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Tips To Improving Business Through Successful Sap Integrated Business Planning (ibp) Services In Ger

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By Author: Priyanka Verma
Total Articles: 14
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In today's complex business environment, it is essential for companies to be agile and innovative to remain competitive. Integrated Business Planning (IBP) has emerged as the best practice for companies to achieve their goals and increase customer retention by almost 30%.

IBP is based on traditional Sales and Operations Planning (S&OP) and connects data and strategies from operations, finance, and business strategy. Its larger benefits include greater alignment, real-time insights, and central visibility. Its implementation takes a holistic approach to organizational planning that increases KPI results over the long term.
However, it has been observed by specialists that there is a massive underestimation of the technology's true potential. Its real purpose is to help businesses achieve sustainability goals, revenue and margin growth. Still, many organizations are getting it wrong. So what could be the reason? It could be either because the organization is setting their ambitions too low or is failing to implement the SAP IBP correctly.

To ...
... help you, I have listed a few tips to ensure your IBP implementation gives the best possible ROI per your expectations.

Demand planning aligns with sales & marketing.
It is important to have an in-depth understanding of what generates consumer demand. It is, after all, a key component of developing a reliable demand plan. Hence, those closest to the customers have the best understanding of the point of consumption. They must be responsible for taking ownership of the demand plan, which has to be the sales and marketing team. In simple words, demand planning is simply focusing on the forecast.

Many businesses' key decisions are often driven by what they believe they can sell. Therefore, the organization must completely integrate the demand planning process with multiple inputs based on value and volume driven by market insights and analytics.

Compete for integration with finance.
A key differentiator of IBP is its integration of financial plans throughout the process. The active participation of the finance team should involve monthly IBP reviews with real-time testing and making adjustments accordingly. This will help the team know how the system works, and accordingly, they can safeguard the integrity of the financial projections. When you collaborate finance with the IBP core elements of demand, product and supply, greater value is delivered to your organization. It helps identify the company's financial gap and allows you to plan effectively.


Product portfolio management
During the S&OP implementation in earlier days, the organization used to include product portfolios as part of the demand review. It was a mistake. It should be treated as separate from the overall IBP process. This is because a successful product portfolio contributes to growth in sales and profit through service innovation. In the highly competitive era, the organization promotes a culture of continuously innovating their product and services. They introduce the new while phasing out old ones. It, therefore, plays an important role in closing future performance gaps.


Aligning IBP to strategic growth plans
IBP connects the strategy to the business plan and ensures effective delivery. It is essential for the decision-making process and for delivering growth. However, many organizations incorrectly use the IBP to target it for the annual budgeting processes. It is incorrect. It should be used to look out over a time horizon of 24 months-36 months. It is impossible to pan well if you are not looking beyond the end of the financial year. The point is when you successfully integrate IBP, it will naturally negate the annual budgeting plan. You should allocate resources, not focus on a short-term plan. It is not only detrimental to long-term growth but also compromises the strategic goals of the Business.


Don't get stuck in details.
Many businesses make the mistake of spending too much of their efforts drilling into the details. They focus their energies on determining precisely what will not happen in the coming months or years. They should rather focus on the overall long-term view. By drilling down on minute details, they are wasting resources and time. Look at the bigger picture that facilitates the forward planning process for the growth of your organization.
IBP leverages digital technologies, helping evaluate and meet businesses' ongoing demand and supply. It helps in the decision-making process, delivering insights to maintain the alignment of the operational plans for business functions across geographies.
At SCPLAN , we offer the required consultancy and solutions that can revolutionize your revenue operations and transform your growth capabilities. Visit our website or contact us to speak with our experts for implementation.

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