Integrated Business Planning (IBP) connects every business function like Planning, budgeting, forecasting, and management reporting to make informed decisions and drive faster in more efficient planning processes.
2. Introduction
• Today most of the successful companies are
incorporating Integrated Business Planning as a
strategic mandate.
• Basically it is a single holistic plan that spans end-
to-end value chain that connects strategic plans
with sales plans, operational plans and financial
plans.
• When it comes to delivering a seamless
management process, IBP is considered the best
practice that aligns the principles of sales and
operational planning.
• By aligning the company’s plan it effectively
helps in satisfying customers and enhances
profitability and also helps decision makers to
work according to the allocated resources.
3. Why Integrated Business Planning?
• Based on the changing conditions and
potential economic impacts that can make or
break your business, IBP enables the
managers and executives to strategically
evaluate plans and activities.
• These business decisions are easily aided by
reporting and can help the professionals and
decision makers to identify any plans that
may be jeopardized and further respond in a
timely manner.
• This supports an enterprise-wide plan from
small to large scale businesses demand plan,
sales, revenue, and the integration of both
financial and operational planning.
4. Cross functional Working
• As most of the organizations are structured on
functional lines. These can be categorized into
many aspects of the organization such as
performance metrics, reward and recognition.
• It is important to analyze how the team
performance and goals support the overall
business strategy.
• With the help of IBP, it ensures that the strategy
is described in terms which will highlight the
importance of collaboration and cross-functional
team working in business.
5. Optimizing Decision Making
• From strategic through operational levels it
helps in creating joined-up plans.
• If your enterprise wants to ensure dynamic
alignment on a regular basis IBP is considered
to be one of the critical steps.
• IBP seeks to optimize enterprise decision
making by creating a broad and transparent
evaluation of business options.
6. Transparency
• Another aspect of IBP is financial transparency
that can be strategically used to support
decision making.
• This means that the overall enterprise
implication of decisions is routinely presented.
• This means that if your organization is up on
launching a new product line the incremental
revenues can be analysed with the help of IBP.
7. Better Insights
• Through an integrated software it
becomes easy to get insights to several
business cycles including supply chain,
financial projects and evaluate strategic
plans.
• If more insights are incorporated into the
projects it will likely contribute to
business goals like profitability and
efficiency which in turn will make the
decisions better informed.