At Profit&, many of our consultants come from a TM1 background, and a significant number of our clients have transitioned from TM1 to Anaplan. This article summarises our learnings and experiences, shares Profit&'s perspective, and explains when and why it makes sense for a company to consider migrating from TM1 to Anaplan. 

TM1 vs. Anaplan: A Comparative Overview 

Technology Evolution: Old Code vs. New Code 

IBM TM1, originally developed in the 1980s, has undergone multiple iterations but remains rooted in legacy technology.  Anaplan, introduced in 2010, is a modern, cloud-native platform.

Why does this matter?

Automatic Upgrades: Anaplan receives seamless cloud updates, eliminating the need for manual version upgrades and maintenance. 

Real-Time Performance: Anaplan’s in-memory computing enables instant recalculations without requiring a "Recalculate" button, as is the case for TM1. 

Cloud Technology & Scaleability

TM1 has strong in-memory processing capabilities and is well-suited for complex financial modeling, but its cloud adoption has been more of a lift-and-shift approach rather than being cloud-native. Anaplan, on the other hand, was built for the cloud, making it more agile in terms of deployment, collaboration, and automatic updates. The ability to scale without worrying about infrastructure management is a significant advantage for businesses that want flexibility without IT overhead. 

Business-Owned and User-Friendly 

Anaplan is designed for business users rather than IT teams.

Why does this matter?

Better Adoption: The simplicity of Anaplan’s formula-based approach, similar to Excel, makes it more accessible than TM1’s scripting-heavy environment. 

Faster Implementation: Pre-built Apps accelerate deployment, reducing the time required to go live. 

Ease of Use

TM1’s scripting-heavy approach (with Turbo Integrator scripts and rules) requires technical expertise, often making IT or dedicated power users essential for model building and maintenance. While TM1 offers powerful analytics and flexibility, the learning curve can be steep, especially for non-technical users.

Anaplan, on the other hand, embraces a business-friendly, low-code approach, empowering finance, operations, and planning teams to modify models without IT intervention. The drag-and-drop interface, self-service analytics, and intuitive visualisations make it more accessible.

Customisation and Agility

TM1 allows for deep customisation, but significant changes require coding in TurboIntegrator (TI) scripts and rules. This often means relying on IT teams or external consultants, slowing down agility.

Anaplan is designed for business-led model adjustments with its low-code environment. Users can modify models themselves without needing IT intervention, leading to faster adaptation and lower maintenance costs.

Unified Platform vs. Multiple Tools 

In TM1, users interact with multiple tools like TM1 Architect and Performance Modeller. Anaplan provides a single unified platform for modelling, reducing complexity and improving scalability.

Why does this matter? 

Easier Expansion: A consistent user experience ensures smoother model growth and extension across business functions. 

Better Adoption: Users don’t have to navigate disparate tools, making onboarding and everyday use more intuitive. 

Connected Planning / Integrated Business Planning (IBP) 

TM1 is a powerful financial planning engine, but it often functions as a standalone system. While integrations are possible (e.g., REST API, IBM Cloud Pak for Data), they typically require IT expertise to set up and maintain. Users also navigate multiple tools like TM1 Architect, Performance Modeler, and Planning Analytics for Excel (PAfE), which can create friction in cross-functional collaboration.

Anaplan, on the other hand, was built for connected planning, meaning finance, sales, supply chain, and HR can work in one unified environment. The real-time data sharing and instant recalculations ensure alignment without the need for manual refreshes. Plus, with built-in collaboration features, decision-making happens within the platform rather than through external emails and spreadsheets.

Why does this matter? 

Seamless Expansion: Anaplan allows organisations to extend planning across departments without complex integrations. 

Dynamic Business Environments: Companies that need to frequently adapt their models benefit from Anaplan’s flexibility. 

Advanced Analytics and AI Capabilities

TM1 (Planning Analytics) is well-regarded for its multi-dimensional analysis and scenario modelling. It excels in handling complex financial and operational data with deep, IT-driven customisation. IBM has also integrated Watson AI, enhancing predictive analytics and forecasting capabilities to support data-driven decision-making.

Anaplan embraces AI and machine learning to enhance planning and decision-making while maintaining a focus on business-user accessibility:

• Automated Forecasting: AI-driven insights refine financial projections with minimal manual input.
• Scenario Planning: Users can quickly model different business conditions without needing complex scripts.
• Prescriptive Insights: AI provides data-driven recommendations to guide optimal business decisions in real time.

Both platforms offer robust analytical capabilities, with TM1 favouring highly customisable, IT-driven implementations, while Anaplan emphasises ease of use and accessibility for business users. The choice depends on the level of AI-driven insights and flexibility your business requires.

Scalability Considerations 

TM1 has strong sparsity management, which helps with performance in large datasets. Historically, Anaplan had limitations in this area, but recent licensing model updates mitigate these concerns.

Why does this matter? 

Data Integration and AI/ML Capabilities 

Both TM1 and Anaplan offer robust data integration capabilities. Anaplan Data Orchestration (ADO) is an innovative recent development that leverages AI for automation.

Why does this matter? 

Continuous Innovation: Anaplan’s AI-driven advancements improve efficiency, whereas TM1 has seen slower innovation in recent years. 

Time-to-Value Considerations

TM1: Implementation times vary based on complexity; larger projects can take months due to IT-heavy setup and scripting.

Anaplan: Faster deployment—some businesses go live within weeks, thanks to pre-built templates and intuitive modeling tools.

Financial Consolidation 

Both IBM and Anaplan offer dedicated tools for financial consolidation. IBM uses Cognos Controller, while Anaplan integrates with Fluence, a modern leader in the space.

Why does this matter? 

Total Cost of Ownership (TCO) and Pricing 

Pricing varies, and we recommend referring to independent sources for exact figures. However, when evaluating TCO, it’s crucial to consider hidden costs in TM1, such as ongoing IT support and consulting fees.

Why does this matter? 

Lower Support Costs: Anaplan requires minimal IT support compared with TM1, where external consultants are often needed for model updates. 

Future-Proofing: Business models evolve, and adapting in Anaplan is significantly easier than in TM1. 

People and Talent Considerations 

The new generation of finance professionals prefers working on modern platforms rather than legacy technology.

Why does this matter? 

Attracting Talent: Companies using outdated tools may struggle to attract and retain top talent. 

The Savencia Case: A real-world example of a company that experiences positive experienced staff retention and recruitment as a result of switching to Anaplan. 

Summary 

For organisations transitioning from TM1 to Anaplan, the key advantages include: 

✔ Easy transition for TM1 users due to similar concepts. ✔ Faster implementation with built-in apps and automation. ✔ Seamless expansion without needing multiple tools. ✔ User-friendly interface that improves adoption. ✔ Higher ROI through lower maintenance and greater flexibility. 

Conclusion: Should You Migrate? 

• Stay on TM1 if: Your finance function operates in isolation, your environment is highly stable, and your models require minimal change. 

• Move to Anaplan if: You want to embrace Connected Planning, operate in a dynamic business environment, and require agility in financial modelling. 

At Profit&, we have guided numerous clients through this transition, ensuring a smooth migration with minimal disruption. If you’re considering the move, let’s discuss how we can help!