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Integrated Business Planning for the High Tech Industry

Integrated Business Planning for the High Tech Industry

High Tech Industry Trends and Challenges

Fast paced changes in the industry have made the environment difficult to navigate. Companies that can’t sense and respond effectively find themselves on a slippery slope of lost operational efficiencies. It has become imperative for high tech companies to integrate strategy, operations planning, and execution to remain competitive in the market place today and in the future.

Typical changes to High Tech Companies in recent years:

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The industry continues to evolve at an increasingly fast pace


Critical Success Factors for Effective Integrated Business Planning and Execution

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Technology Constraints of the Past Inhibit the Ability to Deliver Required Capabilities

The vast majority of planning solutions are still based on the solution architecture of the past. These traditional computing constraints require fragmented and batch planning processes that are then disconnected from execution. They inhibit companies from transforming to meet today’s requirements.

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New SAP Technology: Enabler of Next Generation Applications and Capabilities

Next-generation SAP Solutions built on new SAP Technology enable the required capabilities to support integrated planning and execution and transforms the company to meet the challenges of today and the future. This is accomplished with:

– SAP HANA Platform- Foundation for Run Simple, enabling a unified data model, high performance, and real-time analytics on transactional system with predictive analytics 

– An enhanced user interface with SAP Fiori and Excel Front End

– Consumer-grade collaboration with SAP Jam


Transform with SAP

Next generation SAP Solutions on SAP HANA have become the innovation engine and foundation for transforming enterprises to meet the challenges of today and the future.The business benefits from integrated business planning and execution are incredible with the statistics below:

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Why SAP?

With innovative software from SAP, high tech companies can not only efficiently manage volatile and dynamic business but also innovate faster and run simpler.

Why Do Companies Trust SAP?

Proven Track Record of Innovation

For high-tech companies the ability to innovate is critical to respond rapidly to evolving trends in today’s marketplace. SAP HANA provides the perfect innovation platform for the future.

The Best And Most Extensive Solution Portfolio Committed to the Future

SAP Solution breadth is second to none, as is our commitment to bring industry specific, innovative solutions to the market in a comprehensive and transparent manner.

The High Tech Industry Runs on SAP

The High Tech Industry runs on SAP and this alignment will ensure your needs are primary, not secondary, to our market

“We remain focused on the success of our customers- they are at the heart of our ambitions. The passion of SAP employees has brought amazing momentum.. our best ever financial results are a testament to our strategic direction, our customer orientation and our world class employees” Bill McDermott, CEO, SAP

High Tech Industry Challenges

  • The pace of innovation is increasing exponentially
  • Supply chains are becoming increasingly complex networks
  • Global competition and margin pressure is growing
  • A need to quickly respond to changes and update action plans
  • A need to improve planning accuracy
  • Requirement to align strategy in respond to market volatility

Key Differentiatiors of SAP IBP for High Tech Firms

  • Align strategic plans with execution plans in a single system
  • Forecast both returns on assets and returns on invested capital- to understand the impact on weighted average cost of capital (WACC)
  • Assists with future capital investment decisions
  • Assess profitability by customer, channel and product
  • Accelerate planning cycle time incorporating cross functional team inputs
  • Financial, Unit and rapid “What-If” Scenario Analysis
  • Complex supply chain analysis:
    • Finished Goods to Intermediates to Raw Materials
    • Multi-stage
    • Handles all demand and supply complexities
  • Demand Variability Analysis (Seasonal, Frequent and Intermittent)
  • Network Visualization
  • Cross Functional Collaboration through SAP JAM
  • Seasonal Scenarios
  • Inventory and Demand Driver Analytics
  • Strong User Group Community

Additional Material

  • Part 1- Why is Integrated Business Planning (IBP) Critical for the High Tech Industry? | Blog | April 2015
  • Part 2- of the ‘IBP in High Tech’ Series- Business Capabilities in High Tech IBP Blog | April 2015
  • Part 3- of the ‘IBP High Tech’ Series- Integrating Financial Planning with Sales & Operations Planning | Blog | May 2015
  • Part 4- Technical Capabilities Required to Support IBP | Blog | May 2015
  • How Supply Chain Departments Novigate the Digital Economy – Blog

Learn More

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