Integrated Business Planning Framework

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Integrated Business Planning (IBP) was introduced by the management consulting firm Oliver Wight as an evolved version of the sales and operations planning (S&OP) that they originally developed in the early 1980s. IBP is a holistic approach that aligns strategic planning, operational planning, and financial planning across an entire organization. It combines the efforts of various functions across business units, including sales, marketing, finance, supply chain, human resources, IT, and more, to make informed decisions that lead to overall business success.

The six pillars of IBP:

1. Strategic Planning: IBP begins with the development of strategic objectives and priorities. The management team sets long-term goals, defines market strategies, and identifies growth opportunities through analyses of market trends, competitive forces, and customer demands. Strategic planning sets the direction and establishes a roadmap for subsequent planning.
2. Operational Planning: Operational planning translates strategic goals into actionable plans at the operational level. This entails dissecting strategic objectives into detailed targets and initiatives for different departments and functions to execute.
   For example, the sales department establishes a plan to penetrate a new market or introduce a new product, whereas the supply chain department…