CPM (Global Market)

2015

In 2016, Gartner divided the traditional CPM Magic Quadrant into two reports, Financial Corporate Performance Management (FCPM) and Strategic Corporate Performance Management (SCPM).

The Magic Quadrant for FCPM solutions for 2015 included 10 vendors. Gartner analysts included Oracle, SAP, BlackLine and Workiva as leaders. Applicants - IBM, visionaries - Trintech, Tagetik, Host Analytics and Longview Solutions, niche players - insightsoftware.com.

Gartner Magic Quadrant for FCPM Solutions

16 companies were included in the Magic Quadrant for SCPM. Oracle, SAP, IBM and Adaptive Insights are among the leaders, SAS are among the applicants, Host Analytics, Anaplan, Tagetik, Longview Solutions, Board International and prevero are among the visionaries, Axiom Software, Prophix, Solver, Jatox

Gartner Magic Quadrant for SCPM Solutions

2014

According to Magic Quadrant for Corporate Performance Management Suites, published by Gartner in 2015 at the end of 2014, the CPM application market is mature and includes suppliers offering widely distributed solutions in large and medium-sized organizations^[1].

Basically, CPM applications serve two areas: focused on improving the efficiency of company financial process management (OOF) and related to performance management (PM) throughout the organization. CPM implementations can also be classified as tactical CPM OOF or strategic CPM. OOF CPM is mainly responsible for improving financial processes, while strategic CPM aims to transform and develop the entire organization.

At the end of 2014, Anaplan, Talentia Software and Tidemark were added to the Magic Quadrant. Compared to the previous report, KCI Computing and Bitam dropped out of the quadrant.

Leaders include Oracle, IBM and SAP. Recall that according to the Gartner classification, leaders control a large share of the CPM systems market and show high levels of CPM sales. They can provide extensive CPM functionality, as well as end-to-end implementations in large corporations. Leaders are noticeably distinguished by well-formed supply and recognizable in the market, have a wide international presence and, accordingly, more opportunities to work in regions around the world.

The Magic Quadrant report for CPM systems is a market study. The fact that some suppliers are market leaders does not mean that their solutions in all situations more effectively meet all functional and technical requirements of users than other suppliers. In fact, in some areas related to a particular product or other criteria (such as availability of cloud solutions, ease of use, flexibility of solutions, innovation, required resources for implementation, or cost of support), leaders may lag behind other companies in that market

The applicants in the Magic Quadrant include Infor and SAS. According to Gartner, applicants must have stable sales revenue and work opportunities in several geographical regions. They offer a good level of functionality, but they may lack one or more CPM components in their solutions. They can provide solutions that complement their existing business applications to expand their core customer base. Applicants' decisions may also have narrower CPM coverage than leaders.

Visionaries (visionaries) include Adaptive Insights, Tagetik, Host Analytics, Anaplan, Longview Solutions, Board International, prevero and Tidemark. According to Gartner, this group has a good opportunity to implement CPM systems. Innovation, openness, and flexibility in application architecture are among these companies. Visionary solutions differ in depth of functionality in certain areas, but may have gaps in terms of the width of the spectrum of tasks to be solved. They often provide new or advanced functionality to meet unmet market needs. The supplier from this area is an ideological leader and innovator in the market, but may not yet have reached sufficient scale and/or market share, or have not yet realized its ability to grow and develop confidently.

Niche players include Prophix, Axiom EPM, Solver and Talentia Software. Niche players, as defined by Gartner, are either successful only in a certain segment in the CPM systems market, or have limited potential to compete with other players in the market. Such providers most often focus on a specific area or aspect of CPM. Most likely, they either lack depth of functionality, or there are gaps in the range of solutions they provide. Sometimes niche players can offer CPM systems with a fairly wide range of solutions, but have limited implementation and support capabilities, as well as relatively small client bases. Perhaps these companies have not yet reached the necessary scale to strengthen their market position. The geographical presence of some such players is limited to their own regions.

Although the CPM market is mature, new opportunities exist and the market continues to grow rapidly. Many Visionary vendors at Magic Quadrant have raised new funding over the past two years, most prominently: Anaplan ($33 million Series C funding in 2013, $100 million Series D funding in May 2014, total $144.4 million), Adaptive Insights ($45.9 million Series F funding in 2013, total $101.3 million), Tidemark ($13 million Series D funding, $1.1 million venture capital funding in 2013, $32 million Series E funding in April 2014, total $80 million), Host Analytics ($17 million Series D funding in 2013, $25 million Series E funding in November 2014, just over $100 million), and Tagetik (initial external investments amounted to $36 million in July 2014). Acquisition activities also increased in 2014. Axiom EPM was acquired in April by consulting company Kaufman Hall, and Longview Solutions was acquired by Marlin Equity Partners in July 2014. Although the CPM market is mature, a number of vendors have made significant and, in many cases, unprecedented investments in clouds, IMCs, advanced analytics, and industry offerings.

Each year, Gartner highlights the most influential market factors when considering the performance of each vendor. Magic Quadrant highlights opportunities in three major areas of market development. The first area is cloud solutions. The CPM market is shifting towards cloud solutions that provide shorter evaluation time and increased ease of use. The ability to provide cloud solutions and the vendor's experience in supporting these solutions has been given considerable attention in this market study. The second main area of ​ ​ market development is the ability of the vendor to provide more comprehensive support for strategic financial planning. The third main area of ​ ​ market development is analytics.

2012

Market Status

The global system market in CPM 2012 developed like 2011: vendors for the most part focused on the development of existing solutions and portfolios, according to Gartner a February 2013 report. An important focus for most serious suppliers was the strengthening of BI solution capabilities. This includes in-memory computing, the use of mobile analytics, data visualization, dashboards to support the processing of large amounts of data and improve their research tools.

All this meets business requirements, since, according to a survey of financial managers in 2011 conducted by Gartner, most of them named^[2] as their main priorities in the field^[2] BI technology]. In 2012, a CIO survey also conducted by Gartner showed that Executive^[3] remains among their top priorities].

Since many organizations have already decided on a cloud strategy (or at least started using separate SaaS applications), most vendors SaaS CPM in 2012 were able to significantly expand the client base. As a response, many on-premises vendors developed and offered customers alternative systems deployment models or introduced a subscription.

Gartner experts also note that many CPM vendors, who previously mainly specialized in selling solutions to medium-sized businesses, entered the Tier I solutions market in 2012, for the first time implementing projects on their platforms, where the number of users reached several hundred. A number of projects were implemented, primarily affecting the planning areas, where the number of users exceeded 1 thousand people. Earlier, implementations of this scale were completely and completely given to megavendors.

In 2012, there was also an increase in the number of projects where CPM systems began to be used to develop and manage company strategy. In addition, more actively developed and implemented solutions sharpened for certain industries and businesses, which reduced the cost of implementation and reduced the time to value. The deepening of such food niches will only increase, predicted in Gartner.

CPMs will continue to remain and be seen by companies as a set of strategic and tactical tools. Although the concept of enterprise performance management is already widespread, some countries with developing economies, such as the BRIC countries, are still dominated by the use of spreadsheets and other simpler tools. In addition, the most widely used CPM is to optimize financial processes, and not solve strategic problems.

Volume and major vendors

According to IDC's 2013^[4] study, in ]2012, the market for performance management systems (which IDC places in one segment along with analytical applications) amounted to $11.35 billion, which is 7.7% more than in 2011 ($10.54 billion). For comparison, in 2011 its growth amounted to 13.6% (and the volume in 2010 was $9.28 billion).

Global Performance Management and Analytical Applications Market, 2011-2012, $ million

IDC, 2013

2012 Gartner Magic Quadrant for CPM Systems

Gartner, February 2013

According to the Gartner magic square for 2012, SAP, Oracle and IBM maintained leadership in the global CPM system market. Also, SAS Institute and Infor are among the vendors with sufficient weight in the market, but not reaching the leaders (challengers).

Main trends

Increased focus on financial analytics

CPMs are often viewed and perceived as BI for finance. However, organizations that try to use CPM as BI may face a number of challenges. At a simpler level, financial analysis and data from it can indeed be used outside financial departments to operate companies, but BI platforms contain much more advanced analytics capabilities and operate on a variety of data types. Nevertheless, BI technologies are increasingly being used in CPM: these include both predicative analysis, advanced visualization, and new models of data discovery analysis. Vendors are likely to go further in terms of tighter integration of CPM and BI.

Growing demand for cloud and mobile capabilities

Gartner expects increased demand for CPM SaaS both among midsize and Tier I companies. Many vendors have already announced the launch of cloud CPM systems on the market, although they previously used more traditional supply models. This is positive for the market, since using CPM in the cloud will increase some of the benefits that such systems provide, as well as reduce costs. Of the SaaS CPM vendors, only the company was included in the Gartner magic quadrant in 2012 Host Analytics, but there are already a lot of players in this segment.

The use of CPM on mobile platforms is also actively developing: this includes the delivery of reports and the use of interactive dashboards on mobile devices, KPI reflection and other capabilities. Some vendors are actively moving along this path, for example, here you can recall the new SAP EPM platform OnDemand and the SAP Unwired client.

Integrated planning and forecasting

CPM vendors are constantly working to develop deeper and more powerful planning and forecasting tools. Some vendors with historically strong expertise in this area, such as IBM and SAS, use in-memory computing technologies for these purposes. Others, such as SAP and Oracle, are also working on using in-memory for planning (for example, SAP Hana can now be used with SAP Business Planning and Consolidation for SAP NetWeaver solution, and Oracle Exalytics with Hyperion Planning). All of this allows you to process really significant amounts of data, as well as it is enough to quickly rebuild models and more accurately carry out revenue and cost modeling (PM&O).

Better financial management

Financial management (for example, data disclosure management) and additional "last mile" capabilities (reconciliation of accounts, etc.) are becoming increasingly popular among CPM users, so that vendors counter-continue to deepen the functionality of their respective blocks. For example, a number of system vendors have added support for XBRL and iXBRL formats. Tools for working with tax reserves and so on appear.

2011

2011 Gartner Magic Quadrant for CPM Systems

Gartner, March 2012

2011 was the first year of relative stability in the global CPM system market after the rapid consolidation processes that he experienced in previous years, as well as the active growth of the portfolio by all major players.

In 2011, the market continued to dominate, occupying maximum shares, the top three megavendors represented by Oracle, SAP and IBM, but the growth of specialized suppliers continued. So, Gartner experts counted about 90 vendors providing CPM functionality in whole or in part.

2010

In 2010, according to Gartner, the global CPM system market grew by 12.8%. The market was already recognized by analysts as quite mature.

The market continued to be dominated by three megavendors represented by Oracle, SAP and IBM with shares of 21.9%, 16.8% and 7.6%, respectively.

2010 Gartner Magic Quadrant for CPM Systems

Gartner, March 2011

See also

• Business Intelligence, BI (Global Market)
• Corporate Performance Management, CPM (Russian market)

Notes