What Makes Integrated Business Planning

In this chapter we focus on the most important aspect of IBP, meaning integration. We explain components of integrated design as IBP transformation enabler. We share that organizational, process, and technology designs need to be linked to business priorities and other initiatives to achieve integrated way of managing transformation. We share what we mean as per each component of integrated design. On process level, we define integration windows between strategic planning and tactical S&OP, tactical S&OP, and operational planning. We explain rationale why to connect those processes in that way and how to leverage existing integration opportunities. Further on we share our experience and explain value drivers which can help to mature your sales and operations planning process. For the purpose of the book, we propose definition of IBP from a practitioner point of view. We visualize on waterfall an S&OP on “energy drinks” which fits IBP objectives. IBP exposes new need for adoption of organizational structures and competencies. We share with you concept of three functions which can connect whole IBP together. Those three functions should be structured and should have overlap of capabilities enabling “people integration.” We recommend focus areas for those key roles. Finally we share SAP IBP data and system integration capabilities. We explain system integration from S&OP process perspective. We do it on examples like SAP Hybris, SAP Customer Business Planning, SAP Business Planning Consolidation, and ECC-S/4.