Integrated business planning

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Integrated business planning (IBP) refers to the technologies, applications and processes of connecting the planning function across the enterprise to improve organizational alignment and financial performance.[1][2][3]

IBP represents an abstract model of the company[citation needed] in order to link strategic planning and operational planning with financial planning. The process that achieves this is called SiMPLE ( Smart Integrated Market-driven PLanning & Execution).[4]

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

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]

  1. ^ Aguilar, Omar (2003). "How strategic performance management is helping companies create business value". Strategic Finance 84.7. p. 44. 
  2. ^ Payne, T. "Integrated business planning fills the gap between strategic planning and S&OP. Gartner, Inc." (2008).
  3. ^ Smith, Larry, Joseph C. Andraski, and Stanley E. Fawcett (2010). "Integrated business planning: a roadmap to linking S&OP and CPFR". The Journal of Business Forecasting 29.4: 4. 
  4. ^ http://www.plecosolutions.com/#!integrated-business-planning/c24a0

External links[edit]