SAP now offers various tools for the implementation of planning applications. Two of these are::
- The well-established BPC (Business Planning & Consolidation) variant, which offers very flexible options and is operated on-premise based on an SAP BW system.
- The newer Cloud-based variant via the planning component of SAP Analytics Cloud – SAC.
But when does which tool make sense? Which planning requirements can be implemented with which tool? – All questions that come up when it comes to deciding on the tool.
Simple questions - complex answers
As always, there are no easy answers to questions that seem easy to answer. This is certainly true with the question of whether SAP Analytics Cloud or SAP BPC is the better option. The answer here has to be: “It depends!”. And here it depends on what planning scenario I want to map. In this article, I would like to roughly break down three possible scenarios to illustrate when you should use which tool.
Scenario 1: Mapping of corporate planning as a whole
This scenario is the most complex of all three. It involves the integration of the planning for the various organizational units. As well as providing corporate management support through a complete overview of all of the subsystems. The key requirements for a system to map corporate planning can then also be derived from this:
- Process and workflow control are relevant.
- The possibility of integrating operational budgets must exist.
- The possibility of central control is important.
The complexity of this scenario makes it necessary for the IT department to be on board and provide support from the outset.
Scenario 2: Mapping of departmental planning or planning in an SME
If you only want to map a subsection, such as the planning for a department or the planning in an SME, instead of corporate planning as a whole, then it becomes easier. In this scenario, you are dealing with a less complex planning process with fewer operational budgets that need to be integrated.
If you want to map such a scenario, it is extremely important that the departments concerned also have control over the actual planning or that the department is familiar with IT.
Scenario 3: Mapping of agile planning scenarios (forecasts)
In a VUCA world* with constantly changing economic conditions, agile planning scenarios are becoming increasingly important.
Planning forecasts are mapped at monthly or three-monthly intervals based on annual planning. These forecasts work with probabilities and what-if simulations and make use of AI and machine learning capabilities. In this scenario, the department can run through future scenarios independently and make flexible adjustments without affecting the entire process.
*VUCA is an acronym that refers to “volatility”, “uncertainty”, “complexity” and “ambiguity”.
In the following graphic, we have allocated the three scenarios to the appropriate tools. It is important to note that this represents the status quo (July, 2021). SAP Analytics Cloud for Planning is under continuous development. It is worth keeping up to date with the development of new functions here.
Our checklist helps you determine which planning tool is right for your company. In addition to SAC and BPC, we have also included SAP Datasphere.
Checklist: Comparing SAP BPC, SAP Analytics Cloud & SAP Datasphere
Use our checklist to identify which SAP planning solution best fits your company’s needs.
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Seamless Planning with SAP Analytics Cloud and SAP Datasphere
The combination of SAP Analytics Cloud (SAC) and SAP Datasphere provides a powerful platform for implementing modern, integrated financial planning—also known as Seamless Planning. These two solutions work together in a complementary way.
SAP Analytics Cloud serves as the centralized frontend for planning, analysis, and reporting. Its key planning functionalities include:
Planning and Forecasting
SAC allows modeling of P&L, balance sheet, and cash flow in an integrated data model. It supports rolling forecasts, scenario planning, and simulations, and offers functionalities for collaborative planning.Self-Service and Simulation
Business users can independently enter planning values and run simulations. Real-time simulations via natural language queries are also possible (e.g., “What happens if raw material prices increase by 10%?”).Visualisation and Reporting
Dashboards can be created in SAC for the CFO, management, and business units, combining actuals, plans, and forecasts in a single report.
SAP Datasphere acts as the central data management and integration layer, offering the following capabilities:
Data Consolidation
It connects both SAP and non-SAP systems, delivering high-quality, consistent data models to SAC in real time.Semantic Modeling
Data models are enriched with business logic, allowing business users to work with meaningful business objects rather than raw tables.
The practical implementation of integrated financial planning using SAC and Datasphere could look like this: In the first step, SAP Datasphere models consolidated data from S/4HANA, BW, or non-SAP systems into semantic views. These views are then connected to and transferred to SAC. Users then enter their planning values directly in SAC. Through the integration of financial logic (planning models and rules within SAC), these planning values automatically flow through the planning areas (P&L → Balance Sheet → Cash Flow). Dashboards display actual vs. plan values, variances, or scenarios, and the plan can be adjusted immediately. Optionally, the planning data can also be seamlessly transferred back to Datasphere.
The advantages of this combination include a reduction in manual export tasks and the elimination of time delays in planning due to real-time data access. It also establishes a single source of truth by using a unified data foundation for planning, analysis, and reporting. Another benefit is the support for collaborative planning, allowing multiple departments to work simultaneously within the same model.
In conclusion, the combination of SAC and Datasphere enables modern, integrated financial planning that is enterprise-wide, real-time, consistent, and flexible enough to adapt to changing market conditions.
SAP BPC
SAP BPC is a software solution for enterprise planning, budgeting, forecasting, and consolidation. It could be operated either on the SAP NetWeaver (BW-based) platform or the Microsoft (MS SQL Server) platform, depending on the edition. For many years, SAP BPC was the standard SAP tool for integrated financial planning, particularly in large enterprises.
However, SAP BPC is no longer being developed strategically. SAP has discontinued further development of BPC and is now focusing on SAP Analytics Cloud (SAC) in combination with SAP Datasphere or S/4HANA Finance for Group Reporting. As a result, new customers are generally recommended to use SAC Planning. Nevertheless, there are still business scenarios where the use of BPC remains appropriate.
SAP Integrated Business Planning (IBP)
SAP Integrated Business Planning (SAP IBP) is a cloud-based planning platform specifically designed for supply chain and sales/demand planning. It supports companies with integrated, enterprise-wide planning across the entire value chain and, when combined with financial systems, can also contribute to comprehensive integrated financial planning.
SAP IBP provides input data for financial planning and control—particularly in the form of operational drivers that can be translated into financial values. It works hand in hand with SAP Analytics Cloud (SAC) to enable fully integrated business and financial planning. A typical system landscape might look as follows:
- SAP IBP: Operational planning – sales, production, supply chain
- SAP Analytics Cloud: Financial planning – revenue, costs, P&L, balance sheet, cash flow
- Datasphere: Data integration, harmonisation, governance
- S/4HANA: ERP data source for actuals, master data, cost structures
SAP IBP is not a replacement for traditional financial planning systems but a strategic component in a modern, integrated planning landscape.
In combination with SAP Analytics Cloud (for financial planning) and SAP Datasphere (for data integration), SAP IBP enables true end-to-end planning, where operational business and finance are seamlessly connected.
How can we support you?
We support companies in transforming their (financial) planning processes through clearly structured service packages tailored to their specific starting point. Before launching a transformation project, we recommend our xP&A workshop series: together, we assess the maturity of your current planning processes, identify weaknesses in tools, processes, and alignment, and engage all relevant stakeholders. With over 28 years of market experience, we have successfully delivered transformation projects across various industries—laying the foundation for future-proof, integrated planning using SAP’s xP&A tools.
In addition, we offer a package of workshops in which we set out on the path to the financial budgeting of the future, starting from the company-wide planning process (xP&A). Tool selection is included in Module 3 – Tool Strategy.
If you have any further questions, feel free to contact me or leave a comment at the end of the article.
Planning - workshop offers
Are your financial, sales and operational planning still separate, resulting in a lack of transparency and agility? In this interactive workshop, we measure the maturity level of your business planning.
Time required: 4-8 hours, online or as a face-to-face event
Based on an as-is analysis, we develop a common understanding of the need for integrated business planning and show you how to build a future-proof planning strategy with xP&A.
Time required: Up to 8 hours, online or as a face-to-face event
Are outdated systems, manual processes and isolated solutions slowing down your planning? In this workshop, we will bring clarity to the jungle of planning tools and show you how to implement your xP&A strategy in the best possible technological way.
Time required: 8 hours, online or as a face-to-face event
