Unit4 BV

01/22/2025 | News release | Distributed by Public on 01/22/2025 05:50

Exploring the future of Corporate Performance Management in 2025

The BARC x BPM Partners Global CPM Trends and Priorities Report 2025 provides a comprehensive view of the latest market dynamics, trends, and priorities in CPM.

This unique report combines insights from two premier analyst research studies-the BARC Planning Survey 24 and the 2024 BPM Pulse Study-to offer actionable data and analysis for organizations and vendors alike.

Key findings and why they matter

1. Predictive planning and forecasting take center stage

Predictive planning and forecasting have emerged as top priorities, with 53% of organizations planning to adopt these capabilities.

While the technology has been available for several years, adoption has lagged due to a lack of understanding and readiness. However, shifting economic conditions are driving a renewed focus as businesses require more frequent, accurate forecasting to navigate uncertainty.

This trend reflects a maturing mindset: organizations now recognize that predictive tools powered by machine learning and automation can deliver proactive insights rather than reactive adjustments.

2. Cloud-based CPM solutions dominate

The transition to the Cloud has been the most significant shift in CPM from 2016 to 2024. By 2025, 79% of implementations are expected to occur in the Cloud. Cloud technology offers unparalleled benefits:

  • Collaboration: Teams can work seamlessly across geographies.
  • Accessibility: Decentralized work environments thrive with Cloud-based tools.
  • Innovation: Vendors can deliver updates and new features more frequently.

Yet, regional differences persist. While North America and Asia boast adoption rates of 62% and 68%, Europe lags at just 42%, highlighting that the potential move from on-premises systems will grow in coming years. This disparity highlights opportunities for education on the benefits and adoption of cloud technology in underpenetrated markets.

3. The rise of self-service planning

A critical finding is the widespread adoption of self-service planning tools, with 68% of users already leveraging such functionality. This approach reduces dependency on IT and external consultants, empowering finance teams to drive faster decision-making.

Self-service functionality underscores a shift towards democratizing data and analysis within organizations, making it easier for users to update plans, generate reports, run scenarios, and analyze performance without external bottlenecks.

Why integration is the ultimate CPM goal

One of the biggest challenges highlighted in the report is the integration of strategic, operational, and financial planning -a priority for 41% of organizations. Why does this matter? Integration ensures that operational plans align with strategic objectives and that financial forecasts reflect real-world constraints and opportunities.

This alignment leads to a more holistic understanding of business performance, enabling what the report calls financial and operational signaling. For instance, monitoring operational plans can provide early warnings of potential financial impacts, allowing businesses to pivot proactively when they are required to respond to change.

CPM trends driving market transformation

1. Scenario simulation and analysis

With 40% of organizations prioritizing scenario simulation, CPM tools are evolving to help businesses anticipate and prepare for multiple outcomes. This capability is particularly crucial in uncertain economic climates, where flexibility and foresight are key.

2. Predefined planning content

Prebuilt solutions and models are gaining traction as they accelerate time-to-value. These solutions enable companies to implement best practices quickly, expand into new use cases, and reduce the learning curve for new users.

3. AI and Machine Learning

Leaders in CPM adoption are embracing AI and machine learning to optimize forecasting accuracy, automate anomaly detection, and streamline workflows through robotic process automation (RPA).

While the laggards hesitate, leaders leverage these technologies to stay competitive, reducing cycle times and improving decision-making.