Collaborative Business Planning (CBP) is a purpose-built module within the Qualiware Enterprise Architecture software platform that allows business users to model their business processes and calculate operational flows, evaluate resource capacity, and determine financial information such as product/service costs, activity costs, value/non-value added costs, internal service costs, and client support costs. CBP also supports an integrated resource management approach where strategic, operational, and financial groups share information for scenario-playing to accurately describe and forecast impacts of operational change on the organization. Key to this approach is improving business processes, increasing efficiencies and, as a result, reducing costs, while retaining the quality and service levels of an organization’s outputs, whether they are defined as products, programs or services.
Collaborative Business Planning (CBP) is based upon the Consortium for Advanced Management International’s (CAM-I) Closed Loop approach for implementing activity-based planning and budgeting. Beyond providing business users with a visual illustration of an organization’s key business processes, CBP captures both operational and financial information and utilized a calculation engine to help evaluate resource capacities and utilizations as well as fully loaded cost of activities, outputs (i.e. services or products) and clients.
Figure 1 shows an overview of the methodology which uses a “bottom up” operational flow calculation followed by a “top down” financial allocation based on the calculated operational flows. Key operational data requirements are output volumes (often termed “demands”), activity and resource consumption rates (often termed “efficiency indicators”), and physical resource capacities (often termed “business constraints”). Financial data is loaded from the GL at the resource level where costs are actually incurred. This two-stage calculation approach provides a means to accurately determine process and output costs as well as process optimization opportunities through scenario-playing or “what-if” analysis.
Figure 1 – CBP Methodology
By using information from a variety of organizational sources, stakeholders across the enterprise have an opportunity to both understand and collaborate on ways to improve current business processes and outputs. Figure 2 shows some of the typical applications of a CBP model in terms of operational, financial, client, and strategic management.
Figure 2 – Typical CBP Applications and Benefits
Sample CBP Screenshots:
Figure 3 – Business process diagram with calculated results
Figure 4 – Fixed Resource Data and Calculated Results
Figure 5 – Over-capacity warnings that highlight resource limitations
Figure 6 – Sample reports showing differences across various business scenarios