gartner decided to “retire” its Magic Quadrant for Corporate Performance Management Suites and instead issue a Magic Quadrant for Financial Corporate Performance Management Solutions and a Magic Quadrant for Strategic Corporate Performance Management.
In the Gartner report, The Breakup of the CPM Suite, analysts John Van Decker and Christopher Iervolino wrote, “the evolution of the corporate performance management (CPM) market is creating two segments: finance CPM and strategic CPM.” The report sees the impact of this split as:
- “Enabling finance application strategists to leverage finance CPM (FCPM) applications to better target improvements in accounting processes as well as management reporting and analysis;” and
- “Enabling finance and corporate application strategists to leverage strategic CPM (SCPM) solutions to provide enhanced business planning and best practices for corporate planning and modeling, performance reporting and strategy management.”
The analyst firm finds that “through 2020, continued innovation in office-of-finance process optimization and strategic corporate performance management will guide 70% of organizations to capture additional business value and consider investment in these areas, led by “accounting” and “business planning/finance” as separate initiatives.
What this means to us is that organizations who are looking to move off of Excel and other rudimentary “budgeting” approaches to gain efficiencies and become more effective, will want to look at the Magic Quadrant for Financial Corporate Performance Management Solutions. The products covered in this report focus primarily on the office of finance and its needs for budgeting, planning and reporting.
Organizations who are looking to take a data-driven approach in finance and operations—particularly those looking for a solution that will be rolled out to line-of-business managers—will want to read Gartner’s assessment of vendors in its Magic Quadrant for Strategic Corporate Performance Management. These products address not just planning and analysis for finance, but also for sales and operations planning, head count planning, project planning, capital planning and more.
Read our next blog post, Understanding Gartner’s Magic Quadrants for Analytics, Part 2, for our take on the Magic Quadrants for various aspects of Advanced Analytics.