Some refer to it as sales and operations planning (S&OP) or sales, inventory and operations planning (SIOP); in the retail world, you can find merchandizing, inventory and operations execution (MIOE), or simply integrated planning; and others opt for integrated business planning (IBP). Sanjiv Sidhu, Chairman and Founder of o9 Solutions, explains Integrated Business Planning and shares the story of Mr. Herman Lay from Frito Lay. Playing all the right notes, just not in the right order! Next week, Part 3 will look at how the growing sophistication of IT systems has freed finance resources to be redeployed away from traditional accounting. Most importantly, integrated planning enables employees to be agile in responding to changing circumstances and able make the best decisions possible — all at the speed of modern business. What is Integrated Business Planning (IBP)? Integrated Business Planning (IBP) is a business-focused, strategic evolution of S&OP that will bring serious benefits to the business – especially the bottom line. You have entered an incorrect email address! Too often we see companies working on two (or more) sets of numbers that bear little relation to each other. Integrated Business Planning (IBP) is the way of working to agree & align the objectives of the business. And as increasing numbers of companies make the shift, those still taking a more legacy approach will be at a significant disadvantage. Of the 13 planning systems analysed this year, BOARD has emerged as the clear frontrunner He has promised his colleagues that one day he will learn French. The CliffsNotes version of IBP is the long-range strategic business planning that combines volumetric and financial data into a single, highly visual comprehensive planning platform that delivers greater global visibility, more powerful multi-scenario analysis over longer planning horizons, tighter collaborative workflow, and a wider spectrum of alerts. Integrated Business Planning is about: • Focus – plan the drivers of revenue and cost that most closely align to the strategic goals of the business. Demand Driven Supply Chain, why is it so powerful? What IBP offers above all else is ‘Cross-functional business planning’ and ‘One Version of the Truth’. Business Intelligence blog articles on the latest trends, Automotive and Retail Pre-Sales Specialist - Board International. Operations are trying to improve efficiency by doing long production runs and minimizing the number of tooling changeovers. There are many different IBP definitions, one of them being ‘advanced S&OP’. CTRL + SPACE for auto-complete. Editor’s note: This is the second article in a four-part series on integrated business planning (IBP). Your email address will not be published. Integrated business planning (IBP) is an approach to considering all the components of a business operation together, including how those components interact to … To provide the best experience for our users, this website uses cookies. In this blog, we’ll explore what IBP is and the benefits of its implementation. It’s aim is to have a common, agreed plan across sales, marketing, product development, operations, finance & the rest of the business. Disjointed planning processes are standard practice for many organizations, causing a lack of visibility and efficiency across every department. Part 1 (“How to Plan for Sustainable Growth”) explored the value of IBP in building sustainable business growth. The result is a collection of business silos which function almost entirely in their own bubble, creating inefficiencies and poor performance across the business due to: An integrated business platform can overcome these challenges by enabling the organization to augment its decision-making abilities and: For companies like Coca Cola European Partners, IBP has become part of daily operational activities, driving transparency and efficiency across a fast-moving supply chain, from production through to delivery. Effort expended on immaterial or uncontrollable areas is largely wasted. Integrated Business Planning (IBP) is an approach (considered to be best practice) which incorporates financial and operational data from across the organization. Many firms have implemented S&OP principles to provide some level of collaboration, but they still lack unification across the entire organization. Sales opportunities and risks might appear in the financial plan, but due to the technical complexity of including them in the operational plan they are added to the ‘too difficult’ pile and left out. Dynamic strategy and capability planning: In this phase, the company has defined its strategic goals, … Disjointed planning processes are standard practice for many organizations, causing a lack of visibility and efficiency across every department. Subscribe to the blog and stay up-to-date on what’s new in Supply Chain. • Integrated Business Planning – The Cornerstone of Smart Decisions from FSN, Learn why ensuring on-shelf availability and maximizing performance in the competitive grocery sector requires an…, As a leading vendor in BI and performance management, Board is no stranger to the challenges around scalability and…, Your email address will not be published. I believe that advanced Integrated Business Planning (IBP) solution frameworks, by providing the ability to interact with operating and execution environments on a continual basis, are the key to solving these problems. Demand cannot be satisfied without supply, hence, another important component of integrated business planning is the high level alignment of supply plans with demand plans. Integrated business planning — the subject of a new report from the Association for Finance Professionals (AFP) — is a single holistic plan that seamlessly connects strategic plans with sales plans, operational plans, and financial plans while balancing practical constraints about the availability of resources and funding with the business’s financial objectives. SAP Integrated Business Planning for Supply Chain Ensure business continuity in times of supply chain disruption by synchronizing supply chain planning in real time, from S&OP to … The platform is featured in three Gartner Magic Quadrants, is highly praised in numerous other analyst reports, and repeatedly comes out as the top solution in customer reviews of BI and CPM solutions. It’s aim is to have a common, agreed plan across sales, marketing, product development, operations, finance & the rest of the business. At its heart it’s a system that is designed to create more alignment within the business and to facilitate better decision making. One important element of integrated business planning is providing a linkage between a company's top line expectations for revenue and profits, and specific demand generation plans overtime. It links strategic, operational, and financial goals and plans to enhance employee alignment with the strategy and financial efficiency. 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