Making driver-based planning and budgeting work
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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/
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Making driver-based planning and budgeting work
- 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 Quote Conversion Rate % Avg. Premium $ # Renewed Policies # Current Policies Mid term Lapse Rate % Renewal Rate % # Total Policies # Quotes # New Policies Claims Frequency % # Claims Avg. Cost of Claim $ 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 Policies Mid term Lapse Rate % Renewal Rate % # Total Policies # Quotes # New Policies Claims Frequency % # Claims Avg. Cost of Claim $ Claims Agent Productivity # Claims Agents Needed Avg Cost of Claims Agents Expense Cost $ Other Expenses
- 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/
- 20. Sponsor
Editor's Notes
- 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.