making driver-based planning and budgeting work
DESCRIPTION
For Finance departments to best navigate through the twists and turns of today’s fast moving marketplace, a haphazard, once-a-year budgeting process just doesn’t cut it. To survive and thrive in this environment, this process needs to change to be more agile, align around a consistent set of resources, and attain a trusted level of accuracy. One reliable way to transform your budgeting process is to integrate the modeling that budget contributors typically do on spreadsheets to deliver driver-based planning and budgeting. With benefits such as being able to rapidly reforecast with minimal effort, having operational capacity always aligned, and better decision making that comes from having a deeper insight into variances, it has obvious appeal. So why is it not more widely used? View these slides from our webinar with Forrester Research and Proformative and watch the full webinar here: https://www.anaplan.com/webinars/driver-based-budgeting/TRANSCRIPT
Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Driver-based Budgeting and Planning: Agility, Predictability, and AlignmentRichard Barrett, Financial Software Expert, Anaplan
WHAT YOU NEED FOR
DRIVER-BASED BUDGETING
PLANNING & BUDGETING
CHALLENGES
DRIVER-BASED PLANNING & BUDGETING
Our Session Today
Planning, Budgeting& Forecasting
Configure, Price & Quote
Demand Planning
Profitability Analysis
SKU Level Forecasting
Incentive & Compensatio
n
Territory & Quota Planning
Sales Forecasting
Financial Consolidation
OPERATIONS
FINANCE
HR
Integrated Business Planning
Workforce Planning
Project Resource Planning
SALES
CAPEX Planning
Cash Flow Planning
Strategic FinancialPlanning
Sales Capacity Planning
Trade & Promotional
Planning
Managing Volume, Complexity & Collaboration In Real-Time
1 trillion+ cells in our
modelsPatented
technology Hyperblock
™
10locations
worldwide
100+apps &
accelerators
100+global &
local partners
175+ global
customers
20,000+ engaged
users
Founded in
2007
3x revenue growth in
2013
$150Min funding
WHAT YOU NEED FOR
DRIVER-BASED BUDGETING
PLANNING & BUDGETING
CHALLENGES
DRIVER-BASED PLANNING & BUDGETING
Our Session Today
4321Takes too long & costs too
much
Cannot reforecast as frequently as
desired[OR NEEDED
TODAY]
Not accurate enough
Always out of date
Challenges with Budgeting Today
4321Takes too long & costs too
much
Cannot reforecast as frequently as
desired[OR NEEDED
TODAY]
Not accurate enough
Always out of date
…and during this time many organizations have moved away from spreadsheets!
Challenges with Budgeting Today
BUDGET P&L
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Unifying Planning With Budgeting
BUDGET P&L
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Unifying Planning With Budgeting
BUDGET P&L
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Unifying Planning With Budgeting
OPERATION PLANNING Typically done outside of Enterprise FP&A solution
BUDGET P&L
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$
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Expenses $
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Unifying Planning With Budgeting
“
”
DBP&B
links demand
to the
resources
needed to fulfil
that demand
and their unit
cost to model
key variable
expenses
Benefits
“
”
DBP&B
links demand
to the
resources
needed to fulfil
that demand
and their unit
cost to model
key variable
expenses
Quick, light-touch reforecasts - as frequently as you want
Tighter alignment of capacity that falls straight to the P&L
Better insight that leads to more incisive actions
Less sandbagging that leads to greater accountability and improved accuracy
Improved productivity as contributors no longer have to maintain offline spreadsheets
Benefits
Level of expertise needed to write rules and maintain models
Upfront effort involved in building a driver based model
Inability of traditional budgeting solutions to cope with the increased data volumes
So What’s Holding Us Back?
WHAT YOU NEED FOR
DRIVER-BASED BUDGETING
PLANNING & BUDGETING
CHALLENGES
DRIVER-BASED PLANNING & BUDGETING
Our Session Today
To recalculates dependent values following the shortest sequence
CELL
TABLE For
transactional data
and to make it easy to modify
hierarchies
Containlots of data in a very compact form
CUBE
Dependency Tracking
What’s Needed to Deliver DBB
OPTIMAL ARCHITECTURE
• Optimal architecture for:
– Data volumes
– Processing rules in real time
• 64 bit In-memory calculation engine
• Multi-core parallel processing
OPTIMAL ARCHITECTURE
• Optimal architecture for:
– Data volumes
– Processing rules in real time
• 64 bit In-memory calculation engine
• Multi-core parallel processing
SELF MANAGEMENT
• Simple formulas in native syntax
• Drag-and-drop functionality
• Easy access to view and audit rules
What’s Needed to Deliver DBB
OPTIMAL ARCHITECTURE
• Optimal architecture for:
– Data volumes
– Processing rules in real time
• 64 bit In-memory calculation engine
• Multi-core parallel processing
SELF MANAGEMENTRAPID MODEL
BUILDING & QUICK TIME TO VALUE
• Simple formulas in native syntax
• Drag-and-drop functionality
• Easy access to view and audit rules
• Intuitive modelling interface
• Built in intelligence for time & hierarchy management
• Cloud based delivery
• Rapid implementation
What’s Needed to Deliver DBB
Copy current version
Amend rules,
hierarchies and time
periods
Run real-time iteration
s
Send to peers for review with
workflow
Adopt as latest
versionIf you’ve developed a DBB model, the last thing you want are users reverting to spreadsheets for ad-hoc scenario analysis
Using a DBB for “What-If?” Analysis
Want more information? Download the full recorded webinar: https://www.anaplan.com/webinars/driver-based-budgeting/
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