Introducing the Functional Database model

Despite their ubiquity, traditional spreadsheets aren’t well suited to solving complex business modelling scenarios that need to bring budgeting, forecasting and financial reporting together at an enterprise scale. In addition, it can be incredibly frustrating to collaborate on Financial Planning & Analysis (FP&A) processes when the data sits in version-controlled spreadsheet models.

Here at Cubewise, we leverage the power of IBM Planning Analytics / TM1 to bring an entirely new concept and technology to the application of financial planning and analytics. The core principle underlying this technology is a breakthrough advance made by Manny Perez called the ‘Functional Database’.

The easiest way to understand a functional database is to imagine it as millions and millions of neatly ordered, compact spreadsheets that are interwoven with one another to give a completely dynamic data framework for sophisticated financial reporting and analysis. Each cell sits in memory and can therefore undertake instant recalculations as data changes. This allows for one single system to be accessible by all users in real-time, rather than having a stagnant spreadsheet that requires multiple manual interventions to keep it current. The functional database makes modelling more intuitive and efficient than ever before.

IBM Planning Analytics / TM1 is the most robust and mature functional database on the market. It’s unique for the way it enables interactive budgeting, forecasting and financial reporting all in one place. The functional database component uses the same cell-based concept as Excel, but allows thousands of users, terabytes of data and deeply complex modelling to match business needs – enabling the concept of ‘cubes’ in financial models.

In the same way that any cell in a spreadsheet workbook can be a function of any other cell in any spreadsheet workbook, any cell in any IBM Planning Analytics / TM1 cube can be a function of any other cell in any cube. It’s this fundamental property that makes the solution such an intuitive and powerful one for your FP&A needs.