Integrated business planning

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Integrated Business Planning is a planning process that integrates across two or more functions in a business or government entity referred to as an enterprise to maximize financial value.[1]

The specific functional areas in a company as well as the industry domain associated with the company defines the specific type of IBP process. Examples of IBP processes are:
->Sales and Operations Planning
->Healthcare Analytics
->Strategic Corporate Performance Management
->Planning and scheduling across multiple plants in a factory

The key requirement for IBP is that two or more functional process areas must be involved and maximizing (optimizing) of financial value should be done.

Corporate executives, business unit heads and planning managers use IBP to evaluate plans and activities based on the economic impact of each consideration.

Bridging Corporate Performance Management and S&OP There has been a lot of focus on Integrated Business Planning in the context of Sales and Operations Planning. Gartner (www.gartner.com) refers to a 5-stage S&OP Maturity model wherein IBP is referred to as the Phased 4 & 5.[2]
Integrated Business Planning however is more broader than S&OP. It is an approach that that combine enterprise performance management (EPM) and sales and operations planning (S&OP) to provide incremental capabilities that neither provides individually. In so doing, IBP platforms address long-standing challenges that financial and operational professionals have struggled to overcome. The result: opportunities for step change improvements to how manufacturers plan, manage and govern their business.[3]

Components[edit]

Flow2008.jpg

As illustrated right, planning is integrated across the enterprise, which enables decision makers to identify the activities that deliver the greatest financial impact across the company.

Analyses[edit]

Companies use IBP to translate insight into financial impact by providing analyses such as:[citation needed]

Benefits[edit]

IBP transforms planning into a decisive competitive advantage by:[citation needed]

  • Providing an integrated planning platform across marketing, operations and finance
  • Generating a holistic understanding of performance drivers
  • Quantifying the financial impact and interdependencies across planning alternatives
  • Optimizing strategic planning and resource allocation
  • Balancing sales and operations planning for profitability
  • Quantifying financial risk
  • Increasing business flexibility

Applications[edit]

IBP has been used to model and integrate the planning efforts in a number of applications, including:

See also[edit]

References[edit]

External links[edit]