Choosing the right EPM/IBP tool: Beyond the basics
Author: Piotr Weremczuk is a Certified Master Anaplanner and Manager at Deloitte.
Throughout my career, I have guided both large corporations and smaller enterprises in selecting Enterprise Performance Management (EPM) and Integrated Business Planning (IBP) tools. A recurring pattern I’ve noticed is that most clients focus mainly on three aspects: planning functionalities, appealing dashboards, and price. While these are important considerations, there is much more to evaluate when making such a significant investment. In this post, I’ll share insights on what truly matters when selecting an EPM/IBP tool or vendor, including some often-overlooked aspects.
Starting with the basics
The basics — planning functionalities, user experience, and price — are important, so let’s dive deeper into why they matter and what to look for.
Planning and Reporting Functionalities
It goes without saying that you’re looking for a tool to streamline planning and reporting. However, it’s crucial to differentiate between reporting for planning purposes and enterprise performance tracking versus business intelligence (BI). Planning tools should:
- Bring data, people, and processes together.
- Enable collaboration and deliver real-time results.
- Support capabilities such as scenario planning and drill-downs.
Having a highly available single source of truth is often more critical than advanced data analysis capabilities when it comes to planning, especially in integrated planning contexts. Uniting various business units helps streamline processes, and when combined with real-time calculations, this creates an ideal setup for driving business value.
It’s important to differentiate between BI and IBP tools. While they may appear similar, their analytical focus sets them apart. BI tools primarily derive insights from existing data, whereas IBP tools emphasize collaboration and scenario creation to enable better foresight for future decisions.
User Experience (UX)
A modern, intuitive UX is about much more than just attractive dashboards. It’s about adaptability and usability, particularly during the transition from older technologies. Change management plays a significant role here. If users find the tool overly complex, they may resist adoption, jeopardizing implementation success. Investing in a user-friendly interface can drive adoption and reduce friction.
Functionalities like workflows, comments, or mentions enhance contribution and collaboration, which are crucial in integrated business planning. These processes require joint efforts to create a unified business vision and achieve common goals.
Mobile access is also essential. In today’s world, having the ability to check forecasts or update plans from your phone — whether waiting for a plane or during other downtime — is no longer a luxury but a necessity.
Price
Price considerations go beyond licensing fees. Other factors to evaluate include:
- Infrastructure costs: Will the tool be hosted on-premise, or is it cloud-based?
- Implementation costs: Low-code/no-code platforms may be more cost-effective.
- Maintenance costs: Will you establish an internal Center of Excellence (CoE) or rely on external vendors?
With the rise of cloud technology, on-premise solutions for planning are becoming rare. Planning, especially integrated business planning, demands high availability to promote collaboration. Hence, cloud implementations are often the way to go.
Implementation costs can vary significantly. However, using low-code or no-code platforms can reduce the time to value. This approach, proven effective in web development, also applies to integrated business applications.
Maintenance costs and continuous improvements should also be considered. Selecting a planning tool usually results in a multi-year commitment. You must think strategically about how to handle future maintenance and updates—whether in-house or via external vendors.
Beyond the basics: Often overlooked aspects
While functionalities, UX, and price are foundational, here are some equally important but frequently overlooked factors.
Integration with existing systems
Many businesses already rely on ERP, CRM, and other specialized tools. The EPM/IBP solution you choose must integrate seamlessly with these systems. Ask yourself:
- Does the tool support APIs for smooth data exchange?
- How well does it integrate with existing tools like SAP, Oracle, or Microsoft Dynamics?
- Can it accommodate legacy systems without significant overhauls?
Lack of integration can lead to siloed data and hinder the potential of your investment. Automation of data feeds reduces errors, ensures data quality, and speeds up processes. Moreover, consider data security: does the tool meet your security requirements and comply with market standards? Protecting your data is paramount.
Scalability
A good tool should grow with your business. Avoid tools that suit current needs but become obsolete as your company evolves. Adding new markets or brands should be a straightforward update rather than a complex challenge. Changing business logic within the application must be quick and efficient to keep pace with ever-changing demands. A tool should support, not hinder, your business growth.
Vendor’s proven track record
The vendor is as important as the tool itself. Choosing a vendor means finding a reliable partner for several years. Opting for a lesser-known or unstable vendor might seem cost-effective initially, but poor support or a failed product can be disastrous. Consider:
- Do they have a solid reputation and positive client reviews?
- Are they financially stable?
- Do they have industry experience?
Strategically select a vendor who will be a strong partner, knowledgeable about your industry, and committed to supporting your success.
Support and community
Beyond reputation, examine the resources a vendor provides. Strong support and an active community make a significant difference. Look for online training, forums, and documentation. An engaged community can provide invaluable tips and best practices.
On the support front, ensure the vendor offers dedicated resources, such as a network of partners or internal teams. This commitment reflects their seriousness about being a reliable partner.
Vision and roadmap
The vendor’s future roadmap is critical. A forward-thinking vendor adapts to technological advancements and maintains a transparent development plan. Regular feature introductions and active investments in tool capabilities ensure the application grows alongside your business. Vendors who prioritize innovation indirectly benefit your business as well.
Implementation partner
Whether the vendor offers implementation services, or you hire a third party, working with experts who understand your industry is essential. A strong implementation partner provides guidance on process transformation and change management while offering technical expertise and post-implementation support.
Treat IBP tool implementation as a comprehensive planning transformation. Transitioning from Excel-based planning to a proper IBP tool is a significant change, requiring careful management and process design. Choose a partner who can support both technical and transformational aspects.
Why I recommend Anaplan
From my experience, Anaplan is among the best IBP tools, addressing many of the considerations outlined. While no tool fits every business perfectly, Anaplan excels in scalability, ease of use, and vendor support. As a pioneer in integrated business planning, Anaplan continues to lead by showcasing what’s possible in planning platform development.
Recent investments highlight Anaplan’s dedication to improvement, with a promising roadmap featuring ready-to-use applications, generative AI integration, and tools for seamless data orchestration. Anaplan’s proven track record includes global adoption by leading companies, often for multiple use cases. In my personal experience since 2016, none of my clients have regretted their investment in Anaplan.
Final thoughts
When selecting an EPM or IBP tool, it’s easy to focus on price and features, but deeper evaluation reveals where real value lies. Consider integration, security, vendor reliability, and scalability to ensure your business maximizes its investment. By assessing these aspects, you can make a decision that meets immediate needs and positions your business for future success.