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Integrate Business Planning for Dynamics NAV
Business Planning is also known as :
Advanced Business Planning,
Best Business Planning,
Business Continuity Planning,
Business Development Plan,
Business Development Planning,
Business Marketing Plan,
Business Plan,
Business Plan Examples,
Business Plan Help,
Business Plan Outline,
Business Plan Preparation,
Business Plan Proposal,
Business Plan Samples,
Business Plan Software,
Business Planning Analysis,
Business Planning Articles,
Business Planning Companies,
Business Planning Consulting,
Business Planning Cycle,
Business Planning Guide,
Business Planning Help,
Business Planning Ideas,
Business Planning Information,
Business Planning Marketing,
Business Planning Processes,
Business Planning Resources,
Business Planning Services,
Business Planning Software,
Business Planning Specialist,
Business Planning Strategies,
Business Planning Systems,
Business Planning Tools,
Business Planning Workbook,
Business Plans Free,
Business Project Planning,
Business Startup Planning,
Epic Business Planning,
Financial Business Planning,
Free Business Planning,
Free Sample Business Plan.
INTRODUCTION
What is the Integrated Business Planning?
Gartner defines Integrated Business Planning (IBP) as: "A set of systems, processes, and set of competencies that forms the strategic alignment and modeling capability that is missing from the traditional operationally focused
sales and operations planning (S&OP) processes. IBP links corporate performance management to S&OP, with capability for strategic and financial modeling and analytics".
IBP starts with strategic planning when company management sets targets for sales, profit, products and markets. Different approaches to achieve defined targets are evaluated and picked. Samples of such approaches can be:
- Expanding to different markets
- Introducing new products or brands
- Improving operational capabilities
- Creating partnerships with other players
- Acquiring Competitors
Once a Strategic Business Plan is developed, IBP process links strategic targets with lower level operational planning and tactical decision making. All downstream plans linked to the specific business targets and build with consideration of company strategic goals.
- Sales Revenue Planning — strategic targets are converted into specific revenue targets by product group, opportunity forecast and market region.
- Demand Planning — starting with statistical forecasts and follow through collaborative forecasts, demand shaping and consensus forecasting. The end result is unconstrained demand planned down to SKU, customer and region level.
- Supply Planning — produces realistic supply plans by considering capacity, material, transportation and other non financial constrains for a medium to long term time period.
- Profit-based Supply Demand Balancing — applies optimization strategies and produces adjusted and balanced supply and demand plans while maximizing profit.
- Management Review — involves review of IBP from different perspectives based on the established Key Performance Indicators. When gaps are identified, analysis is performed to identify the source of the problems and the business model is adjusted accordingly.
Integrated Business Panning vs. Sales & Operations Planning
APICS defines S&OP as "the function of setting the overall level of manufacturing output (production plan) and other activities to best satisfy the current planned levels of sales (sales plan and/or forecasts), while meeting general business objectives of profitability, productivity, competitive customer lead times, etc., as expressed in the overall business plan." In most cases this does not include the financial plan, capital plan and other company strategic goals. IBP is the evolutionary extension of the Sales & Operations Planning concepts. IBP extends S&OP to a multi-dimensional, cross-functional process that focuses on aligning Demand, Supply and Financial management operations with company strategic goals and objectives. The following table summarizes some of the key differences betweenIBP and S&OP:
It is not a secret that about 80% of business improvement possibilities lay within process and only 20% within systems. About 90% of companies are successfully using Excel for S&OP but a few Information System features that are not accessible in Excel are absolutely vital for the success of the IBP initiatives:
- Business Modeling and Optimization
Tools
Role Based Workflow Management System
- Integrated planning environment linked to various sources of companywide information available in real time to all participants
ROLE TAILORED INTEGRATED BUSINESS PLANNING MODEL
What is The Role Tailored Integrated Business Planning Model?
In order to develop the best ERP system Microsoft conducted 1100 usability and research studies involving 10,000 participants. During over 1700 annual site visits were customers were studied in their own environment and their real world work styles and behavior were recorded. The result of these studies was The Microsoft Dynamics Customer Model:
Today, the customer model consists of the following elements:
Models of companies for small and midsize businesses, as well as complex departments within large organizations.
61 "personas" or "user profiles" which represent a typical view of the people that can occur within an organization defined primarily by the collection of roles they have. (A role is a specific grouping of tasks that a persona is responsible for or participates in.)
Five midsize business departments (Operations, Finance, Human Resources, Sales & Marketing, IT & Partners)
15 typical departmental organization charts showing how the personas are typically organized in these five departments
33 process groups that represent the work people do within business scenarios 155 processes and subsequent tasks and steps defined across the 33 business process groups
This model has been used to develop Microsoft Dynamics products and was presented to the partner community to help develop "best in class" ISV solution. You can find more information about The Microsoft Dynamics Customer Model at http://www.microsoft.com/dynamics/en/us/familiar.aspx
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.
RTIBPM consist of Persona Definitions, Integrated Business Planning Process Model and a set of Templates to support processes. 15 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.
RTIBPM consist of Persona Definitions, Integrated Business Planning Process Model and the following set of "personas" from The Microsoft Dynamics Customer Model has been extended to fit Integrated Business Planning:
INTEGRATED BUSINESS PLANNING SYSTEM FOR MICROSOFT DYNAMICS NAV
Integrated Business Planning System (IBP System) for Microsoft Dynamics NAV was developed based on the RTIBPM and automates most of the process. The system combines information from multiple sources and creates an Integrated Planning Environment necessary to perform planning operations. The central part of the system is the BusinessModeler that allows creating multiple company models and performing "What-If" simulations with different parameters. Each model is linked to the ERP data that allows to monitor planning performance seamlessly
Table of Contents
- INTRODUCTION
- What is the Integrated Business Planning?
- Integrated Business Panning vs Sales & Operations Planning
- ROLE TAILORED INTEGRATED BUSINESS PLANNING MODEL
- What is The Role Tailored Integrated Business Planning Model?
- The Role Tailored Integrated Business Planning Model
- INTEGRATED BUSINESS PLANNING SYSTEM FOR MICROSOFT DYNAMICS NAV . 12