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SAP Integrated Business Planning (SAP IBP)

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How often do business plans fail to deliver because they overlook some apparently insignificant piece of information that turns out later to be really important?

Effective business planning is about capturing every piece of data that could impact planning calculations, applying intelligence to that data to create actionable insights, and using those insights to drive business processes. In today’s complex, fast-moving, and data-driven commercial environment, the ability to derive insights from a wide range of data and plug these insights into the systems that drive the business is a key success factor. 

SAP Integrated Business Planning (SAP IBP) with SAP S/4HANA and SAP Analytics Cloud (SAC) enables data-driven, intelligent corporate resource planning that integrates seamlessly with different SAP modules so that data-driven planning insights are fed back directly into operational processes and systems.

This blog explores the capabilities of SAP IBP and the value that Arvato Systems adds for our customers in maximizing its benefits. Future articles in this series will cover using SAP BW/4HANA and SAP Data Warehouse Cloud in a hybrid scenario and how SAP Data Intelligence can transform planning in the logistics sector.

What Is SAP IBP Using SAP S/4HANA and SAP Analytics Cloud?

SAP IBP draws actual and real-time data from SAP S/4HANA and a diverse range of other SAP applications and sources, using the power and intelligence of SAP Analytics Cloud to enable very complex analytics across hybrid systems architectures. 

Different scenarios can be modeled and visualized to optimize plans that can be fed directly into SAP S/4HANA and other operational applications. 

As a June 2022  SAP blog explains – “SAP IBP focuses on bringing inventory, sales, financial, and supply planning processes into a single, consistent, and seamless plan. It is a cloud-based solution that helps businesses effectively manage their operational and strategic goals in an integrated environment.”  

What Are the Advantages of SAP IBP?

Different sources suggest the proportion of businesses still using spreadsheets as a basis for planning could be 50% or higher. In just one example, a 2021 Fintech Finance News survey found 45% of businesses surveyed were using spreadsheets to drive their pandemic recovery planning.

SAP IBP enables organizations to extend and transform their normal planning capability well beyond what can be achieved using a set of spreadsheets.

SAP IBP offers:

  • Deep integration of actual and budget data
  • Direct application of different SAP modules to the planning process
  • Seamless extraction of actuals data and feedback of plan data directly into SAP S/4HANA
  • The performance and scalability that comes with a cloud implementation
  • Powerful and flexible data visualization
  • The power of the SAP Data Warehouse Cloud (DWC) and SAP Analytics Cloud (SAC) to apply Artificial Intelligence and machine learning to the planning process, enabling the modeling of complex scenarios based on the widest possible range of data.

As another article in this series will explore in detail, using SAP BW/4HANA and SAP BW bridge enables SAP integrated planning to deliver effectively in a hybrid scenario, integrating Cloud and on-premise so that organizations do not need to replace or reinvent existing data structures to reap its benefits.

Where Does Arvato Systems Add Value?

Arvato Systems offers a combination of extensive platform expertise built up during a long and productive partnership with SAP, wide and deep business know-how in process, planning, and reporting, and market-leading consultancy skills. 

Client engagement is business-led, not technology driven – the objective is to deliver business value rather than just a software implementation. The focus is on co-working with customers throughout to deliver the best business result. 

Arvato Systems adopt an agile approach to projects to deliver value rapidly and align with the speed-to-market expectations of our clients. All this is backed up by a high-availability global presence and reach, ensuring that customers are supported 24/7.

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Written by

 Marko Koppik - Arvato Systems
Marco Koppik
Expert for Advanced Analytics & Planning