Businesses have greater confidence in the effectiveness and accuracy in the processes they use to plan and report their strategic performance – sometimes known as business performance management – than they did a year ago, according to software vendor Oracle.
The business software vendor’s latest Enterprise Performance Management Index clicked up to 7.04 on a scale of one to ten, from 5.13 a year ago. Oracle attributes the increase to the economic downturn, which it claims has encouraged many organisations to actively pursue greater process management efficiency.
Much of that effect can be attributed to organisations based in the US, but UK-based enterprises moved up to 6.94 from 2009’s score of 5.13.
“The improved index doesn’t as much signal any material advances, but this rediscovered confidence creates the preconditions for real improvement to take place,” said Frank Buytendijk, vice president of enterprise performance management at Oracle and former Gartner analyst. “Comparing it to a rise in consumer confidence preceding a spending increase, this increase in performance confidence will precede new projects and improved ways of working.”
Specifically, businesses noted greater confidence in strategic planning and reporting processes, and an increase in focus on customer loyalty and churn reduction as a growth driver.
The index, which surveys 800 business decision makers across Europe and North America, takes into account six key areas of performance management, including the stakeholder environment, business model, operations and results.