ASSIGNMENT 22: Integrated Bussines Management 

NAME: Cinthia Segura Pérez

NUA: 117494

·       What is “Integrated Business Planning” (IBP)?

IBP is a process in which commercial purposes are aligned with the activities of the different departments of the company, such as marketing, supply chain, sales, finance, etc. to work in coordination and avoid inconveniences and imbalances during the process that hinder the achievement of goals.

·       What is “Sales and Operations Planning” (S&OP)?

Sales and operations planning focuses on the supply chain and logistics. It is the process by which different departments that directly affect the supply chain are coordinated and supported for the benefit of its objectives, such as sales, marketing, manufacturing, distribution, and finance. Compliance is sought, the fulfillment of the objectives, and the creation of a business plan since it collects data from the aforementioned departments to be used in the development of activities.

·       What are the similarities between IBP and S&OP? Mention and describe them.

The similarities are:

·       Both create an interconnection between departments to obtain information and achieve their objectives.

·       They make use of communication and research.

·       Control and analysis of the results.

·       What are the differences between IBP and S&OP? Mention and describe them.

The differences are:

IBP

·       Involves the entire business in the planning process: As these are activities of great impact for the company, these tend to be long-term, since the analysis is more in-depth, and the planning is more extensive.

·       Monthly planning focuses on optimizing results and leverages scenario planning as a tool. The result is a more agile organization: different studies and simulators are carried out to analyze how convenient the plan is.

·       Long-term view to inform decision-making.

·       Comprehensive and “living” financial plan with a range of associated KPIs: KPIs help analyze and evaluate the development of the project.

S&OP

·       Supply and demand focused: It is a short-term process that needs to collect data on a constant and continuous basis to keep up-to-date on how the market is working.

·       Meetings-heavy and output focused: As I mentioned earlier, they must analyze the behavior of the market, so the meetings will have to be constant to share the new findings and predictions.

·       Short-term plans to drive supply and output.

·       Traditional, static budgeting practices: The project budget is analyzed exactly as it is done, since it does not focus on innovating in this practice, but on comparing results to continue improving.

·       How does the IBP process work? Describe in detail.

·       Determine what is holding the business back

Here the problem to be solved is identified and determined.

·       Involve and educate employees

Involving employees in the project through programs will make them feel more committed to the project and thus they will participate actively.

·       Create a team

Responsible employees who influence other people must be identified, as well as choosing those suppliers who are committed to the company and who are certain that they will hardly fail them.

·       Establish a project / product prioritization process

Give preference to the most profitable projects, so that if you continue to sell with one that is not generating enough profits, it is necessary to discontinue it from the market.

·       Expand the influence of the finance team

It is important to involve the finance area to analyze the results and compare if the project looks profitable or if the budget is adjusted according to needs.

·       What are the challenges of IBP?

The maturity of the companies is a very big challenge, as this implies a great investment and having the tools that will allow to start with the planning and follow up on the development. Similarly, the use of technology and adapting to changes has caused many companies not to complete their projects, because they do not feel capable of resisting this change.

·       What are the advantages and disadvantages of IBP?

Advantages:

·       Drawbacks can be anticipated.

·       It is joint work with departments, so everyone's help can be efficient.

·       Create better plans.

·       Efficiency in logistics, supply, and demand can be improved with a single project.

·       Create greater value for the company by enabling it to be more profitable.

·       Increase their presence in the market.

Disadvantages:

·       It involves a large investment.

·       There may be a bad relationship between the departments involved.

·       Conflict of interests.

·       Bad communication.

·       What is the importance of IBP nowadays?

We live in a globalized world where not only must compete with regional companies, but also with international ones, so having a strategic plan generates many advantages by having clear purposes and goals that will lead the company to success.

Working in coordination with other departments ensures a greater field of analysis when determining problems, as well as a complete strategic plan that allows reacting to changing situations and strengthening its structure.

Bibliography

Ali, R. (16 de Marzo de 2021). What Is Integrated Business Planning and Why Is It Important? Obtenido de Oracle Netsuite: https://www.netsuite.com/portal/resource/articles/business-strategy/integrated-business-planning.shtml

Demandcaster, P. (SN). WHAT IS SALES AND OPERATIONS PLANNING (S&OP)? Obtenido de Plex Demandcaster: https://www.demandcaster.com/about-sales-and-operations-planning/