Importance of Integrated Business Planning within a Business

1. Importance of Integrated Business Planning within a Business Integrated Business Planning, also known as IBP, has become need of the hour wherein a large number of businesses has realized its important and has started including the same into their business models. Even with the companies that have already undertaken and started using IBP have come with a range of practical benefits, which can be outlined as high cost saving and profit spiking. Some of the core benefits that businesses reap from the implementation of Integrated Business Planning business model are discussed below in detail: Clear allocation and ownership: The foremost benefit is to gain clarity on as to what the employee goals are. These include knowing what the corporate goals are, what should be done to achieve those and how the team or a set of department can contribute in their achievement. oThese goals are further bunched in four areas, namely operations and supply chain, industry-focused, financial and marketing & sales. oIt also makes it clear as to who is accountable for the achievement of those goals since the ownership is clear within the executives. oThese goals can be financial or industry focused and managed by CEO. These may include agendas like controlling of costs at every step of business model, delivering cobots to customers within the deadline and raise the company’s Net Promoter Score by a defined percentage within a year. oThe goals may vary forsales, wherein it can be finding 100 new clients for company’s new product, selling and following up to see response and suggest product modification to spike product review and improve sales. This brings back to the entire circle of capturing revenue for a nucleus goal of company revenue generation. oThis modelling also clears the logic that each manager is responsible for meeting his goals and not accountable for other units’ performance.

2. Making Informeddecisions: With Integrated Business Planning across supply chain network, each unit and department is given clear goals and little central planning to ensure cost control. oIncluded within the IBP process, the company business models remain adaptive to sales and operations planning (S&OP) principles which further helps in improving its overall supply chain and logistics. It also works on setting up actionable goals that aim to build visibility as to how each unit is working and affecting decisions to financial goals. oThis division of goals panning across the organization is more focused on meeting the company goals at large. This indicates that the business requires collection of data on time and using the same to issue reports so managers can undertake and make informed decisions in real time. This also often requires buying ERP and other software. Better visibility of business proceedings: Alldepartment heads participate in monthly business review, wherein they assess the company progress and achievement of company goals. These strategic planning follow up meetings definitely work in the favor of employee as well as management alike to gather ideas, insights and walk through the set KPIs.