Integrated Business Planning

 What is “Integrated Business Planning” (IBP)?

-         This is a program offered by SAP that facilitates the decision making to enterprises by providing them with real time information of all areas that every person with access can modify so it guaranties an accurate analysis of it to see the real status of the company. This information is segmented in areas, and it is also possible to automatize certain task like prioritizing, creating a forecast and monitoring, this functions like a bridge between strategy and execution.

 

What is “Sales and Operations Planning” (S&OP)?

-         It is a tool part of integrated business planning that allows companies to align its goals from certain areas by exchanging information between them every X weeks depending on its needs. The process of S&OP starts with a sales forecast that leads to the need to have certain amount of stock, so it is necessary to buy raw material and it has to be authorized by the finances department.

 

What are the similarities between IBP and S&OP? Mention and describe them.

-         They collect information from all departments to make sure to take the right decision

-         They are both based on forecasting

 

What are the differences between IBP and S&OP? Mention and describe them.

-         IBP includes financial functions

-         IBP looks for a better business performance

 

How does the IBP process work? Describe in detail.

It is a five sections cycle

-         Demand review

-         Supply review

-         Integrated reconciliation

-         Management business review

-         Portfolio management review

 

What are the challenges of IBP?

-         I think the main challenge is to put together every area in a “neutral” point where they all can understand the information and express it properly to others.

 

Which are the most common difficulties/problems when implementing IBP? Mention them and provide examples. 

-         Understanding the program might be one, for example if I start working on a company that uses it but I have never seen it before I will not be capable to work efficiently.

-         Low commitment can also affect because even if all departments are connected, it only takes one of them not uploading its information to delay the whole process.

 

What are the advantages and disadvantages of IBP?

-         Advantages: easy access through excel, flexible and friendly interface, it is possible to work from anywhere as long as there is access to internet.

-         Disadvantages: transitioning to implement IBP might be complicated and quite expensive,

 

What is the importance of IBP nowadays?

Due to technological advances upgrading companies’ competitiveness it is required to improve in every possible aspect, not only production. So, implementing IBP management will ensure to work in the most efficient way by anticipating possible situations and showing the best way to deal with them. This IBP creates an horizontal process in which anyone can participate equally in order to create a mutual and easier understanding