Integrated Business Planning Objectives

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Process advisory firm Oliver Wight defines Integrated Business Planning (IBP) as a best practice business process model that extends the principles of sales and operations planning (S&OP) throughout the supply chain, product and customer portfolios, customer demand and strategic planning, to deliver one seamless management process.

Led by senior management, it is described as a common-sense process for aligning the company plans every month, which will help to allocate the critical resources – people, equipment, inventory, materials, time, and money – to satisfy customers most effectively, in a profitable way.

An article published in the May/June 2017 edition of APICS Magazine, Five Success Factors for Integrated Business Planning, authored by Ehap Sabri (1), indicated that large numbers of organizations are still struggling to properly execute a transformation to IBP. The five key factors for effective transformation were defined as:

  1. Displaying unflinching executive commitment to an IBP process.
  2. The leveraging of an IBP-enabled technology strategy that can free-up resources chasing and collecting data into higher-value analysis actions.
  3. Articulating a business case for change to ensure alignment between all process stakeholders as to expected operational and financial outcomes brought forward in the process.
  4. Employing a proven IBP transformational and structured methodology to lead the overall change management journey.
  5. Having the right organizational talent, effective governance and incentive mechanisms to maintain momentum and sustain change.

In this two-part market research advisory, our focus will be concentrated on the leveraging of an IBP enabled technology strategy with important considerations for selection of the most appropriate and beneficial technology adoption strategies for teams to consider.