The Great FP&A Disruption: The Evolution of FP&A No One Saw Coming!

Key Insights

• The wake-up call that exposed dangerous flaws in traditional planning systems


• Connected Planning Revolution (2005-2015): Unified data models broke down departmental silos


• Democratization through AI: Executives can now get instant scenario analyses without IT tickets


• Agentic Planning: AI systems now proactively identify risks and opportunities without human prompting


• Competitive Reality: Organizations planning quarterly while competitors plan continuously won't survive the next major disruption

The wake-up call of financial planning and analytics

"If you want to understand the future of business decision-making, follow the evolution of FP&A."

In 1995, this statement would have raised eyebrows but then 2008 came which became the turning point.

As markets crashed, companies realized their planning systems weren't just outdated—they were dangerous. While executives desperately needed to understand cash positions and survival scenarios, traditional FP&A teams drowned in spreadsheets, unable to provide timely answers.

Who would have thought a global financial crisis would make connected planning essential rather than optional? The ingredients had been simmering for years - cloud technology removing barriers, globalization increasing complexity, digital business models demanding agility.

But it took the harsh lessons of 2008 and later 2020 to expose the existential risk of keeping finance isolated from operations.

The turning point

In the aftermath, forward-thinking organizations didn't just update their tools—they reimagined planning entirely. And as new market players emerged to address this critical needs, one concept (and subsequent solution) changed how FP&A was perspective – Yes, we are talking about connected planning.

After it, FP&A was no longer just about looking backward at financial data. It became a strategic powerhouse using data, AI, and real-time insights to help companies make smarter, faster decisions. (One of the reasons why the global FP&A software market is on track to hit $1.46 billion by 2028, growing at nearly 10% a year). But how did we reach this inflection point, and what catalysts drove this remarkable change?

The evolution timeline of Financial Planning and Analytics

Now when you look at it the evolution of Financial Planning and Analysis (FP&A) has been closely intertwined to the changing needs of businesses. And it transformed through three distinct phases.

The early phase of siloed planning (1960s-1990s) kept finance teams isolated, cataloging history rather than shaping futures—companies essentially navigated while fixated on rearview mirrors. Spreadsheets era (1990s-2005) delivered welcomed flexibility but caused version control issues and scaling limitations as businesses grew complex.

Around 2005, a genuine revolution began when organizations recognized planning required deep operational connections and with this realisation, we officially entered the connected planning era (2015-2020). Anaplan emerged in 2006 with cloud architecture that eliminated outdated email version-sharing and unified previously conflicting departmental definitions. Industry validation followed when Gartner positioned Anaplan as a Magic Quadrant Leader, followed by a successful IPO in 2018.

During this period, planning expectations fundamentally shifted. Real-time decision support became essential, not optional. Finance leaders evolved from number-crunchers to strategic partners with operations teams. Extended Planning and Analysis (xP&A) validated that effective planning transcends departmental boundaries—manufacturing delays weren't just operational issues but carried immediate financial implications.

Anaplan distinguished itself by recognizing true business agility required eliminating barriers between finance and operations, building a comprehensive environment where changes automatically rippled through interconnected functions.

Building on a strong foundation & Leap forward

"The first wave of connected planning broke down walls. The AI wave is breaking down limitations of human capacity."

Just as 2008 exposed the dangers of isolated planning, post 2020 era revealed another critical truth: even connected planning systems couldn't keep pace with unprecedented disruption. To an extent that even finance teams with state-of-the-art platforms still struggled to answer fundamental questions like - How long could we survive with zero revenue? What happens if our supply chain collapses entirely?

The problem now wasn’t connectivity – it was computational capacity. Human planners simply couldn’t process scenarios fast enough or complex enough to navigate such extreme uncertainty.

But before we get into how AI revolutionized industry approach, we must acknowledge the fact that until now industry pioneers like Anaplan have built a strong foundation for connected planning environments where data flows seamlessly across organizational boundaries.

Because this wasn’t just a technical achievement but a fundamental shift in how businesses approach financial planning. By establishing unified data models and enabling cross-functional collaboration, they created fertile ground for what would come next.

Generative AI and its Democratization Effect on connected planning

And now when you look at it, we see a very similar pattern of revolution. What AWS did for computing power, generative AI is doing for financial planning and analytics intelligence – making it accessible to everyone, not just specialists.

Because now we see those Data orchestrators that once required weeks to configure now deploy in days, automatically mapping and cleaning information. Financial planning applications arrive with decades of best practices pre-loaded, ready to generate insights from day one. And taking it forward is Generative AI capabilities, like CoPlanner within the Anaplan platform, are transforming how teams engage with planning—making the process more intelligent, interactive, and efficient.

So much so that we now see executives casually asking, "What if shipping costs double next quarter?" – and their planning system instantly generated a complete analysis. No IT tickets. No finance department requests. Just immediate, actionable intelligence.

But perhaps the most profound change isn't about speed– it's about participation. And when you think about it, when operational leaders can directly explore financial implications without specialized training, planning becomes truly integrated into decision-making at every level.

Taking it to next level with Agentic AI

Now of course for FP&A industry adoption of agentic AI is at an early stage. While many organizations are/were still exploring generative AI's capabilities, Agentic AI brings a more profound shift in FP&A ways of working. Planning systems are evolving from tools that answer questions to partners that take action and complete entire workflows on their own. This evolution is creating an ecosystem of specialized AI agents working together:

• Analyst Agents continuously monitor both internal and external data sources to identify trends and detect anomalies. When an executive asks what's driving revenue changes, these agents deliver complete stories with visuals and recommendations.


• Planner Agents translate insights into concrete steps. Demand planners who once spent evenings manually updating forecasts can now rely on these agents to automatically run comparisons and propose adjustments based on multiple datasets.


• Modeler Agents autonomously build and maintain the models themselves. When financial analysts struggle with complex forecasting challenges, these agents generate formulas, flag inefficiencies, and suggest optimizations as business conditions change.

Companies like Pigment are pioneering these agentic approaches, creating planning environments where AI doesn't just execute tasks but proactively identifies risks and opportunities.

Now that we’ve talked about how technology has evolved , it’s natural to think what does it actually look like when finance teams move from being data wranglers to strategic leaders? So, Ankit Goyal, SVP at Polestar Analytics, shares how agentic AI is becoming the true enabler—freeing up time, sharpening insights, and finally putting finance in the driver’s seat.

Why This Matters Now More Than Ever

When you look at the whole evolution, one thing is for sure that FP&A industry is has come a very long way. Who could have imagined that various disruptions would make AI in planning essential rather than optional? But here we are.

The shift from spreadsheets to connected planning to AI-powered systems isn't just a technology evolution – it represents a complete reimagining of the finance function:

Then: Finance teams documented what happened and predicted incremental changes.

Now: Finance teams explore unlimited possibilities and anticipate radical shifts before they occur.

The most forward-thinking companies aren't just experimenting with AI in planning – they're fundamentally restructuring their decision processes around it. When platforms like Anaplan integrate generative capabilities into connected planning environments, and companies like Pigment pioneer agentic approaches that proactively identify risks and opportunities, we're witnessing the birth of truly intelligent planning.

But just as 2008 separated companies that could adapt from those that couldn't, this AI revolution is creating a new divide. Organizations still planning quarterly while competitors plan continuously simply won't survive the next major disruption.

The question isn't whether AI belongs in planning. That battle is over. The real question is how quickly your organization will transform to capitalize on these capabilities.

The future belongs to those who cannot only imagine it—but model it, test it, and adapt to it in real time.