The Role Tailored Integrated Business Planning Model (RTIBPM) is the extension of the Microsoft Dynamics Customer Model that has been developed in order to build Integrated Business Planning System based on the Microsoft Dynamics NAV product. The RTIBPM consist of Persona Definitions, Integrated Business Planning Process Model and a set of Templates to support processes. Fifteen Persona roles were adjusted to fit the process model that includes 17 base processes with over 80 tasks. Each persona is assigned to multiple steps that require producing one or multiple documents.

Fact Sheet

Business Process Modeler

The Business Modeler is the vital part of any Integrated Business Planning system. Even though a company can model their operations using Excel spreadsheets, such models are not linked to actual day-to-day operational data to provide feedback and the are difficult to maintain.

The Business Modeler must integrate different aspects of the planning process into a single planning environment. For example, the Product Development department should be able to publish product release schedules, the marketing department should allocate marketing resources for new product releases, the sales department should allocate sales resources and estimate sales, etc. This should automatically translate into revisions for plant capacity plans, financial plans, cash flow forecasts and raise “Red Flags” if the company does not have the available resources  at every level.  At the same time, feedback has to be provided from the operational ERP System to verify model performance and allow recalculating of model parameters based on actual results. All these operations have to be intuitive for the end users who understand and follow well-defined Integrated Business Planning.

The Modern Business Modeler has to the have following features:

  • Allow definition of a parameterized company business model that links to the company Strategic Plan, Product Plan, Sales & Marketing Plan, Financial Plan and Supply Chain Plan
  • Allow to perform upward looking “What If” simulations
  • Has to integrate Sales & Operation Planning activities
  • Has to be linked to company operational data and provide model feedback about company actual performance
  • Has to support Work Flow Management focused on exception handling.

Integrated Business Planning Process

Integrated Business Planning (IBP) has evolved from Sales and Operation Planning activities and has become a methodology widely used both by manufacturing and distribution companies. But what is Integrated Business Planning and what transforms the classical S&OP into next level activities?

First and foremost IBP is the Process in which the main objective is to maximize results from the company’s strategic objective point of view, while S&OP is just a process with the objective of balancing supply and demand. Company strategic objectives can be defined as Maximizing Revenue, Maximizing Profit, Increasing Geographical Coverage or Providing Products with most Features. Traditional S&OP cannot link day-to-day operations to the strategic objectives of the company. The Integrated Business Planning Process was designed to fill this gap in the company planning and execution process. The following flowchart shows three levels of Integrated Business Planning Process activities:

The IBP Process has tree levels and starts with the strategic planning and development of the company operational business model. This business model cannot be developed in one day – it should evolve with the company as more factors affecting company performance are recognized. The Business Model has to be built at an aggregate level and should integrate a Strategic Plan, a Product Plan, a Sales & Marketing Plan, a Financial Plan and a Supply Chain Plan (See Flow Charts Below). Even though a company can model their operations using Excel spreadsheets, such models are not linked to actual day-to-day operational data to provide feedback and are difficult to maintain. Modern IBP systems use parameterized Business Modeling Tools linked to the various data sources and provide live feedback for the model and company performance. Such Business Modeling tools are optimized for upward looking “What If” simulations and exception identification and handling thus saving companies thousands of hours every year.

Strategic Planning Model

Product Planning Model

Sales & Marketing Model

Financial Planning Model

Supply Chain Planning Model

The second Level of the IBP Process is the Sales & Operations Planning (See Flow Chart Below) extended with a review of other company plans. Changes in Sales & Operation Planning have to be linked back to company strategic plans and trigger exception “Red Flags” whenever any limitations can be identified. For example, an unexpected increase in demand should trigger revisions in financial and capacity plans as early as possible to allow taking corrective actions.

Sales & Operations Planning Model

The third level of the IBP Process is the actual execution level. IBP Model has to be linked to the operational ERP system and provide feedback to the model about the company’s actual performance. And once again, “Integrated” is the key term describing the execution level of the IBP Process. Information has to be automatically fed back to the Business Model to adjust key model parameters. Feedback has to initiate model revisions and corrective actions which will help the company maintain visibility of the performance and align actions with strategic objectives.

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