Why Planning on Top of Your Data Platform is the Right Way to do EPM

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Planning on top of your data platform means leveraging a unified, centralized data architecture to perform Enterprise Performance Management (EPM) activities such as budgeting, forecasting, and reporting with Data Analytics and reporting (BI). This also means leveraging existing investments in data platforms instead of having to invest in new ones to achieve your enterprise planning goals.

Why is this important? Over the past decade, there has been a significant shift among organizations toward adopting cloud-based data platforms, such as Snowflake or Databricks. This transition is driven by the immense need to efficiently manage and analyze vast amounts of data. So, instead of relying on disconnected tools or standalone systems that create even more data silos, organizations can utilize their existing data infrastructure, often built on cloud platforms, to ensure seamless integration between their planning processes and operational data. This increases the ROI from data platforms, and reducing Total Cost of Ownership (TCO) is only the beginning of how this is dramatically changing EPM.

This approach eliminates silos, enhances data accuracy, and enables real-time insights, ensuring that planning activities are grounded in the latest and most reliable information. By using a unified data platform, organizations can streamline their workflows, improve cross-functional collaboration, and achieve higher operational efficiency.

How Unified Data Platforms Transform Finance Operations

To illustrate this concept, imagine a retail company managing its inventory and sales forecasts. With a data platform-based approach, the company can seamlessly integrate real-time sales data, inventory levels, and market trends into its planning process. This allows the company to adjust its forecasts dynamically and optimize its supply chain operations. Such agility is not possible with traditional, disconnected planning systems.

The benefits for finance professionals

Finance professionals benefit significantly from this approach. Real-time insights enable faster decision-making while integrating operational data, improving financial models' accuracy. This approach reduces reliance on error-prone manual processes, giving finance teams confidence that their plans are based on the latest data. Moreover, centralized data platforms promote better collaboration across departments. Finance teams can efficiently work alongside operations, sales, and marketing teams to create cohesive plans. This alignment ensures that financial strategies support broader organizational goals.

The benefits for IT departments

Leveraging the existing data platform for EPM activities simplifies system management and reduces costs for IT departments. Maintaining separate systems for planning, reporting, and analytics often creates unnecessary complexity. By consolidating these activities on a single platform, IT departments can focus on optimizing one integrated solution. Modern data platforms are built to handle large and complex datasets, making them ideal for growing organizations. As companies expand and their data needs evolve, a unified platform ensures that planning processes can scale without extensive reconfiguration.

Traditional planning methods often relied on standalone software like spreadsheets or legacy EPM tools. While these tools served their purpose in the past, they created several challenges. Disconnected systems require manual data imports and exports, increasing the risk of errors and outdated information. Teams working in isolation often created misaligned plans, leading to inefficiencies. Consolidating data from multiple sources was time-consuming, delaying critical business decisions. By transitioning to planning directly on top of your data platform, organizations can overcome these challenges. Integrated workflows, automated processes, and real-time data access enable faster and more accurate decision-making.

Leveraging AI to Enhance Planning and Business Intelligence

Artificial Intelligence (AI) is revolutionizing EPM and business intelligence by introducing advanced capabilities that were previously unattainable. Predictive analytics help organizations anticipate challenges and opportunities by analyzing historical data to forecast future trends. For instance, predictive analytics can identify seasonal demand patterns, enabling better inventory planning. AI tools can process vast amounts of data to uncover patterns and anomalies. These insights are delivered automatically, saving time and allowing teams to focus on strategic activities. AI also enables organizations to simulate various scenarios and evaluate their potential outcomes. This capability is especially valuable in volatile industries where rapid changes impact financial performance.

Natural Language Processing (NLP) allows users to interact with planning tools using conversational language. This makes advanced analytics accessible to non-technical users, democratizing data-driven decision-making. AI algorithms improve over time as they process more data, delivering increasingly accurate predictions and recommendations. By embedding AI into EPM processes, organizations gain a competitive edge. They can respond to changes with greater agility, identify opportunities more effectively, and confidently make data-driven decisions.

Take Action: Realize the Full Potential of Your Data Platform

Planning on top of your data platform isn’t just a technological shift; it’s a strategic advantage that can redefine how your organization approaches EPM. By aligning finance and IT teams, streamlining processes, and integrating AI capabilities, you can:

• Enhance operational efficiency by automating workflows and reducing manual tasks.
• Foster cross-functional collaboration to create unified and actionable plans.
• Leverage predictive analytics to stay ahead of market trends and challenges.
• Ensure data security and compliance with centralized governance.

The path forward is clear: modernize your planning processes by embracing the ability to do all of it directly on top of your existing data platform. This eliminates data silos, helps consolidate your planning, reporting, and analytics and reduces TCO. Utilizing this approach improves efficiency and ROI of data platforms, positions your organization for long-term success in a dynamic and competitive landscape. Start exploring how your data platform can be the foundation for more innovative, faster, and more collaborative planning today.

See for yourself how planning on top of your data platform is possible with the Lumel suite here.