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/
1. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Driver-based Budgeting and
Planning: Agility, Predictability, and
Alignment
Richard Barrett, Financial Software
Expert, Anaplan
2. WHAT YOU NEED
FOR DRIVER-BASED
BUDGETING
Our Session Today
PLANNING &
BUDGETING
CHALLENGES
DRIVER-BASED
PLANNING &
BUDGETING
3. Managing Volume, Complexity & Collaboration
In Real-Time
Planning, Budgeting
& Forecasting
Sales Forecasting
Territory & Quota Planning
Planning Sales Capacity Planning
Incentive &
Compensation
Configure, Price
& Quote
Demand Planning
Strategic Financial
Cash Flow Planning
Profitability
Analysis
SKU Level Forecasting
Financial
Consolidation
OPERATIONS
FINANCE
HR
Integrated Business Planning
Project Resource Planning
Workforce Planning
SALES
CAPEX Planning
Trade &
Promotional
Planning
10
locations
worldwide
100+
global & local
partners
100+
apps &
accelerators
1 trillion+
cells in our
models
Patented
technology
Hyperblock™
Founded in
2007
175+ global
customers
20,000+
engaged users
3x revenue
growth in 2013
$150M
in funding
4. WHAT YOU NEED
FOR DRIVER-BASED
BUDGETING
Our Session Today
PLANNING &
BUDGETING
CHALLENGES
DRIVER-BASED
PLANNING &
BUDGETING
5. Challenges with Budgeting Today
1 Takes too long &
Cannot reforecast
costs too much
2 as frequently as
3 4 desired
[OR NEEDED TODAY]
Not accurate
enough
Always out
of date
6. Challenges with Budgeting Today
1 Takes too long &
Cannot reforecast
costs too much
2 as frequently as
3 4 desired
[OR NEEDED TODAY]
Not accurate
enough
Always out
of date
…and during this time many organizations have moved away from spreadsheets!
7. BUDGET P&L
Total Premium
$
Total Cost of
Claim $
Line Item
Expenses $
Unifying Planning With Budgeting
8. BUDGET P&L
Total Premium
$
Total Cost of
Claim $
Line Item
Expenses $
Unifying Planning With Budgeting
# Hits on
website
% Complete
Quote
Conversion Rate
%
Avg. Premium $
# Renewed
Policies
# Current
Policies
Mid term Lapse
Rate %
Renewal
Rate %
# Total Policies
# Quotes
# New
Policies
9. BUDGET P&L
Total Premium
$
Total Cost of
Claim $
Line Item
Expenses $
Unifying Planning With Budgeting
# Hits on
website
% Complete
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Conversion Rate
%
Avg. Premium $
# Renewed
Policies
# Current
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Claims Agent
Productivity
# Claims Agents
Needed
Avg Cost of
Claims Agents
Expense Cost $
Other Expenses
10. Unifying Planning With Budgeting
OPERATION PLANNING
Typically done outside of Enterprise FP&A solution
BUDGET P&L
Total Premium
$
Total Cost of
Claim $
Line Item
Expenses $
# Hits on
website
% Complete
Quote
Conversion Rate
%
Avg. Premium $
# Renewed
Policies
# Current
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11. “
DBP&B links
demand to the
resources needed
to fulfil that
demand and their
unit cost to model
key variable
expenses
”
Benefits
12. “
DBP&B links
demand to the
resources needed
to fulfil that
demand and their
unit cost to model
key variable
expenses
”
Benefits
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
13. So What’s Holding Us Back?
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
14. WHAT YOU NEED
FOR DRIVER-BASED
BUDGETING
Our Session Today
PLANNING &
BUDGETING
CHALLENGES
DRIVER-BASED
PLANNING &
BUDGETING
15. CELL
CUBE
To recalculates dependent
values following the shortest
sequence
TABLE
For
transactional data
and to make it
easy to modify
hierarchies
Contain
lots of data in a
very compact
form
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
16. 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 MANAGEMENT
• Simple formulas in native
syntax
• Drag-and-drop
functionality
• Easy access to view and
audit rules
17. OPTIMAL ARCHITECTURE
• Optimal architecture for:
– Data volumes
– Processing rules in
real time
• 64 bit In-memory
calculation engine
• Multi-core parallel
processing
SELF MANAGEMENT
RAPID 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
18. Using a DBB for “What-If?” Analysis
Copy
current
version
Amend
rules,
hierarchies
and time
periods
Run
real-time
iterations
Adopt as
latest
If you’ve developed a DBB version
model, the last thing you
want are users reverting
to spreadsheets for ad-hoc
Send to
peers for
review
with
workflow
scenario analysis
19. Want more information? Download the full recorded webinar:
https://www.anaplan.com/webinars/driver-based-budgeting/
Objective:
Set the tone for the meeting. Set the prospect’s expectations on what you want to get out of the meeting and get their buy in that they are willing to spend the next half hour/hour with you.
Talk Track:
Hi [prospect’s name]. Thanks for taking my call/meeting.
Confirm how much time you have.
- I’ll start out with a brief overview of Anaplan.
I’m then most interested in learning about your current solution and any challenges you may be experiencing.
- After I learn more about your goals and requirements, I can walk you through how Anaplan can best help you accomplish your goals. I will also be demoing our dashboard.
Does this sound like a good way to spend our time together? If you have different priorities for the hour I’d be happy to address them.
Objective: Dive into Anaplan’s unique value proposition across the enterprise.
Talk Track: Anaplan has enabled companies across the globe to solve for key challenges across their organizations from sales to finance to operations and more. We are purpose-built to manage massive volumes of data, high degrees of model & process complexity while enabling large numbers of people to collaborate on a single source of truth.
Bottom Line:
Anaplan is unparalleled in its ability to solve the challenges of large scale organizations.
Objective:
Set the tone for the meeting. Set the prospect’s expectations on what you want to get out of the meeting and get their buy in that they are willing to spend the next half hour/hour with you.
Talk Track:
Hi [prospect’s name]. Thanks for taking my call/meeting.
Confirm how much time you have.
- I’ll start out with a brief overview of Anaplan.
I’m then most interested in learning about your current solution and any challenges you may be experiencing.
- After I learn more about your goals and requirements, I can walk you through how Anaplan can best help you accomplish your goals. I will also be demoing our dashboard.
Does this sound like a good way to spend our time together? If you have different priorities for the hour I’d be happy to address them.
Objective: Introduce the platform and its three essential components—in-memory database, built-in intelligence, spreadsheet-like immediacy, blueprints & apps, and cloud delivery.
TO DIVE INTO INDIVIDUAL SECTIONS CLICK ON THE ICON
Talk Track: In order to deliver the immediacy and scale needed to keep pace with today’s market environment, Anaplan has created an in-memory platform that first and foremost empowers the Business User.
How?
In-memory database – we built our platform on an in-memory database purpose-built to manage transactional data and multi-dimensional models.
2) Built-in intelligence – our platform comes out of the box with all the modeling and planning essentials a Business User needs: time & hierarchy management, version control, collaborative, workflow, auditability, and more!
3) Spreadsheet-like immediacy – Anaplan has a spreadsheet-like front-end that enables Business users to modify and maintain models… while delivering ability to complete immediate calculations and what-ifs.
4) Blueprints & apps – Get started quickly with pre-built templates and community best practices.
5) Cloud delivery – Anaplan is delivered via the cloud which enables ease of data integration across your systems, availability to users anytime, anywhere.
Bottom-line: Anaplan is the only modeling and planning platform available the provides this level of Power, Immediacy, Connectedness and Trust to the Business User
Objective: Introduce the platform and its three essential components—in-memory database, built-in intelligence, spreadsheet-like immediacy, blueprints & apps, and cloud delivery.
TO DIVE INTO INDIVIDUAL SECTIONS CLICK ON THE ICON
Talk Track: In order to deliver the immediacy and scale needed to keep pace with today’s market environment, Anaplan has created an in-memory platform that first and foremost empowers the Business User.
How?
In-memory database – we built our platform on an in-memory database purpose-built to manage transactional data and multi-dimensional models.
2) Built-in intelligence – our platform comes out of the box with all the modeling and planning essentials a Business User needs: time & hierarchy management, version control, collaborative, workflow, auditability, and more!
3) Spreadsheet-like immediacy – Anaplan has a spreadsheet-like front-end that enables Business users to modify and maintain models… while delivering ability to complete immediate calculations and what-ifs.
4) Blueprints & apps – Get started quickly with pre-built templates and community best practices.
5) Cloud delivery – Anaplan is delivered via the cloud which enables ease of data integration across your systems, availability to users anytime, anywhere.
Bottom-line: Anaplan is the only modeling and planning platform available the provides this level of Power, Immediacy, Connectedness and Trust to the Business User
Objective:
Set the tone for the meeting. Set the prospect’s expectations on what you want to get out of the meeting and get their buy in that they are willing to spend the next half hour/hour with you.
Talk Track:
Hi [prospect’s name]. Thanks for taking my call/meeting.
Confirm how much time you have.
- I’ll start out with a brief overview of Anaplan.
I’m then most interested in learning about your current solution and any challenges you may be experiencing.
- After I learn more about your goals and requirements, I can walk you through how Anaplan can best help you accomplish your goals. I will also be demoing our dashboard.
Does this sound like a good way to spend our time together? If you have different priorities for the hour I’d be happy to address them.