Getting Digital Technologies Right—A Forward-Looking Maturity Model for Enterprise Performance Management

Jörg H. Mayer (), Markus Esswein (), Moritz Göbel and Reiner Quick
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Jörg H. Mayer: Darmstadt University of Technology
Markus Esswein: Darmstadt University of Technology
Moritz Göbel: Darmstadt University of Technology
Reiner Quick: Darmstadt University of Technology

A chapter in Sustainable Digital Transformation, 2023, pp 183-201 from Springer

Abstract: Abstract Enterprise performance management (EPM) helps in executing a company’s strategy. As transformations towards digital EPM are challenging, the objective of this paper is to develop a forward-looking maturity model to help companies digitalize their EPM. We apply a “zero-quartile” approach. In contrast to the best practices of top performing companies (“first quartile”), a zero-quartile defines the expected (collectively deemed best possible) state of a future EPM leveraging digital technologies. We employ the Rasch algorithm on data of a survey of 203 participants and based on a maturity model, we come up with four design guidelines to help companies digitalize their EPM. (1) A digital enterprise platform is the future single source of truth for planning, budgeting, and forecasting. Backing managers’ experience with data, it combines harmonized ERP outcomes with insights from market analyses, social media, and other sources. (2) Predictive analytics is the first opinion for planning, budgeting, and forecasting. Yet, managers have to learn to accept such outcomes so that they can focus more on irregularities. (3) Standard reports and analyses as well as standard comments will be automated. User-centricity is the “new” normal for a more natural working modus. (4) Managers should overcome their reluctance to work with data and start analyzing in a self-service fashion. Technology will support them from a global view to a line-item level.

Keywords: Enterprise performance management (EPM); Maturity model (MM); Benchmarking; Digital technologies; Survey; Rasch algorithm; Design science research in information systems (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/978-3-031-15770-7_12

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