What is Integrated Business Planning and How Does it Work?

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  • 05 September 2013
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What is it?

Integrated business planning helped economies like Singapore make their mark in the world and it is easy to see how. In general, the concept is a management process which allows businesspersons to initiate immediate and effective control and decisions over an organization.

How does it Work?

The main goal of IBP (Integrated Business Planning) is to integrate business functions that are critical. These can include anything like procuring raw materials, forecasting demand, delivering products that meet the demand, staffing different departments and providing funds for it.

What makes such an integrated and cross functional process so invaluable at the enterprise level? For one, it helps operational and sales procedures balance supply and demand. In addition it also provides Human Resources departments vital clues that will ultimately help them train and hire new employees and train them accordingly. This in turn, also helps businesses manage profitability. Since IBP processes involve how such components work together to achieve their goals, it allows businesses to work as efficiently as possible.

Another way to see how such processes work is how careful use of available equipment, software, hardware, policies and procedures can increase or hinder success in any department. In this way, CEOs and other managers can easily pinpoint areas that might be making certain operations more efficient or difficult in others.

In other words, integrated business planning means that each business component’s function is related or relies on another. This also allows a business to meet customer needs more efficiently as well. Instead of perceiving each business function as independent, the interrelation between different business processes can also prevent employees from duplicating operations and hence wasting resources.

Customer Satisfaction

The more streamlined business processes are the quicker will customer concerns be addressed. In turn this would also allow a business to attain more customers and increase profits.

How Small Businesses can Profit?

Yes, even the small business owner can achieve lucrative results from integrated business planning. For instance the owner of a small retail store can ascertain where certain relatable goods are placed with items that may also entice customers to make additional purchases. The key is to arrange operations that will set the stage to make certain actions possible and faster to implement. In this way, the store in question would automatically attract a larger clientele, earn more sales and have more chances to increase its ROI.


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