The Enterprise Performance Management (EPM) systems are becoming more user-friendly and more accessible. The need for making business strategy transparent to all employees, increased focus on core business and improved scalability, and need to improve business performance have boosted the growth of the global EPM market. According to a research firm, Allied Market Research, the global EPM market accounted for $4,738 million in 2016 and is expected to reach $12,562 million by 2026, registering a CAGR of 11.7% CAGR during the period 2018–2025.
Vector Capital acquires Host Analytics
Vector Capital, a private equity firm aimed at on value-oriented investments in technology firms recently announced to acquire Host Analytics, Inc. Host Analytics offers a scalable, cloud-based platform for finance teams to automate consolidation, planning, and reporting processes. On the other hand, Vector Capital specializes in transformational investment in leading technology firms.
Despite the acquisition of the company, Host Analytics’ biggest shareholder, StarVest Partners, is expected to retain its position as the major investor in the company. For this acquisition to take place, Vector Capital is expected to pay $1.4 billion funds that raised last year to invest in the key technology companies across several platforms such as internet and digital media, industrial technology, software, and communications.
The acquisition is aimed to continue delivering EPM services to the customers of Vector Capital across the world. Dave Kellogg, the CEO of Host Analytics, stated, “We are highly pleased to partner with Vector Capital to boost our growth in the ever-growing EPM market. This is extremely exciting time for our firm, our employees, and our customers as Vector Capital will bring significant financial and operational resources.” He added that Vector Capital will bring an expert team that could help reinforce the company’s culture of excellence with its more than 20 years of track record and plan to drive the business forward.
Big organizations strive for data-driven performance processes
According to study of Workday, one of the leading firms that offer enterprise-level software solutions for financial, HR, and planning, the global EPM needs a promotion. The report analyzed more than 600 employees-performance decision makers and concluded that about 87% of the large enterprises believe that helping teams succeed is one of the major goals for continuous performance management (CPM).
The study that was conducted the survey from business across 14 countries including Europe, North America, and Asia-Pacific and reported that about 82% of large firms exclusively look to evolve their approach of performance management, because they feel that continuous performance processes will improve support employee development and boost employee retention. On the other hand, 45% of them stated that they need to improve employee performance to measure business objectives.
Workday was founded in 2002 and has been delivering financial management, human capital management, and analytics applications that are designed for the world’s major companies, government agencies, and educational institutions. For this study, the company evaluated performance management approaches of at medium and large enterprises and developed a path that can help organizations to become more effective by placing employees at the center.
As every year passes by, enterprises need to reassess and readjust its performance management system to ensure that the company is as conducive to productive as possible. In 2018, enterprises let go of the traditional appraisal systems and focused on the quality of feedback at the heart at everything. However, 2019 is expected to witness new trends in the EPM systems owing to rapid developments in the market.
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