Integrated Planning
Integrated planning, also referred to as extended planning, is a process that enables organizations to align their financial and operational plans across different departments and functions. It involves integrating data from various sources into a single repository and conducting cross-functional analysis and planning. Integrated planning allows for more reliable and future-proof planning that can be easily cross-checked against real-time business operations and adapted as necessary. It requires engaging non-finance employees, establishing collaboration, and providing the necessary tools and time for fulfilling new responsibilities. Download: IDC Business Planning Maturity Framework. Successful deployments of integrated planning are backed by a focus on pillars such as data and tools, people and culture, and processes.
Extended planning refers to a strategic approach that goes beyond traditional budgeting and forecasting processes. It involves incorporating additional factors such as scenario planning, risk assessment, and long-term strategic goals into the planning process. Extended planning helps organizations to be more agile and adaptable in a rapidly changing business environment. It allows for better decision-making by considering multiple scenarios and potential risks, enabling organizations to proactively respond to challenges and opportunities.
The IDC InfoBrief, ‘Business Planning Maturity Framework’, provides insights on advancing integrated planning to navigate a dynamic business environment. Integrated planning is the best way to equip your business to effectively adapt to change. In this guide, you’ll find an FP&A framework that will help you benchmark and then improve your organization’s maturity.
This IDC brief explores the factors driving the rise of integrated planning, and offer advice to drive change in your organization – supported by interviews with finance industry CFOs. Financial planning and analysis (FP&A) teams must embrace integrated business planning technology to meet their company’s evolving needs and set themselves up for success. The brief discusses best practices for integrated planning across financial, operations, revenue and workforce planning.
According to IDC, the last decade has been marked by numerous changes. After significant disruptions from 2020 to 2022, new challenges and opportunities are emerging. Rising energy costs, high inflation rates, and the rise of AI-related use cases are all significantly changing the role of FP&A teams within organizations. The finance function requires integrated business planning to enable data-driven decisions, agile scenario planning, and seamless plan execution. A step-change in business urgency and technology is finally making this possible. The move to integrated business planning represents a significant change in the way finance works with the business.
