An EPM project usually refers to a project involving Enterprise Performance Management (EPM) a discipline and set of software tools that help organizations plan, budget, forecast, consolidate financials, and analyze performance across the business.
Definition
An EPM project is an initiative where a company implements or optimizes an Enterprise Performance Management system to improve how it:
- Plans its finances
- Creates budgets and forecasts
- Closes and consolidates monthly/quarterly results
- Reports on performance
- Aligns strategy to execution
This is commonly done using modern EPM platforms such as Oracle Cloud EPM, Workday Adaptive Planning, Anaplan, or SAP Analytics Cloud.
What an EPM Project Typically Includes
1. Financial Planning & Budgeting
- Build revenue models
- Expense planning
- Workforce planning
- Multi-year strategic planning
2. Forecasting
- Rolling forecasts
- Predictive/driver-based forecasting
3. Financial Close & Consolidation
- Actuals data integration
- Intercompany eliminations
- Journal adjustments
- Consolidated financial statements creation
4. Reporting & Analytics
- Dashboards for executives
- Variance analysis
- KPI tracking
5. Data Integration
- Connect ERP (e.g., Microsoft Dynamics 365 Finance), CRM, HR systems
- ETL setup
- Data validation rules
Why Organizations Run EPM Projects
- Reduce manual Excel work
- Speed up month-end close
- Improve forecast accuracy
- Increase financial transparency
- Support smarter, data-driven decisions
Example of an EPM Project
A company implementing Oracle Cloud EPM might run a project like:
- Assess current FP&A and close processes.
- Design new budgeting/forecasting models
- Build dashboards and reports
- Integrate ERP and HR data
- Train Finance and Accounting teams
- Go live and optimize
EPM Project Roles
- Project Manager
- FP&A Lead
- Accounting/Consolidations Lead
- EPM Solution Architect
- Data Integration Specialist
- Change Management/Training Lead
What is the difference difference between EPM and ERP?
Here is a clear breakdown of the difference between EPM and ERP, since that’s the part you highlighted:
EPM vs. ERP: Simple Explanation
ERP (Enterprise Resource Planning)
What it does:
Manages the day-to-day operations of a business.
Typical modules:
- Finance/General Ledger
- Procurement
- Accounts Payable/Receivable
- Supply Chain
- HR/Payroll
- Manufacturing
Examples:
- Microsoft Dynamics 365 Finance
- SAP S/4HANA
- Oracle ERP Cloud
Purpose:
Run transactions → write them to the general ledger → store operational data.
EPM (Enterprise Performance Management)
What it does:
Helps a company analyze performance and plan the future.
Key functions:
- Budgeting
- Forecasting
- Financial planning
- Consolidation & close
- KPI dashboards
- Scenario modeling
Examples:
- Oracle Cloud EPM
- Workday Adaptive Planning
- Anaplan
Purpose:
Use ERP data → analyze → plan → improve performance.
The Core Difference
ERP = “Record the business.”
Tracks what has happened through transactions.
EPM = “Manage performance.”
Helps plan and predict what will happen next.
How ERP and EPM Work Together
- ERP collects actuals (sales, expenses, payroll, invoices).
- EPM uses those actuals to:
- Build budgets and forecasts
- Create financial statements
- Model scenarios (“What if revenue drops 10%?”)
- Build budgets and forecasts
- Executives use EPM outputs to make decisions → which inform operational changes in the ERP.
Quick Analogy
| System | Think of it as | Purpose |
| ERP | The company’s engine room | Runs the daily operations |
| EPM | The company’s navigation system | Guides strategy and performance |
How does EPM work?
How EPM Works Explained Step-by-Step
Below is the exact workflow the image represents:
1. Data Sources (ERP, CRM, HR, Payroll, etc.)
Systems like:
- ERP (e.g., Microsoft Dynamics 365 Finance)
- CRM (e.g., Salesforce)
- HR systems
- Operational databases
These systems generate actuals: sales, expenses, headcount, payroll, inventory, etc.
2. Data Integration into the EPM Platform
Data is cleaned, mapped, and loaded into an EPM tool like:
- Oracle Cloud EPM
- Workday Adaptive Planning
- Anaplan
This ensures consistent dimensions (accounts, departments, periods, products).
3. EPM Core Processes
a. Planning & Budgeting
- Revenue models
- Workforce planning
- Expense budgeting
- Driver-based and rolling forecasts
b. Financial Close & Consolidation
- Month-end close
- Journal adjustments
- Intercompany eliminations
- Consolidated P&L, Balance Sheet, Cash Flow
c. Modeling & Scenario Analysis
- “What if headcount grows by 20%?”
- “What if raw materials cost increases?”
- “Best, worst, likely case” modeling
4. Reporting & Analytics
EPM generates powerful outputs such as:
- Dashboards for executives
- Variance analysis (Actual vs Budget vs Forecast)
- Management reports
- KPI scorecards
5. Insights → Business Decisions
The FP&A team and executive leadership use EPM insights to:
- Adjust budgets
- Optimize staffing
- Make pricing decisions
- Improve profitability
- Adjust strategy
Decisions then flow back to operational systems (like the ERP).
Summary (Simple Version)
EPM takes data from ERP → analyzes it → helps plan the future → provides insights for better business decisions.