As an exinvestment banker having joined a finance team the concept of drivers when talking about a forecast. Expected return on investment choicebased planning. So, yes, its smart to be thinking about how you can encourage buyin for driverbased planning to assure that you reap the maximum benefit of the approach. The four phases of building a scenariobased planning. As an exinvestment banker having joined a finance team the concept of drivers when talking.
Deloitte sap integrated business planning, moscow agenda topic content person responsible timing introduction deloitte capabilities robert kepczynski deloitte 1 min making an impact customers experience and use cases robert kepczynski deloitte 20 min. The sap bpc platform cover all major planning areas including driver based planning, cost centre planning, funds management and project planning. Provides stepbystep guidance on implementing and using a valuebased management system within the government countless books on proposed management practices have been written. Lakshmanan g associate director deloitte india linkedin. The financial consolidation platform supports three parallel consolidations and manages both internal and external reporting requirements, including nsw treasury reporting. Driverbased planning is also highly valuable in helping executives understand the true valuedrivers or levers of their business, and how changes in these drivers can impact future. Leader in deloitte s finance practice, focussing on driving value in our clients finance and tax functions through transformational projects often underpinned by the implementation of digital finance technology dft. Forecast the future with the power of integrated planning. Implementing driverbased forecasting is something you can set up in a spreadsheet environment for the purposes of scenario analysis with a very small, limiteduse footprint. Abhay mittal senior consultant deloitte consulting. Dttl and each of its member firms are legally separate and independent entities. Neubrains powerful driver based planning and cost modeling solution incorporates a best practice methodology that bases financial forecasts on operational drivers.
Unprecedented is a term used to describe the global crisis by those who have been unprepared with scenario planning, driverbased modeling capabilities, or sufficient external. As an exinvestment banker having joined a finance team the. Oct 29, 2014 the amount of upfront effort required to build a driver based budgeting model. However, more advanced risk driver analyses and quantitative risk. The amount of upfront effort required to build a driverbased budgeting model.
Standard variance analyses selfservice analysis automated planning and forecasting, incl. How to increase buyin for driver based planning encouraging buyin for driver based planning helps assure teams that theyll reap the maximum benefit of the approach. In 1981 gary began his management consulting career first with deloitte consulting. It uses mathematical and linked relationships to create detailed budgeting, forecasting and planning models with fewer inputs than traditional models, while. Jun 19, 2019 this model minute demonstrates how driver based planning can be performed within anaplan. Dttl also referred to as deloitte global does not provide services to clients. Typically detached from business operations and strategic planning goals, the annual budget suffers from inherent weaknesses caused by a lack of business intelligence regarding its underlying assumptions. Driver based planning, on the other hand, bases budgets and financial forecasts on operational drivers such as units of product, ftes, customers, deliveries, transactions, etc. Its one area where the rules are the rulesand you have to live with them no matter what.
How do you deliver analytics in an effective manner from a. About driverbased planning, trendbased planning, and. An optimal architecture, the ability to selfmanage, and quick time to value were three key items he listed, and luckily, todays technology has evolved to deliver all of these. An optimal architecture, the ability to selfmanage, and quick time to value were. John hemenway directors sm strategy and management. A synchronized planning and fulfillment strategy can help facilitate the endtoend planning, production, and distribution of products and services. The concept of planning and budgeting came centuries later. Typically detached from business operations and strategic planning goals. This is the final report of the management and organizational structure study performed by deloitte for the texas department of public safety. Riskbased forecasting and planning and management earnings forecasts christopher d. May 01, 2015 driver based budgeting and rolling financial forecasts. Replacing the annual budget with business intelligence driver. The use of driverbased planning is a budgetary approach designed to directly.
Expected return on investment choicebased planning 3. Making driverbased budgeting and planning work anaplan. Oracle hyperion planning data sheet driverbased planning an approach that bases financial forecasts on operational drivers, deloitte, feb, 2009 driverbased planning, in which. We help reinforce public trust in our capital markets, inspire clients to make their most challenging business decisions with confidence, and help lead the way toward a stronger economy and a healthy society. Scenario planning application enables a company to rapidly simulate the financial results of possible external and internal influences on business performance with planning drivers, realtime whatifs based on changes in drivers and assumptions, and. Synchronized planning and fulfillment services deloitte us. Driver based planning is also highly valuable in helping executives understand the true valuedrivers or levers of their business, and how changes in these drivers can impact future business outcomes. To achieve the strategic goals, the impact of real performance drivers. Managed a team of consultants to deliver on three work streams viz. How do you deliver analytics in an effective manner from a shared services or gbs organisation.
How might driverbased forecastingan approach that bases financial forecasts on operational driverssupport your companys performance management. I am actively involved in projects as a project director and subject matter expert, with particular focus on driver based planning and forecasting, financial consolidation and reporting, and. To learn more, contact our team and get started with driver based planning. Follow these five steps to get both executives and business partners on board. Cost optimization for the largest oil exploration and production company in oman a. Internal and external factors that influence your business driverbased planning. This model minute demonstrates how driver based planning can be performed within anaplan. Oracle hyperion planning data sheet driverbased planning an approach that bases financial forecasts on operational drivers, deloitte, feb, 2009. Our solution uses mathematics and linked relationships to create budgeting, forecasting and cost models. If you continue browsing the site, you agree to the use of cookies on this website. Implementing driver based forecasting is something you can set up in a spreadsheet environment for the purposes of scenario analysis with a very small, limiteduse footprint. With driverbased planning capabilities, nonfinancial users can enter business and operational drivers, while sophisticated business rules will then calculate their financial impact. About driverbased planning, trendbased planning, and direct.
Deloitte refers to one or more of deloitte touche tohmatsu limited, a uk private company limited by guarantee dttl, its network of member firms, and their related entities. The fixed annual budget process can be a cumbersome and static process, often failing to deliver intended benefits. Driver based forecasting allows users to effectively predict and estimate business drivers and immediately evaluate the financial impacts of those decisions. Services analytics and consulting data is better with tableau. Armed with this strategic roadmap, organizations can more readily evolve their supply chain capabilities to make fulfillment personal, commerce seamless, technology invisible, and trust automatic. Driverbased planning can be a gamechanger for your organizationbut only if everyone is in on the game. The goal of driver based planning is to focus business plans upon the criteria that are most capable of driving success. We are seeking exceptional pretoria based candidates for the usaid southern africa energy program saep. The inability of traditional budgeting solutions to cope with large amounts of data. Find answers, share solutions, and connect with anaplan users and planning thought. One approach businesses use for achieving this goal is the concept of.
When i first came across the term driver based planning and forecasting i was confused. Such processes include driver based allocations, eliminations, conversions, consolidations, initializations, top down and bottomup reconciliations, value calendarization, multidimensional calculations and, more generally, all the necessary operations to implement companywide planning, forecasting, simulation applications. The flexibility and scalability of cloud based platforms mean they can serve as a basis for financial, commercial as well as operational planning models. But to get even more value from driver based forecasting you need an integrated platform where you can see the consensus forecast across the company, measure performance.
This second part of a twopart series discusses four key phases of scenario based planning and how cfos and their finance teams can use econometrics to establish effective action. Barrett then demystified what is actually required to deliver driverbased budgeting and planning. Effective succession management tied to strong employee engagement and retention organizations push formal talent and succession planning further. With scenariobased planning, cfos have a tool to help their organizations prepare for, and respond to, a range of known and unknown threats, from market challenges and. Its approach requires organizations to build their annual budget from zero. Utilizing business intelligence supported, driverbased rolling forecasting can align an. Oct 25, 2018 zero based budgeting zbb is a methodology that helps align company spending with strategic goals. The flexibility and scalability of cloud based platforms mean they can serve as a basis for financial, commercial as well as operational. Services is an industry based on aligning people and their expertise to the right projects to drive insights for their clientsat a profit. Driverbased planning is an approach to management that identifies an organizations key business drivers and creates a series of business plans that mathematically model how those.
Driver based planning and forecasting forecast future spend and conduct driverbased e. Driverbased planning and cost modeling software solution. The exact circumstances of the hack of big 4 accounting firm deloitte arent known, but evidence suggests the company was among many that fail to prevent leaks of. Driverbased planning uses key business and value drivers to create business plans and budgets, and to model different business scenarios. Driverbased planning is rooted in the concept of modeling and that budgetary line items within a plan have an intrinsic blueprint that forms the basis of linking activity drivers to financial. Built a driver based opex and capex budgeting model and implemented the same across plants and corporate office 2. The use of driver based planning is a budgetary approach designed to directly affect managerial decisionmaking. Barrett then demystified what is actually required to deliver driver based budgeting and planning.
Driverbased budgeting and rolling financial forecasts. Includes driverbased and predictive forecasting models. Rethinking planning, budgeting, and forecasting wsj. Driverbased enter global rate assumptions and other assumptions for example revenue drivers or expense drivers to take advantage of builtin accounts and calculations to drive the planning process. Predictive analytics enables companies to produce consistent and wellunderstood metrics reports based on internal and external information available across the organisation. Some of these have focused on specific management practices for government. Inmemory computing offers the possibility to model different whatif scenarios in real time and immediately evaluate the final outcome.
See the complete profile on linkedin and discover lakshmanans connections and jobs at similar companies. Zerobased budgeting zbb is a methodology that helps align company spending with strategic goals. Driverbased planning and cost modeling reduce errors, save time, and drive success. Thus, he said, driver based planning is the process of using those metrics to drive outcomes. Its approach requires organizations to build their annual budget from zero each year to help verify that all components of the annual budget are costeffective, relevant, and drive improved savings. Such processes include driverbased allocations, eliminations, conversions, consolidations, initializations, top down and bottomup reconciliations, value calendarization, multidimensional. The following section will explore this topic and how driver based planning is implemented within a rolling forecast context. What makes driverbased planning dbp and budgeting an intriguing option to many organizations is that it looks at the key drivers from operational activities as the main source of information for the management teams strategic decisions. Deloitte hack underscores risk of credential leaks.
Replacing the annual budget with business intelligence. Financial management, driver based planning, consolidation and reporting, profitability. Create endtoend visibility with improved supply chain planning. Learn how to forecast expense accounts using drivers while also viewing the realtime, flexible. So, yes, its smart to be thinking about how you can encourage buyin for driver. Driverbased planning is an approach to planning and management that is focused on identifying an organizations key business and value drivers and then creating business plans and budgets based on these key drivers.
Users from various areas across the organization can readily use anaplan to input a portion of the forecast, to enable realtime sharing of data across planning processes. How to increase buyin for driverbased planning encouraging buyin for driverbased planning helps assure teams that theyll reap the maximum benefit of the approach. Apr 06, 2020 unprecedented is a term used to describe the global crisis by those who have been unprepared with scenario planning, driver based modeling capabilities, or sufficient external data sources. Dynamic driverbased forecasting cognitive computing and inmemory enables advanced planning and forecasting models to mine databases and perform realtime scenario analyses, uncovering predictive trends and generating key data insights. Leader in deloittes finance practice, focussing on driving value in our clients finance and tax.
Predictive planning finance transformation deloitte us. Deloitte our people work across more than 20 industry sectors with one purpose. Riskbased forecasting and planning and management earnings. To allow management to make timely decisions and interventions based on a realistic. Percentage of overall budget or other point of reference spendbased planning. As an exinvestment banker having joined a finance team the concept of drivers when talking about a forecast or plan was simply assumptions. But when it comes to planning, budgeting, and forecasting, you.
Babies, bathwater, and best practices rethinking planning. Mar 02, 2020 deloitte consulting overseas projects llc seeks individuals who have a passion for making a difference in the lives of people in the southern african region and demonstrate leadership, versatility and integrity in their work. Create endtoend visibility with improved supply chain. The four phases of building a scenariobased planning model. Sep 11, 2012 with scenario based planning, cfos have a tool to help their organizations prepare for, and respond to, a range of known and unknown threats, from market challenges and currency volatility to global paradigm shifts. Deloitte consulting overseas projects llc seeks individuals who have a passion for making a difference in the lives of people in the southern african region and demonstrate. The patientbased sales forecasting app for the pharma industry combines a driverbased approach with statistical methodologies to forecast sales in different therapeutic areas. Driverbased planning, on the other hand, bases budgets and financial forecasts on operational drivers such as units of product, ftes, customers, deliveries, transactions, etc. Dynamic driverbased forecasting cognitive computing and inmemory enables advanced planning and forecasting models to mine databases and perform realtime scenario analyses. In more recent decades, the topics of strategic planning, performance management, cost management and. Driver based planning, consolidation and reporting, profitability and cost. Babies, bathwater, and best practices rethinking planning, budgeting, and forecasting 3 regulatory reporting and compliance is a requirement that is not likely to get lighter anytime soon. But to get even more value from driverbased forecasting you need an integrated platform where you can see the consensus forecast across the company, measure performance against drivers, and run a distributive process. Agenda for today the objective of zbb the payoff 1 2 3 zbb vs.