Role of Technology in Supporting Integrated Business Planning
78% of companies say that technology is either critical or very important for their S&OP process. Data management., multi-dimensional goals and views, more dynamic business processes, more decision parameters are the key reasons why technologies are essential to support Integrated Business Planning processes.

Technology Spending Plans
40% of companies indicate that they plan to spend more on S&OP technology in 2006 versus 2005, while only 13% say they plan to spend less. Tellingly, companies with best in class order fill rates plan to spend more on S&OP technology than their peers (an average of $250,000). This indicates that the best in class companies see S&OP technology as critical to improving on their already strong corporate performance.

Recommendations for Evolving Towards Integrated Business Planning
• Move towards a single plan and process with laser focus on margin and revenue. Set up systematic “what if” Integrated Business Planning process to move to proactively identify key opportunities and risks.
• Put in place an inter-disciplinary marketing, sales, finance and operations team to manage the process and support it with the right metrics. Increase collaboration with key customers to drive to a collaborative single demand forecast. Finance teams need play a more important role in Integrated Business Planning processes.
• Move towards supply and demand shaping. Look into incentives, promotions and other causal events to shape demand. Look into profit optimized sourcing of supply and optimal inventory allocation to shape the supply.
• Invest in technology enablers that allow institutionalizing the S&OP process with application infrastructure, security, user roles, workflows in an enterprise environment. ERP systems and best of breed supply chain vendors should be considered by these companies.
• Explore pure play S&OP players which bring years of domain expertise, low cost and ability to come out with quick ROI. These tools often work on top of excel spreadsheets and help change the mindset of users from reactive ‘planning’ to an Integrated
Business Planning mindset.
• Look into technology solution providers who have deep domain expertise, as the progress towards S&OP excellence can be bumpy and will require some level of hand holding. While choosing consulting partners, look for the ability to work with technology in addition to process re-engineering as technology plays an important role to move towards the next level of corporate performance.
• Integrate the sales revenue planning process with the demand planning process – integrate the customer, supplier and internal systems into the process.
• Set up financial metrics like working capital, gross margin in addition to the operational metrics. Set up closed loop analytics and performance management systems for the top management.
• Move towards automated data transfer and planning processes that are automated and event driven. Move towards an enterprise system of record.