The Anaplan scenario planning is a method of connected planning in which various outcomes may be modeled, compared for their effect on the business, and responses planned for through the use of the same planning system.
Rather than having one static plan, a company can make a number of scenarios based on various factors, such as a baseline scenario, best scenario, worst scenario, demand shock scenario, cost shock scenario, supply shock scenario, or market expansion scenario.
Anaplan scenario planning is different from forecasting. While forecasting predicts the probable future result using past and present information, scenario planning looks into more possibilities and guides management in making decisions in case something else happens.
If the business environment is filled with factors such as turbulent market environment, supply chain disruption, inflation, regulatory changes, and technological advancement, then relying on only one plan will not be advisable. With Anaplan modern scenario planning, businesses can adapt to all those aspects at once, as every change made automatically changes all other plans associated with it.
- Surface risks before they reach the P&L, rather than after
- Trade-off between competing strategies through quantitative analysis
- Alignment of finance, sales, ops, and HR to a common, constantly refreshed understanding of the enterprise
- Acceleration of decision-making cycles by creating response playbooks well in advance of disruptions
The CPG companies predict demand shifts, the retailers run experiments for channel changes, the pharmaceuticals include R&D and regulatory timelines, the manufacturers set the restrictions for their capacity, and the BFSI companies validate their capital and liquidity positions. The above mentioned are some of the most popular scenario planning cases across different industries and Anaplan enables all of them in one interconnected model.
- Identify the key uncertainties: They are the possible variables affecting the performance of the company, such as demand, cost of raw materials, foreign currency rates, regulation, supply, and customer behavior. In Anaplan, these are called model drivers impacting every plan.
- Develop distinct scenarios: Develop a small number of distinct scenarios, which normally consist of a baseline, a best, and a worst scenario, and worst case. Each scenario should be internally consistent and based on clear assumptions. Anaplan scenario modelling allows business users to build these scenarios without relying on IT.
- Quantify each scenario. Include financial projections based on income, cost structure, headcount, and inventories. Scenarios without any figures are just stories. Anaplan guarantees that each scenario is entirely quantified in terms of finances, people, and logistics.
- Observe how each of these scenarios impacts EBITDA, cash flow, and others. Identify where assumptions break. With Anaplan scenario analysis, the impact is visible across all connected plans instantly.
- Develop response playbooks. Pre-define decisions the business would take under each scenario.
- Refresh continuously. Update drivers as conditions shift. Scenario planning should be updated monthly and even more often in times of uncertainty. Following this scenario planning framework and process within Anaplan ensures that decisions remain grounded in current realities.
| Scenario Type |
Description |
| Base Case |
Most likely outcome based on current trends and stable assumptions. |
| Best Case |
Optimistic scenario where key drivers outperform expectations. |
| Worst Case |
A stress test for negative events like demand shock or cost increase. |
| Exploratory |
An investigation into possible structural changes like market entry or acquisition. |
All four scenario types can be modelled simultaneously in Anaplan, with results compared side by side in real time.
- Financial planning & Budgeting
Anaplan scenario planning is used by the finance department to create flexible budgets, rolling forecasts, and various forms of capital investment rather than sticking to a generic financial plan. Changes to any assumption update the entire financial model instantly.
- Demand planning
Demand planners apply scenario planning in Anaplan for the effect of market expansion, promotional campaigns, new SKU introduction, seasonal effects, and shifts in customer demands, with every scenario feeding directly into supply and financial plans.
- Supply chain planning
Supply chain executives apply Anaplan scenario planning to evaluate risks related to suppliers, rising logistics costs, capacity limits, and alternative supply sources, all connected to the broader enterprise model.
- Workforce planning
HR and finance teams create scenarios for workforce planning, hiring needs, costs of the workforce, and resource planning under different business scenarios, all within the same Anaplan environment.
As a trusted Anaplan Implemenation partner, Polestar Analytics uses the Anaplan platform for enterprise level scenario planning. Our approach to Anaplan scenario planning, Anaplan scenario modelling, and Anaplan scenario analysis involves designing the model structure, defining the drivers, and building the scenarios according to your company's real-world processes.
Polestar Analytics implements connected planning models within the Anaplan platform that integrate financials, sales, supply chain, and workforce management using anaplan api integration.
When any assumption changes, the impact propagates instantly across every linked plan. Business users can build and compare multiple scenarios in real time, with every version preserved for side-by-side analysis. Real-time scenario planning with Anaplan means that, Anaplan’s AI capabilities can support scenario planning by improving forecast inputs, accelerating insight discovery, and helping users explore planning data more easily.
Anaplan PlanIQ supports AI-powered forecasting, while CoPlanner helps users ask questions, explore insights, and act within the Anaplan environment.
This yields a process of scenario planning that operates constantly, belongs to the business owners, and provides the analysis necessary for executive decisions.
Forecasts predict the most likely future outcome based on experience. Scenarios present several possible futures and actions to take for each. Forecasts answer the question "What will happen?" while Anaplan scenario planning asks "What must we do if X happens?" and models the full financial impact across every function instantly.
Scenario planning should be utilized by business executives where there is a lot of uncertainty and where the consequences of a bad decision are high. Some of the examples are annual budgeting, market expansion, price change, supply chain disruption, manpower planning, capital management, and economic uncertainty. Anaplan makes it possible to run all of these scenarios on a single connected platform.
Scenario planning is usually led by finance or corporate planning, but it should not stay limited to finance. The most effective Anaplan scenario planning models involve sales, supply chain, operations, HR, and business leadership so that assumptions and decisions are connected across functions.
Scenario planning must be driven, measurable, cross-functional, and current. Effective scenario planning and analysis means scenarios must do more than simply show possible future scenarios; they must show the impact that these have on revenues, expenses, margins, cash flow, capacity, and staffing. Anaplan ensures all of this is visible in one place.
Failing to make sure that your scenarios differ from each other enough; taking the base case as the only true strategy; failing to integrate scenarios between different functional areas; and failing to update your assumptions. Anaplan addresses all of these by keeping scenarios connected, versioned, and continuously refreshable.