Integrated Business Planning
Integrated Business Planning
Integrated Business Planning (IBP) refers to the technologies, applications and processes of connecting the planning function across the enterprise to improve organizational alignment and financial performance.
IBP accurately represents a holistic model of the company in order to link strategic planning and operational planning with financial planning. By deploying a single model across the enterprise and leveraging the organization’s information assets, corporate executives, business unit heads and planning managers use IBP to evaluate plans and activities based on the true, economic impact of each consideration.
Analyses
Companies use IBP to translate insight into financial impact by providing analyses such as:
- Identification of top financial (profit) drivers
- Answers to “what-if” questions
- Simulation
- Optimization to any variable or ratio, including balance sheet, profitability, NPV, cash flow, etc.
- Intelligent sensitivity analysis
- Modelling infeasibilities
- Understanding of unique performance driver relationships
- Opportunity costs and marginal economic value
Benefits
IBP transforms planning into a decisive competitive advantage by:
- Providing an integrated planning platform across various departments such as marketing, operations and finance
- Creating an holistic understanding of performance drivers
- Quantifying the financial impact and interdependencies across planning alternatives
- Optimizing strategic planning and resource allocation
- Balancing sales and operations planning for profitability
- Increasing business flexibility