This week Gartner research vice president John Van Decker and research director Chris Iervolino took the bold move of splitting the corporate performance management (CPM), also known as enterprise performance management (EPM), magic quadrant in two.
Instead of publishing a single magic quadrant (MQ) for all of CPM, they published two MQs, one for strategic CPM and one for financial CPM, which they define as follows:
- Strategic Corporate Performance Management (SCPM) Solutions – this includes Corporate Planning and Modeling, Integrated Financial Planning, Strategy Management, Profitability Management, and Performance Reporting.
- Financial Corporate Performance Management (FCPM) Solutions – this includes Financial Consolidation, Financial Reporting, Management Reporting/Costing/Forecasting, Reconciliations/Close Management, Intercompany Transactions, and Disclosure Management (including XBRL tagging)
What do I think about this?
- It’s bold. It’s the first time to my recollection that an MQ has included product from different categories. Put differently, normally MQs are full of substitute products — e.g., 15 different types of butter. Here, we have butter next to olive oil on the same MQ.
- It’s smart. Their uber point is that while CPM solutions are now pretty varied, that you can pretty easily classify them into more tactical/financial uses and more strategic uses. Highlighting this by splitting the MQs does customers a service because it reminds them to think both tactically and strategically. That’s important — and often needed in many finance departments who are struggling simply to keep up with the ongoing tactical workload.
- It’s potentially confusing. You can find not just substitutes but complements on the same MQ. For example, Host Analytics and our partner Blackline are both on the FCPM MQ. That’s cool because we both serve core finance needs. It’s potentially confusing because we do one thing and they do another.
- We are stoked. Among cloud pure-play EPM vendors, Host Analytics is the only supplier listed on both MQs. We believe this supports our contention that we have the broadest pure-play cloud EPM product line in the business. Only Host has both!
- In a hype-filled world, I think Gartner does a great job of seeing through the hype-haze and focusing on customers and solutions. They do a better job than most at not being over-influenced by Halo Effects, and I suspect that’s because they spend a lot of time talking to real customers about solving real problems.
(Cross-posted @ Kellblog)