Opex Planning Demo in Anaplan - Operational Expense Planning with Accelytics Consulting

Summary

This video demonstrates the versatility of Anaplan for operational expense (OpEx) planning, showcasing various methodologies such as driver-based, historical data adjustments, and zero-based budgeting (ZBB). It explores dashboards for COGS, G&A, R&D, and T&E planning, highlighting how Anaplan accommodates different forecasting techniques, growth assumptions, and global event impacts. The focus is on its customization, flexibility, and ability to merge top-down and bottom-up planning approaches, providing organizations with dynamic and accurate forecasting tools. The demo aims to illustrate Anaplan’s potential to optimize cost planning, improve forecasting accuracy, and give stakeholders greater confidence in their financial plans.

Takeaways

• 😀 Anaplan offers multiple methodologies for operational expense (OpEx) planning, including driver-based, historical actuals, and zero-based budgeting (ZBB).
• 😀 The tool's flexibility allows businesses to apply various planning techniques based on their specific needs and cost categories.
• 😀 COGS (Cost of Goods Sold) planning can be as simple as multiplying unit cost by quantity, offering an easy way to plan for product-based expenses.
• 😀 General and Administrative (G&A) planning leverages previous year's actuals with growth rates, and users can apply different spread methodologies for forecasting.
• 😀 Research & Development (R&D) planning involves taking historical data, then forecasting by percentage of sales, with the ability to override monthly expenses.
• 😀 The Travel & Expense (T&E) dashboard uses both driver-based forecasting and detailed, item-level planning for specific travel-related costs.
• 😀 Anaplan’s ability to integrate assumptions, such as global events, helps apply broad-based changes across cost centers, such as the impact of COVID-19.
• 😀 The platform supports customization at every level, allowing users to choose between top-down or bottom-up approaches for their expense planning.
• 😀 Anaplan’s flexibility allows planners to test different forecast scenarios, providing more confidence in their financial decision-making.
• 😀 Through line-item detail and subledger activity, Anaplan can capture both the big picture and granular details for precise OpEx planning.
• 😀 Anaplan empowers businesses to simulate different growth rates, overrides, and scenario planning, offering a robust approach to expense forecasting and management.

Q & A

What is the primary challenge when demoing Anaplan for OPEX planning?

The primary challenge is the versatility of Anaplan, as OPEX planning can be done in many different ways. The demo aims to show the wide range of possible approaches to OPEX planning within Anaplan, from simple calculations to complex driver-based models.

What does the COGS planning dashboard demonstrate in Anaplan?

The COGS planning dashboard demonstrates a basic approach to planning using unit costs and quantities (P x Q) for various products. It shows how costs can be calculated based on different hierarchies like product list, region, and time period.

How does Anaplan handle G&A planning in the demo?

In the demo, G&A planning uses previous years' actuals as a base, applying growth rates and spread methodologies to forecast future expenses. The system allows users to adjust forecasts based on trends like increased software maintenance costs due to remote work.

What role do historical actuals play in the demo's G&A planning process?

Historical actuals serve as the starting point for G&A planning. They are used to apply growth rates, which then inform future expense projections, allowing for accurate forecasts based on past spending patterns.

How does R&D planning differ from other types of OPEX planning in Anaplan?

R&D planning in Anaplan uses a similar method to G&A planning by taking prior period actuals, but it also allows for more flexible adjustments, such as applying percentage-based forecasts or overriding monthly forecasts based on anticipated changes in spending.

What is the key feature of the T&E planning dashboard in Anaplan?

The key feature of the T&E planning dashboard is its ability to combine driver-based planning (e.g., number of flights, conference trips) with zero-based budgeting (ZBB) for specific costs, such as airfare and hotel, allowing for both detailed and high-level forecasting.

How does Anaplan handle global event impacts, like COVID-19, in OPEX planning?

Anaplan allows users to apply global events, like the COVID-19 pandemic, as a universal assumption across multiple cost centers or GL categories. This feature makes it easier to account for significant, wide-ranging impacts on expenses.

What is the advantage of Anaplan’s assumption layering for OPEX planning?

Assumption layering allows users to create detailed assumptions at the GL category level, which can be adjusted for specific line items. This level of customization enables precise and flexible forecasting for different cost types and planning scenarios.

How does Anaplan support both bottoms-up and top-down approaches in OPEX planning?

Anaplan supports both approaches by allowing users to either input detailed line-item forecasts (bottoms-up) or apply high-level assumptions across larger categories (top-down). This flexibility enables businesses to model a variety of planning scenarios and adjust forecasts accordingly.

What does the final summary of the demo suggest about Anaplan’s capabilities in OPEX planning?

The final summary highlights Anaplan's versatility in OPEX planning, showing that the platform can be customized to suit different methodologies, such as simple calculations, growth rates, and complex event-based forecasting, while providing options for detailed overrides and scenario analysis.