Assignment 22
Student’s Name: María Daniela Rodríguez Naranjo
NUA: 231468
INTEGRATED BUSINESS PLANNING (IBP)
Answer the following study guide questions.
What is “Integrated Business Planning” (IBP)?
It is a plan that allows the company’s resources to be balanced, taking into account what is necessary, as well as the number of people and the existing demand. Integrates everything related to money, production processes and products
“It is a general assumption for the balance between the resources and needs of the company over a long period of time”
Netinbag. What is integrated business planning?. Retrieved from https://www.netinbag.com/en/business/what-is-integrated-business-planning.html. January 02, 2022
What is “Sales and Operations Planning” (S&OP)?
It is the process that integrates demand and supply and the financial part and allows decision making, reducing operating costs and having inventory control. Operations planning is everything related to the procedures carried out within the company.
“S&OP is an integrated planning process that aligns demand, supply, and financial planning and is managed as part of a company’s master planning”
Cerner. What is sales & operations planning (S&OP)? Retrieved from https://www.oracle.com/scm/what-is-sales-operations-planning/. January 04, 2022
What are the similarities between IBP and S&OP? Mention and describe them.
Both need back-up data, align forecasts and are a guide managers in making decisions
Both follow a series of steps and make use of tools developed to increase the company’s competitiveness
Slimstock. IBP vs S&OP: ¿Cuál es la diferencia?. Retrieved from https://www.slimstock.com/cl/ibp-vs-sop-cual-es-la-diferencia/. January 04, 2022
What are the differences between IBP and S&OP? Mention and describe them.
S&OP is execution focused and involves a traditional budgeting process
IBP takes a more cross-functional and holistic approach to weaving business goals through every function
IBP stars with financial, with monetary resources and its planning
S&OP is in the supply chain, it is dedicated to production
S&OP manages demand and supply
IBP can enable operations to be taken to an international level
Slimstock. IBP vs S&OP: ¿Cuál es la diferencia?. Retrieved from https://www.slimstock.com/cl/ibp-vs-sop-cual-es-la-diferencia/. January 04, 2022
How does the IBP process work? Describe in detail.
Getting all stakeholders to buy in to corporate goals: that everyone is in tune with the company, with the objectives that are to be met
Basing business decisions on data: with the database the company must make decisions because the data are the results of what is being done
Tying decision-making to outcomes and improving accountability: all members of the company deliver financial results according to their activities. And based on that, results are linked
Shifting the culture to embrace cross-functional collaboration: try to train all employees, this allows for collaboration and integration
Oracle. What is integrated business planning and why is it important?. Retrieved from https://www.netsuite.com/portal/resource/articles/business-strategy/integrated-business-planning.shtml. January 04, 2022
What are the challenges of IBP?
Reduce contingencies created by details not included in the plan
Creating bonds of trust within the company
Correct management of the processes
Elimination of products that no longer add value
Planning of everything that must be done within the company, from each area
Gunn, L. Six degrees. IBP - challenges and best practice. Retrieved from https://www.sixdegreesexecutive.com.au/blog/2014/10/ibp-challenges-and-best-practice. January 04, 2022
Which are the most common difficulties/problems when implementing IBP? Mention them and provide examples.
Specific skills are required for its handling. There is a complex coding
Scenario management tools can’t replicate real-world complexities, nor acknowledge that what-ifs are not linear
Achieving quality and access to data is more complex due to the more closed system.
Each department has a different concept for a single activity, while for some it is complex, for others it is easy.
Planning involves many aspects and many times they are not taken into account and the larger the company, the more planning is involved
Riverlogic. What is integrated business planning and why is it important crucial in 2020? Retrieved from https://www.riverlogic.com/blog/what-is-integrated-business-planning. January 04, 2022
What are the advantages and disadvantages of IBP?
Questions are easier and faster to answer due to greater precision, the delay time is minimal.
Everyone has a responsibility and fulfills it because it is an integral part of the company and that turns into results. This allows decision making to be based on that.
Allows the company to get to know the customer better and thus be able to offer a better service
Improved cross-functional collaboration, planning agility, risk mitigation, and forecast accuracy
Planning times are reduced by up to a few days.
By having more planning and better results, those who want to participate are more interested and more confident
If the S&OP process has not been carried out, implementing the IBP can be risky
Oracle. What is integrated business planning and why is it important?. Retrieved from https://www.netsuite.com/portal/resource/articles/business-strategy/integrated-business-planning.shtml. January 04, 2022
Riverlogic. What is integrated business planning and why is it important crucial in 2020? Retrieved from https://www.riverlogic.com/blog/what-is-integrated-business-planning. January 04, 2022
What is the importance of IBP nowadays?
All companies must carry out proper planning. Every day the demand for products and services increases and it is necessary to have a planning to satisfy everyone.
There are many processes that are used in the companies, having a control in each one is important because it reduces risks in every aspect. Planning involves knowing all the company’s resources in order to know what is necessary. The money that will be allocated to each activity.
Companies must know which products add value and which products do not add value. Although it can be a complicated system, there are people who specialize in this area
Risk mitigation is something that I had not seen anyone else bring up in the blogs and I have to say that I think it's one of the main advantages of implementing IBP!
ResponderBorrarI believe that IBP is a must have for any organization, I strongly agree with you points about the importance of IBP.
ResponderBorrar