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

In: Sustainable Digital Transformation

Author

Listed:
  • 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)

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.

Suggested Citation

  • Jörg H. Mayer & Markus Esswein & Moritz Göbel & Reiner Quick, 2023. "Getting Digital Technologies Right—A Forward-Looking Maturity Model for Enterprise Performance Management," Lecture Notes in Information Systems and Organization, in: Stefano Za & Robert Winter & Alessandra Lazazzara (ed.), Sustainable Digital Transformation, pages 183-201, Springer.
    • Handle: RePEc:spr:lnichp:978-3-031-15770-7_12
    DOI: 10.1007/978-3-031-15770-7_12
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