Connected Planning: Buzzword or Business Necessity?

Most core business functions have gone digital, yet planning processes often remain fragmented.

In 2025’s manufacturing industry, nearly every department – finance, HR, supply chain, merchandising – has undergone some form of digital transformation​. ERP systems track production and inventory, HRIS platforms manage personnel, and CRM tools log sales. Despite this digitization, the planning process in many organizations still relies on email chains and standalone spreadsheets. Enter connected planning, a concept championed by platforms like Anaplan. It promises to link planning activities across the enterprise in real time, much like an integrated nervous system for the business.

This idea has garnered significant buzz, sparking debates about hype versus value. After all, achieving true connected planning isn’t as simple as flipping a switch, it demands real investment in new tools and robust change management to break old habits. So, the burning question for executives is: Is connected planning just the latest buzzword, or is it a genuine driver of business success?

In this article, we’ll explore what connected planning really means (and what it doesn’t), how planning has evolved to this point, and why connected planning matters today. We’ll also confront the reality that many teams are still stuck in Excel hell, and examine what holds them back. Finally, we’ll conclude with why connected planning is more necessity than trend and what steps manufacturing companies can take next to make it a reality.

What Is Connected Planning? (And What It Isn’t)

Traditional planning often conjures images of analysts poring over Excel spreadsheets – each department working in its own silo. In this old paradigm, finance might build a budget in one workbook, while operations maintains a separate production plan; by the time these are manually consolidated (often weeks later), the information is outdated. Decisions get made slowly because everyone is waiting for the latest emailed file.

In short, traditional planning is siloed, sequential, and sluggish. Data lives in disconnected systems, collaboration is limited (one person “owns” the spreadsheet at a time), and scenario analysis is cumbersome. Version control issues abound (think Budget_Final_v3_REALFINAL.xlsx), leading to confusion and mistakes. In fact, studies estimate as many as 88% of business spreadsheets contain errors – a scary figure when critical forecasts and decisions rest on those cells.

Connected planning turns this model on its head. It is cross-functional, continuous, and collaborative. Instead of isolated plans, connected planning links together finance, supply chain, HR, sales, and other functional plans on a single platform, so they share the same data and assumptions in real time. Changes in one plan automatically flow through to others. For example, if the sales forecast for a product is adjusted, the production plan, workforce plan, and financial forecast all update in tandem, enabling teams to respond immediately. Planners across departments work in a unified environment (often cloud-based) that supports concurrent collaboration and “one version of the truth.” This is a stark contrast to emailing spreadsheets back and forth.

Connected planning platforms allow multiple users to contribute simultaneously with role-based access, drastically shortening decision cycles. It also encourages a mindset shift: the organization plans as one cohesive unit rather than a collection of departments. Finance leaders, supply chain managers, HR, and others jointly participate in scenario planning sessions, supported by live data, instead of each defending their own static plan.

It’s important to note what connected planning isn’t. It’s not merely a dashboard or reporting tool, nor just a technical integration between software packages. It’s a fundamentally different approach to planning.

Traditional planning might be described as reactive and department-centric, whereas connected planning is proactive and enterprise-centric. It requires breaking down turf wars over data and fostering a culture where information flows freely across the organization. In practical terms, connected planning often involves deploying a dedicated platform (like Anaplan, Oracle Cloud EPM, Pigment or others) that sits above transactional systems and connects data from all functions. But buying a tool alone doesn’t create connected planning – the organization must also embrace new processes and collaboration norms.

In summary, connected planning means an end to the days of finance, operations, and HR working off different numbers. Instead, all planning activities are interlinked in real time, enabling faster, smarter decisions based on a shared reality.

A Quick Look Back: Evolution of Planning

To appreciate why connected planning is gaining traction, it helps to look at how we got here. For decades, spreadsheets were the undisputed king of planning. From the 1980s onward, Microsoft Excel (and Lotus 1-2-3 before it) empowered finance teams and planners to build models on the fly. This flexibility made spreadsheets ubiquitous – even today, roughly 70% of companies rely on spreadsheets to run significant parts of their business. Entire forecasting processes grew up embedded in Excel macros and linked files. However, as businesses expanded and data exploded, the cracks in the spreadsheet approach became clear: manual data transfer, formula errors, and version chaos led to frequent pain points. Teams would spend weeks reconciling numbers only to realize someone used an outdated template. High-profile fiascos caused by spreadsheet errors – from billion-dollar budget blunders to missed supply orders – became cautionary tales.

By the 2000s, companies began adopting Enterprise Performance Management (EPM) and other specialized planning software to overcome these issues. Tools like Hyperion, SAP BPC, and IBM Cognos Planning aimed to centralize and control planning data. They improved on Excel’s governance problems, but often at the cost of agility. These legacy planning systems were usually owned by finance and had lengthy update cycles, making it hard for operational planners to use them dynamically. In many manufacturing firms, sales and operations planning (S&OP) processes continued in separate systems (or Excel) even if finance had an EPM tool – meaning true cross-functional integration remained elusive.

So why is connected planning emerging now? Three key developments converged in the past decade:

• Cloud Technology & Big Data: Modern connected planning platforms are cloud-native, with massive in-memory computing power. This allows handling of granular data (e.g., SKU-level forecasts, individual employee plans) from across the enterprise in one model – something impractical in 2005. Cloud also means everyone works off the same live dataset, no emailing files around.

• Real-Time Expectations: In today’s volatile market environment, waiting months for an annual plan refresh is unacceptable. The rise of rolling forecasts and continuous planning reflects a need for agility. Connected planning answers this call by enabling instantaneous updates and scenario analysis on-the-fly, so companies can pivot quickly when conditions change.

• Integrated Thinking (xP&A): Analysts (like Gartner) have promoted the idea of extending financial planning into operational domains – what Gartner terms Extended Planning & Analysis (xP&A). By 2024, 70% of new FP&A projects are expected to encompass xP&A, linking finance with areas like supply chain, sales, and HR​. This evolution recognizes that to truly optimize performance, planning cannot happen in isolation. The technology and methodologies have caught up to enable this integration at scale.

  
  

In short, the planning discipline has evolved from standalone spreadsheets, to finance-centric EPM systems, and now toward connected, enterprise-wide planning. Each step addressed prior shortcomings – and connected planning aims to finally reconcile the flexibility people love about spreadsheets with the rigor and comprehensiveness enterprises need. It’s the product of both technological progress (cloud, AI, faster databases) and methodological progress (agile planning practices, cross-functional collaboration philosophies).

Why Connected Planning Matters Today

Buzzword or not, connected planning is gaining momentum because it tackles real business challenges that traditional approaches struggle with. For manufacturing companies in particular, where synchronization between departments is crucial (think of coordinating procurement, production, sales, and finance), the benefits of connected planning can be game-changing. Here are several tangible ways connected planning drives value:

• Speed and Agility – Planning cycles become dramatically faster. With all departments planning on a unified platform, there is no need to wait weeks for consolidated data – updates happen in real time. This speed translates to agility: companies can reforecast or replan on short notice. For example, if a key supplier fails, an integrated scenario can be run immediately to adjust production and financial projections. Deloitte finds that organizations connecting 3 or more functions see significantly improved forecasting accuracy (half of them achieved <5% variance in forecasts), indicating more responsive and precise planning.

• Alignment Across Departments – Connected planning ensures that everyone is on the same page. No more dueling numbers in meetings (“My sales figure is different from Finance’s figure”). Instead, sales, operations, supply chain, and HR are all working with one shared dataset and set of assumptions. This alignment eliminates confusion and infighting over data validity. When a manufacturing company’s sales team and supply chain team use connected planning, sales forecasts automatically inform production and inventory plans, avoiding stockouts or gluts. Likewise, Finance instantly sees the impact of operational decisions (like a change in production volume) on the P&L. The result is a cohesiveness that improves execution of the business plan.

• Scenario Modeling and Better Decisions – The ability to do rapid “what-if” analysis is vastly improved. Connected planning platforms allow users to model alternative scenarios (demand surges, cost increases, new product launches, etc.) in a sandbox and immediately see cross-functional impacts. This is particularly valuable in manufacturing, where leaders must make decisions amid uncertainty (commodity price swings, supply chain disruptions, changing customer demand). CFOs consistently say that fast scenario planning is a top requirement for modern business​. With connected planning, scenario modeling that used to take days with spreadsheets (gathering data from each department) can be done in minutes, enabling truly data-informed and proactive decision-making. More scenarios can be tested, and decisions are backed by a holistic view of the business rather than siloed perspectives.

• Efficiency and Reduced Manual Effort – By automating data consolidation and connecting plans, organizations drastically cut down the manual work in planning. No more emailing templates or reconciling different file versions; the system aggregates inputs automatically. Planners and analysts reclaim time to focus on analysis, strategy and problem-solving instead of chasing numbers. One industry blog noted that connected planning shifts efforts from data gathering to analyzing risks and opportunities, driving better outcomes​. In a manufacturing context, this could mean supply chain planners spend less time crunching Excel formulas and more time optimizing production schedules or evaluating supplier strategies – because the grunt work of merging data is handled by the platform.

• Enhanced Accuracy and Single Source of Truth – With one integrated model, the organization finally achieves a single source of truth for planning data​. This greatly improves accuracy. Errors are caught more easily when everything links together, and inconsistent assumptions are eliminated. When Finance, Operations, and HR are all drawing from the same data repository, there are fewer surprises. The trust in numbers increases, which in turn increases confidence in decisions. Moreover, connected planning tools often include controls and audit trails to reduce human error (far more robust than an uncontrolled web of spreadsheets). The bottom line: more reliable plans and forecasts. As an example, companies that embrace connected planning have seen forecast error reduce as connectivity increases, meaning plans more closely track reality – a critical advantage when margins are thin.

In summary, connected planning brings speed, alignment, insight, efficiency, and accuracy – all of which are highly prized in modern manufacturing enterprises where being a step ahead of change is vital. A manufacturing firm that can quickly harmonize its financial plan with an unexpected supply chain constraint, or instantly adjust its workforce plan when a new production line is added, will outperform one that cannot. Connected planning provides the capability to do exactly that, turning planning from a static, tedious exercise into a dynamic, value-adding process.

The Reality Check: Why Most Teams Still Aren’t There

If connected planning is so great, why haven’t all organizations adopted it? The reality is that many companies remain stuck in the comfort (and confines) of Excel. Cultural and practical barriers keep them from fully embracing connected planning, even if the concept is appealing. Here are some of the common reasons teams struggle to get there:

• “Excel is Familiar – Why Change?” – Excel’s dominance is hard to overcome. Business teams have used spreadsheets for decades; senior managers built their careers on Excel models. This familiarity breeds a strong status quo bias. Even after investing in fancy planning software, around 80% of finance professionals still revert to spreadsheets at some point​. People know Excel’s quirks and feel in control with it, whereas new tools come with a learning curve. In short, there is comfort in the known, and many employees resist moving away from their trusty spreadsheets.

• Ingrained Silos and Processes – Adopting connected planning isn’t just a software installation – it’s an organizational transformation. Some companies have deeply ingrained departmental silos. Each function might jealously guard its data or have its own way of planning (e.g., sales uses a CRM extract, manufacturing uses an MES system, finance uses an ERP export). Changing those processes means challenging territorial boundaries and redesigning workflows that have been in place for years. It’s not uncommon for there to be resistance to new ways of working and “but we’ve always done it this way” sentiments. Breaking silos requires strong leadership pushing cross-functional collaboration, which not every organization manages to muster.

• Lack of Internal Expertise – Implementing connected planning (for instance, building an integrated Anaplan model spanning multiple business units) requires a certain skillset. Companies may find they lack people with the right mix of business knowledge and technical modeling ability. The result? Either the project stalls, or the solution built doesn’t quite fit the business’s needs. Off-the-shelf models rarely align perfectly with a specific company’s products, organizational structure, and metrics. Without internal experts or willing partners to tailor the solution, the rollout can falter. Many teams thus stick to Excel simply because they know how to make Excel do what they need, whereas a new system feels like a black box they can’t tweak easily.

• Poor Change Management – Perhaps the biggest factor is not the technology at all, but how it’s introduced. Successful connected planning initiatives require robust change management and leadership buy-in. This means training users, communicating the vision, and establishing new processes and accountability. If a company just buys a connected planning tool but doesn’t invest in user adoption strategies, it’s likely to fail. We often see cases where a powerful planning platform was installed, but employees kept doing things the old way – the tool became “shelfware.” Without clear executive sponsorship and perhaps some enforcement (e.g. “The new system will be required for the upcoming quarter’s plan."), old habits prevail. Change is hard – one HBR study famously noted people resist change in organizations for a host of predictable reasons – and planning processes are no exception​. Achieving connected planning is as much about changing mindsets and workflows as it is about technology.

In essence, the barriers to connected planning are rarely technical – they are cultural and organizational. Excel persists not because it’s the best solution, but because it’s the familiar solution. Companies that have tried and failed to implement connected planning often cite insufficient change management or a mismatch between the generic tool and their specific needs as reasons. The takeaway for top management is that success in connected planning comes from a tailored approach. It’s not one-size-fits-all; each enterprise must map the connected planning concept to its unique business model and data architecture. And it must actively manage the transition, addressing team concerns and building new capabilities. The technology works – but only if people use it as intended. As the saying goes, “culture eats strategy for breakfast,” and in this case, culture can also eat your shiny new planning system if you’re not careful.

Conclusion + What’s Next

So, is connected planning a buzzword or a business necessity? Looking at the competitive landscape and the rapid pace of change in manufacturing today, connected planning is very much a necessity – albeit one that requires effort to realize. It’s far more than hype: companies that master it are seeing real gains in agility, accuracy, and alignment, which translate to better performance. However, it’s also clear that simply buying a connected planning tool doesn’t guarantee success. Many failed projects have taught us that without a custom-fit solution and strong change leadership, even the best technology will fall flat. In other words, connected planning works when you tailor it to your business and invest in the people-side of the equation.

Manufacturing leaders should view connected planning as the next evolution of how they run the business – the glue that ties together strategic plans and operational execution across finance, supply chain, HR, and beyond. The value is there for the taking, but it must be unlocked with the right approach. This means assessing your organization’s readiness, breaking down silos step by step, and perhaps most importantly, guiding your teams through the change. The reward is a planning process that is faster, smarter, and truly integrated, giving your company a sharper competitive edge in a volatile market.

What’s next? For executives intrigued by the promise of connected planning, the logical next step is to conduct a readiness check and lay a strong foundation. Consider engaging experts to help design a roadmap that fits your company’s reality. Our advice is to start with a focused pilot (for example, connect finance and supply chain planning around the sales forecast) to demonstrate quick wins and build buy-in. From there, expand gradually. If you’re unsure where to begin or how to navigate the journey, remember you don’t have to go it alone. We invite you to reach out to our consulting team for a tailored connected planning solution powered by Anaplan. With the right guidance, manufacturing organizations can turn the connected planning buzz into tangible business results – linking every plan, aligning every team, and driving success together. The future of planning is connected, and it’s time to get on board.