Indeed, most enterprises are facing ever-increasing competition.
The basic operational value proposition of IBP is the ability to process more with less effort and with higher quality.
As a result, IBP has become a cornerstone discipline for companies that want to grow revenues quickly, while controlling resource costs.
Business processes are pervasive in any organization.
The real power of IBP is in enabling effective decision making to control the future direction of the company.
It makes the critical link between strategic plans and the current reality, acting as an early warning system for performance gaps.In this paper, we take a look at how innovative Integrated Business Planning (IBP) can help drive the right process and the best business value in an environment where volatility is the “new normal”. S&OP was failing to get the attention of the executive, as it does not resonate with business leaders while IBP does.IBP resolves the issues that companies have around integrating and organizing people within their businesses.IBP gives senior management an accurate holistic view of the business over a 24 to 36 month horizon.Unforeseen events can be detected early and be addressed with speed and agility, through planned actions rather than fire fighting; being proactive rather than re-active, and is designed to align the organization for growth and its’ strategic objectives.You may not think of the activities performed within your organization as business processes, but that is exactly what they are.As you try to improve your operations, you are engaging in a process improvement project.These processes represent all the activities that organizations in all industries undertake.Some processes are highly structured, such as high-volume manufacturing processes, while others, such as medical care that must be tailored to specific patients’ needs, are more unstructured.Rather than enhancing supply chain processes in isolation, IBP seeks to involve a wide range of stakeholders in every operational decision, so that the supply chain can truly drive the success of the entire business.In the simplest of terms, the IBP reconciles and harmonizes strategy and execution by aligning strategic plans into operational plans and bringing the practical aspects of execution (constraints, capacity availability, realistic throughput rates that have been achieved, detailed unit costing, and profitability) into the creation of strategic plans.