The fight has already gone beyond 15 rounds (i.e. Balanced Scorecard … really? A decent thing to do in a conversation like this. 4) Pro-active financial risk management, inc. foreign exchange exposures. We agreed not to use any acronyms like S&OP or IBP, but first build some basic underlying planning capability and knowledge. I was thinking about governing like SCOR is governed for supply chain process. * S&OP is a modular process and tool that leads to integrated business planning. These keywords were added by machine and not by the authors. Is that still the accountability of IBP? for one company I worked for I translated the apparent business strategy into Q > S > D > C for my staff, so they very clearly knew how to make “trade-off decisions” in their day to day work. In this “flat” world the ability to match resources of supply with true demand can get buffered, not counted, wasted, over ridden in many forms using traditional accounting or even specialty enterprise tools creating enormous waste, missed orders etc. Funnily enough, once they knew what the goal-posts where, my team then proceeded to break every supply chain KPI record in corporate history and maintain that for years. The Office of Strategy Management (OSM) as proposed by Kaplan & Norton in 2005 describes integrated planning as I see it and it comes close the definition we came up with in this blog. In my company we do not call the S&OP process … S&OP… we call it SEC (Sales Estimating Committee) … I am not bothered by the name IBP — I am bothered by the disingenuous portrayal of IBP as something new and fresh. By examining these phrases as well as two major alternatives, through the dual lenses of English grammar and IT module naming conventions. 2) “Continuous improvement” to me implies that there is a structural element of a mature process, next to the monthly fine-tuning. * The definition may require some footnotes to make it clear, standard, acceptable. Even a hardline S&OPer like me is tempted to accept that the *paradigm shift* from S&OP to IBP may be feasible. Jon, Calling it IBP does not remove those issues. It can provide the future bandwidth of our plans. One of my objectives in over 5 years of blogging about IBP, is to start these open conversations. For those who are seeking an even tighter definition than the one that we developed I offer some words of caution. IBP needs to be holistic, calling it a process only undermines a holistic approach. I noticed that OW weighed in … I have my old train the trainer materials from OW. Real S&OP is almost impossible to manipulate by operators or financial engineers and becomes an organizational truth all roles and begin to trust and thus build trust and collaboration through numbers ! >> Niels, Patrick, and others – what are your thoughts? Your explanation also makes me think that E2E value chain planning, or just value chain planning, might be a good descriptions as well. And I have been reading, researching, writing and practicing IBP for many years. The S&OP planning process can run at ANY frequency or as “real time” as the appropriate, demand, supply, inventory, lead time information can be synchronized. And of course rightly so, since they originated it. Thanks for sharing this with the group Niels!!! Although I don’t know your product, I think there is a big future for things like prescriptive analysis. There are many different IBP definitions, one of them being ‘advanced S&OP’. Furthermore calling out budget & strategy as goals to achieve already suggests we have to operate in the tactical horizon. In addition to providing substantial bottom-line benefits, the Integrated Business Planning process ensures early focus on any potential gaps in business performance - it allows organizations to predict and respond positively to changing conditions, in plenty of time. And I know you got a lot of things right. They will say WTF??? * Infor have moved from “Supply Chain Planning” to “Integrated Business Planning” and now back to “Supply Chain Management” (http://www.infor.com/solutions/scm/).

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