The Integrated Business Planning process starts with top management setting the strategic targets for products, sales, operations, and finance. Then, senior management evaluates the detailed approaches by which these goals can be achieved. Different approaches are:
• By going into new markets (global or local)
• Extending the product portfolio to new channels
• By improving the operational capabilities of existing products in the traditional channels
• By acquisition or selling of brands

Once the overall company plan reflects the corporate strategy, an Integrated Business Planning process links strategic targets with tactical and operational planning on all hierarchy levels of the enterprise. All downstream plans are given specific business targets, in order to ensure the adherence of strategic targets. These plans are met by alignment of the demand for products within the various channels of the company with supply taking into consideration goals of working capital reduction, improved inventory turns and increased gross margin. Thus supply, demand, and profit make up the three key dimensions of the Integrated Business Planning process.

1. Sales revenue planning
The strategic targets obtained at the outset of the Integrated Business Planning Process are converted into sales targets (opportunity forecasts) taking into consideration the overall corporate objectives of profit margins and revenue.

2. Demand Planning
• Demand Forecasting
Demand forecasting relies on tools to perform time series-based analysis to come up with forecasts at different levels in the product hierarchy – down to the SKU/customer level.

• Demand Collaboration
Demand collaboration is supported by tools that capture forecast data from the enterprise network partners like dealers, distributors, regional sales, etc., and manage the data in a centralized environment. These tools need to have intuitive user inputs, aggregation to higher levels of abstraction, and the ability to represent product and geographical data.

Figure A. Integrated Business Planning Process

• Demand Shaping
Once the unconstrained forecast has been generated as part of the demand forecasting process, the forecast needs to be refined based on events such as promotions, downturns, and new product introductions. The system should predict and shape consumer response by building a business strategy that incorporates forecasting and promotional impacts into the demand plan. These solutions also should determine when and how to price and promote products -- throughout a product's lifecycle -- to achieve revenue and profit objectives.

• Consensus Forecast
The management team should be able to incorporate the corporate goals for profitability and revenue targets into this function. Finally, there is a need to arrive at a consensus forecast across the top level, bottom up and middle out forecasts. Ease of use for the end users is an important consideration for this technology to ensure sufficient user adoption.