Process advisory firm Oliver Wight defines Integrated Business Planning (IBP) as a best practice business process model that extends the principles of S&OP solutions 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 from S&OP solutions to IBP. The five key factors for effective transformation were defined as:
- Displaying unflinching executive commitment to an IBP process.
- The leveraging of an IBP-enabled technology strategy that can free-up resources chasing and collecting data into higher-value analysis actions.
- 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.
- Employing a proven IBP transformational and structured methodology to lead the overall change management journey from S&OP planning.
- 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, transitioning beyond S&OP solutions, with important considerations for selection of the most appropriate and beneficial technology adoption strategies for teams to consider.