Enterprise Performance Management (EPM): Barriers, AI’s Impact & How to Get Started
Enterprise Performance Management (EPM) is transforming financial decision-making, yet many organizations struggle with implementation. In a recent webinar, Gary Cokins, a renowned EPM expert, explored the barriers preventing companies from adopting advanced performance management techniques, the role of AI in finance, and how to start implementing EPM successfully.
The Key Barriers to EPM Implementation
Despite the clear benefits of EPM, companies often face obstacles that slow adoption:
- Technical Challenges – Inconsistent data, outdated systems, and integration issues.
- Perceived Complexity – Many believe EPM solutions, especially Activity-Based Costing (ABC), are too difficult or costly to implement.
- Resistance to Change – Executives and teams often hesitate to move beyond traditional cost allocation methods.
However, Cokins emphasizes that these challenges are surmountable, especially with modern EPM tools and a phased approach to implementation.
AI’s Role in EPM & Finance
Artificial Intelligence (AI) is reshaping financial planning and analysis (FP&A), making processes faster and more accurate. Key AI-driven advancements include:
✅ Predictive Analytics – AI enhances forecasting by identifying trends in large datasets.
✅ Automation – Routine financial tasks, such as budgeting and reconciliations, are increasingly automated.
✅ Prescriptive Analytics – AI-powered decision support helps businesses optimize resources and costs.
While AI won’t replace finance professionals, it enhances decision-making, allowing CFOs and FP&A teams to focus on strategy rather than manual tasks.
How to Get Started with EPM
Cokins advises companies to start small and scale gradually using rapid prototyping:
🔹 Phase 1 – Strategy Alignment: Define business goals using a strategy map and balanced scorecard.
🔹 Phase 2 – Data-Driven Costing: Implement Activity-Based Costing (ABC) to allocate costs accurately.
🔹 Phase 3 – AI & Forecasting: Use driver-based planning and rolling forecasts to improve financial agility.
Modern EPM solutions, like NetSuite Planning and Budgeting, enable businesses to transition seamlessly from traditional budgeting to AI-powered forecasting.
About Gary Cokins
With over 40 years of experience in EPM, FP&A, and cost management, Gary Cokins is a recognized authority in the field. A Cornell University graduate with an MBA from Northwestern University’s Kellogg School of Management, he has worked with Deloitte, KPMG, and SAS. He was trained by Harvard Business School professors Robert Kaplan and Robin Cooper, pioneers of Activity-Based Costing (ABC) and the Balanced Scorecard. As the founder of Analytics-Based Performance Management LLC, he has authored over 10 books on cost management, analytics, and corporate performance. His expertise makes him a leading voice on EPM best practices and AI’s role in finance. Visit https://www.garycokins.com/
Final Takeaways
✔ EPM is essential for data-driven decision-making and competitive advantage.
✔ AI is revolutionizing finance, but companies must act now to stay ahead.
✔ Start small, use rapid prototyping, and focus on business impact.
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