What Is Integrated Business Planning?

Integrated Business Planning (IBP) is the business planning process that extends the principles of Sales and Operations Planning (S&OP) throughout the value chain. It is to create a bridge between strategy and execution. IBP is a next step for companies that already have an S&OP process in place. It is a next step because it integrates the Financial Planning Cycle. The financial function will become part of this cross-functional process. In most companies the business owner of this process will change as well.

The main goal of IBP is to ensure that all departments within an organization are aligned and working towards the same objectives. By integrating all planning processes, IBP allows organizations to develop more accurate and reliable forecasts, make informed decisions, and improve overall performance.

Integrated Business Planning (IBP) is an expanded form of Sales and Operations Planning (S&OP) that spans the end-to-end value chain of a business, and ties strategic, profitability-related objectives with short- and mid-term operational planning decisions through cross-functional scenario analysis — informing decisions around more profitable supplier collaboration, demand shaping, marketing,  product growth/development, and more.

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Integrated Business Planning (IBP) is an approach (considered to be best practice) that incorporates financial and operational data from across the organization. It enables companies to maximize their output by linking strategic plans with sales, operational, and financial plans, giving greater visibility of the relationships between resources, capabilities, and results. The organization can use IBP to collectively produce an agreed go-to-market plan, to which every department has contributed.