The Future of CPM: Finance Corporate Performance Management

The state of finance is rapidly evolving. Finance and accounting departments are under increased pressure to produce real-time intelligence and forward-looking analysis to support business decisions. This, coupled with dramatic shifts in business models and regulatory environments, are forcing organizations to take a close look at their operations and processes. The risks associated with doing nothing are ever-growing, and companies who are adopting modern finance are at a competitive advantage.

To address these key shifts in the industry, Gartner has divided the Corporate Performance Management (CPM) market into two components: Financial Corporate Performance Management (FCPM), and Strategic CPM (SCPM). Until now, CPM has been categorized as a full suite for Finance and Accounting: financial close, consolidation, financial and management reporting, budgeting and planning, and profitability.

SCPM focuses on the FP&A aspects like budgeting, planning, modeling and reporting, while the FCPM market focuses purely on improving the accounting aspects in the financial close. The components of an FCPM solution include financial reporting and consolidation, and enhanced financial control and automation (EFCA).

With this change, Gartner is making a strong statement about where they see the market headed.  Gartner says, “Through 2020, continued innovation in office-of-finance process optimization [FCPM] and strategic corporate performance management [SCPM] will guide 70% of organizations to capture additional business value and consider investment in these areas, led by “accounting” and “business planning/finance” as separate initiatives.”

Gartner is advising finance organizations to use hybrid approaches to corporate performance management, and evaluate financial close automation in terms of best of breed, features, and cloud delivery. They predict that 80% of new financial close deployments will be best of breed cloud, and by 2018, 60% of organizations will have replaced their CPM suites with an FCPM and an SCPM solution.

What Does This Mean for BlackLine?

In the newly released 2016 report, Gartner’s new FCPM Magic Quadrant has demoted traditional CPM leaders, allowing new leaders to emerge.

BlackLine is completely aligned with the direction that Gartner believes organizations are headed, and this was confirmed as BlackLine debuted as a Leader in the 2016 Gartner Magic Quadrant for FCPM. BlackLine is one of only two pure play cloud vendors in the Leader’s Quadrant, reflecting our commitment to deliver the world’s most trusted solution for Finance Controls and Automation.

“BlackLine has always been a trailblazer in the EFCA space. It was among the first companies to develop and market an account reconciliation (2005) and financial close solution (2006) to manage close activities through an integrated package and through all post-GL closing activities. BlackLine received above-average scores for execution; its highest score was for customer experience,” says Gartner.

Download the full Gartner report for detailed analysis and insight.

About Gartner

Gartner is the world’s most respected industry analyst firm, and is connected to tens of thousands of finance and IT leaders and mid-size and enterprise organizations, globally.