A Vision coming to Life

IBP decisions can be segmented by machine centric S&OE decisions and human centric IBP decisions. This new planning paradigm was suggested by my colleague Hein Regeer and I in a Foresight article in 2021

Our article was a continuation of my articles autonomous supply chain planning (2019) and Technology Support in Integrated Business Planning: Automation, Augmentation and Human Centricity (2021), where I lay out a foundation of forecasting/planning horizons and how each can benefit from advances in technology. The automation of short-term supply chain decisions was already happening before 2021 and has since been accelerating. Gartner estimates that 65% of short-term supply chain decisions can be autonomous by 2026.

Six months ago, I shared this slide with the IBPcommunityforum, a group of 100+ IBP practitioners, highlighting that many IBP decision are repetitive and can be largely digitized and supported by intelligent agents for automated and augmented decision making.

Last week I learned about the (to my knowledge) first data-to-IBP decision analysis in preparation for the deployment of digitized human-centric IBP decision making for a global company. Once this deployment becomes a reality, mid-to-long term IBP decisions will be digitized and can be combined with the already existing automated short-term decisions. We will be able to digitize most decisions across planning horizons, however it might be wise to simply start by mapping and digitizing the top 5-10 decisions made by IBP meeting.

It is very cool to see my IBP vision, articulated in my articles, evolving in front of my eyes! We’re in the midst of a more intelligent, automated, decision centric, and human-machine collaborative IBP evolution. Although for laggards this might be a revolution. This opens up opportunities to reimagine a more digitised, continuous, decision centric IBP operating model.

Decision centric mindset & capabilities

Although executive decision-making forums like IBP still lack a focus on advanced decisions making practices, decision centric IBP and in general a decision centric enterprise, is fast becoming a necessity. As I highlight in my article, A case for a more decision centric IBP (2024), it requires a new mindset and vision for many companies.

New decision centric capabilities will need to be integrated in (planning) operating models

👉 Enterprise Decisions are segmented (type, level, value)

👉 Data-Decision-Action process mapping

👉 Decision-centric roles & jobs

👉 Digitized decision library

👉 Decision Bias Awareness (Emotional Intelligence)

👉 Decision frameworks to minimize human bias

👉 Integrated decision quality

👉 Continuous or on demand decisions

👉 Digitized decision log

👉 Integrated decision learning

New decision centric roles like supply chain decision intelligence manager, or lead decision architect, are already created in leading companies. You can find them on LinkedIn. Decision centricity for an IBP manager will mean that, once the IBP decision are digitised, the focus will shift from discussing planning outcomes to facilitating decision streams, improve decision velocity, knowledge & learning and quality, including pro-actively manage decision bias reduction.

Decision centric capabilities like this can only be supported by new decision intelligence technology that can orchestrate decision making as a measurable data-to-action business process. It creates a system of record for decisions, where the decision itself, the steps, decision maker, the value, the impact, and the context are all data points that can be digitized, analyzed, and learned from.

This results in faster, higher quality decisions, with less time in meetings, reduced analytics waste, more employee engagement with the decision process, and a bias aware, learning enterprise.

I’m looking forward to continue to observe, discuss and contribute to this decision centric (r)evolution. If you have ideas or comments let me know. If you want to write a Decision Intelligence (DI) article for Foresight, where I’m DI editor, don’t hesitate to reach out