A Look into the New World of SAP Integrated Business Planning

  • by Rajesh Ray, Senior Managing Consultant and SCM Product Lead, IBM Global Business Services
  • Abhishek Kaul, Senior Managing Consultant, IBM GLobal Business Services
  • June 29, 2016
Learn an approach for evaluating migration from SAP Advanced Planning and Organization (SAP APO) to SAP Integrated Business Planning based on two real-life case studies. Learn how some implementation considerations of a cloud-based planning solution such as SAP Integrated Business Planning are different from a traditional SAP APO implementation.
Learning Objectives

After reading this article, you’ll know how to:

  • Complete the steps necessary to migrate from SAP Advanced Planning and Optimization (SAP APO) to SAP Integrated Business Planning
  • Follow a methodology for deploying SAP Integrated Business Planning
Key Concept

Planning operator functions or algorithms can be configured in SAP Integrated Business Planning to perform a specific objective, such as statistical forecasting or supply chain optimization. The SAP HANA Cloud Platform is an open platform-as-a-service that provides in-memory database and application services. SAP HANA Cloud Integration (HCI) facilitates the integration of business processes and data across on-premise and cloud-based applications.

Since the June 2016 release of SAP Integrated Business Planning 6.2, many organizations are implementing or evaluating this solution. Some of them are first-time users of any SAP planning solution, and a few others are planning to migrate from SAP’s current planning solution, SAP Advanced Planning and Optimization (SAP APO), to SAP Integrated Business Planning. SAP’s release of SAP Integrated Business Planning 6.2 also means that employees at many organizations who have worked in SAP APO now need to build skills in SAP Integrated Business Planning.

The article is divided into six sections:

  1. We start with an overview of SAP Integrated Business Planning modules and how they compare against SAP APO. This information will help SAP APO experts familiarize themselves with SAP Integrated Business Planning modules and help them understand how SAP Integrated Business Planning capabilities are comparable to those of SAP APO.
  2. In the second section, we compare the configuration objects of SAP APO and SAP Integrated Business Planning. The section describes key SAP Integrated Business Planning configurable objects with comparable object definitions in SAP APO.
  3. The third section of the article describes SAP Integrated Business Planning master data elements – how these objects need to be created or updated. This section also compares the SAP Integrated Business Planning master data management approach with that of SAP APO.     
  4. The fourth section explains the SAP Integrated Business Planning user interface (UI) layer (i.e., the UI and Interaction layer, and compares them with capabilities in SAP APO).
  5. The fifth section introduces the concept of a planning operator in SAP Integrated Business Planning. These functions or algorithms can be configured in SAP Integrated Business Planning to perform a specific objective, such as statistical forecasting, supply chain optimization, or multi-stage inventory optimization. In this section, we compare the capabilities of these planning operators with similar functionalities in SAP APO, such as SAP APO Demand Planning (DP) statistical forecasting and the SAP APO Supply Network Planning (SNP) optimizer.
  6. In the sixth section we provide an overview of the implementation and deployment approach for an SAP Integrated Business Planning project and how this is different from an SAP APO deployment.

SAP Integrated Business Planning Modules

SAP Integrated Business Planning has five modules. SAP Integrated Business Planning Sales and Operations planning was the first module to be released. Table 1 is a brief overview of SAP Integrated Business Planning modules. It lists the modules and describes their major functions.

Rajesh Ray

Rajesh Ray currently leads the SAP SCM product area at IBM Global Business Services. He has worked with SAP SE and SAP India prior to joining IBM. He is the author of two books on ERP and retail supply chain published by McGraw-Hill, and has contributed more than 52 articles in 16 international journals. Rajesh is a frequent speaker at different SCM forums and is an honorary member of the CII Logistics Council, APICS India chapter and the SCOR Society. 

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Abhishek Kaul

Abhishek Kaul is part of the global center of competence at IBM Global Business Services. He has led major process and technology innovation projects in leading companies. He has extensive experience in designing and implementing planning solutions for the manufacturing industry.

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