Gartner Market Guide for Cloud Extended Planning and Analysis Solutions

According to Gartner in the Market Guide for Cloud Extended Planning and Analysis Solutions (Penny, Anderson, Leiter, 16 January 2024), Cloud xP&A is a “maturing approach to enterprise planning that packages financial and operational planning on a single vendor platform. Application leaders should understand the relevant factors of how these solutions achieve this to enable continuous enterprise-wide planning and collaboration.”

 

Gartner recognized Representative Vendors for planning platform xP&A capabilities in the Gartner® Market Guide for Cloud Extended Planning and Analysis Solutions.   You can read licensed copy of the the full report (courtesy of Pigment) by clicking the link.

 

Key Findings

Dedicated XP&A solutions offer greater depth, according to Gartner.  Here are the key findings of Gartner’s research:

 

  • Integrated financial planning and other planning activities are required to improve planning accuracy and avoid siloed processes. Collaboration between finance and business stakeholders must expand to include more types of users with different skill sets.  This collaboration will lead to greater governance and improved workflow management.

 

  • A few best-of-breed solution providers and major ERP vendors offer extended planning and analysis (xP&A) embedded within their systems. These solutions may not have as much depth as dedicated functional solutions.

 

  • In addition, xP&A benefits include a unified platform that is easily scalable, composable and data driven. Adding new functions and leveraging new technologies will become more critical in the future.

 

 

Recommendations

According to Gartner, application leaders should do the following to use cloud xP&A effectively:

 

  • Define functional solution requirements by defining future planning needs before evaluating potential xP&A solutions. Set up planning governance processes and workflow sequences.

 

  • Leaders should also examine vendor platform offerings for cohesive, composable, data-harmonized solutions, prioritizing systems.  Ensure they can interoperate with other systems and use cloud APIs.

 

  • Moreover, organizations should assess interoperability with other company systems, utilize emerging technologies, and adopt industry-specific solutions to future-proof their choice of xP&A solution.

 

Although the best of breed operational planning solutions will continue to be popular, FP&A solutions will begin to incorporate some operational planning features as they evolve into xP&A, according to Gartner.  With xP&A, decision makers can gain a more holistic view of FP&A processes, results, and progress toward reaching an organization’s objectives and meeting strategic objectives beyond the finance domain. By 2025, xP&A requirements will drive more than 60% of planning solution initiatives.

 

 

 

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