Integrated Corporate Planning

Company-specific planning solutions

The planning models of companies used so far don't sustain the current requirements due to changing basic conditions. Especially the annual budgeting process is resource and time-consuming and ties up management capacities. Yet it is too rigid to enable fast adaptions; planning data is often obsolete by the time budgeting is completed.

Furthermore, an orientation on the corporate strategy and the essential company figures is missing: Segment plans (plans of sales, turnover, overhead expenses etc.) are, in this regard, insufficiently aligned and rarely integrated. Constituted planning instruments and tools rarely fulfil the requirements which a complex and dynamic planning environment demands (e.g. simulation and comfortable planning version, automation of routine planning tasks, continuous planning, and visualisation of results).

New regulation and performance management approaches like Beyond Budgeting initiate at this point and demand a radical renunciation of the previous model.

Consulting approach of J&M

J&M develops company-specific planning solutions together with their clients – tailored to the problems in the company. Starting points are corporate goals and essential figures. Based on these, performance goals and measurements are being defined within a Balanced Scorecard which leads to concrete operative specifications for the segment plans.

Together with our clients we develop an integrated model which includes result, balance and cash flow planning in addition to the logistic segment plans. The level of detail within the segment plans can vary; they are however based on standardised premises given by the BSC. This supports a consistency of strategic goals and improves communication of company departments.

Moreover, there is a dynamic component: Planning is complemented by quarterly rolling forecast by which current changes in the S&OP planning can be included in the result and cash flow planning.

For the implementation we rely on standard software (SAP BW, BW-BPS, SEM-CPM, Integration with SAP R/3, APO) in order to benefit from their advantages e.g. high consistency and integration of data, linkage to third systems by predefined BAPIs, release assurance. BW-BPS impresses due to his role as integrator, predefined planning functions and user-friendly frontends (Excel, WEB).

The interaction of the different modules has to be analysed client-specifically. On the basis of the business case – supported by the creation of a prototype solution, if needed – J&M evaluates benefits and costs of the project.

Benefits of an integrated corporate planning

Benefit from an integrated corporate planning – J&M supports you in achieving your goals with expertise and a consequent project management.

  • Increase of efficiency due to reduced time and costs of planning processes
  • Increase of flexibility by determining the best depth of planning (no detailed budgets in all areas) and horizon of planning (transfer to rolling forecasting if applicable)
  • Synergy effects and transparency due to consistent planning models across all functional and corporate boundaries
  • Reduction of the manual planning and coordinative effort due to use of modern planning instruments
  • Illustration of the planning processes with standard software in order to benefit from advantages e.g. high data integrity and data consistency (for master and transaction data), maintainability of systems and reduction of interfaces
  • Development of an integrated planning concept

J&M develops, together with their clients, a company-specific planning solution. The concept is aligned to the evaluation of the current situation as well as to corporate goals. Best practices and experience from various branches influence our conception.

Preparation of a Business Case

Based on the business case J&M evaluates benefits and costs of the project. Each approach for redesign and implementation of planning solutions are being aligned to company-specific facts and conditions.

IT and Planning Process Redesign

J&M analyses business processes in the area of planning, identifies important key processes from the redesign's point of view and develops harmonised planning processes based on SAP.

Implementation

In the implementation phase we focus on creative solutions for our clients, these enable a fast and effective realisation of the new planning processes with SAP BW/SEM-BPS, FI/CO and APO.

Contact Performance Management

Boris Reuter Dr. Boris Reuter
Partner