Guide to Transitioning from SAP APO to IBP

⇨ Transitioning from SAP APO to SAP IBP offers businesses enhanced supply chain planning capabilities through a cloud-based platform built on SAP HANA, enabling faster processing speeds and real-time analytics.

⇨ Key benefits of IBP include improved user interfaces, advanced integration capabilities, and the introduction of 'touchless planning,' allowing planners to focus on strategic tasks while automation handles routine decisions.

⇨ Successful migration to IBP requires thorough assessment, data migration planning, comprehensive training, process re-engineering, extensive testing, and continuous support to maximize efficiency and effectiveness.

Transitioning from SAP Advanced Planner and Optimizer (APO) to SAP Integrated Business Planning (IBP) is a strategic move for many businesses aiming to enhance their supply chain planning capabilities with more advanced, cloud-based solutions. SAP IBP provides a more integrated, user-friendly, and real-time planning experience compared to the older SAP APO system.

Before embarking on the transition, it’s important to first understand the key differences between APO and IBP:

• Technology Platform: SAP APO operates on traditional database technology, whereas SAP IBP is built on SAP HANA, which offers faster processing speeds and real-time analytics.
• Deployment: SAP APO is typically deployed on-premise, while SAP IBP is a cloud-based solution, offering greater scalability and accessibility.
• Functionality: IBP provides enhanced functionalities with improved user interfaces, integration capabilities, and real-time scenario planning.
• Modules: While APO includes modules like Demand Planning, Supply Network Planning, and Production Planning, IBP covers a broader range including Sales and Operations Planning, Response and Supply Planning, Demand Planning, and Inventory Optimization.

In the IBP world, SAP is championing a paradigm they call “touchless planning,” essentially meaning that the planner touches the system only when absolutely necessary. This is made possible first by the presence of robust consumption data, master data, inventory data, planning data and order data. Once all this data is accessible, AI methods can be used to establish rule frameworks and an operating environment where the system will directly propose actions to the planner. All the planner has to do is accept the proposal or make any required modifications. And this can be done on a batch level and nearly fully automated.

“Planners in most supply chain organizations have traditionally managed an increasing volume of SKUs as the company grows,” said Marc Hoppe of SAP Germany. “But it’s not feasible to keep adding more planners as the SKU population grows, so the only way to solve this is through increased automation.”

Transitioning to SAP IBP from APO is not just a technical upgrade but a strategic enhancement that can significantly impact an organization’s supply chain efficiency and effectiveness. Proper planning, skilled execution, and continuous improvement are key to maximizing the benefits of this transition. Here are nine recommended steps to follow to ensure a smooth transition.

Assessment and Planning:

• Conduct a thorough assessment of the current APO usage including customizations, integrations, and specific functionalities that are heavily used.
• Define clear objectives for the transition to IBP, such as improving forecast accuracy, reducing inventory costs, or enhancing collaborative planning.

Data Migration:

• Plan for data migration, which includes cleansing, mapping, and validating data to ensure accuracy and completeness when transferred to the new system.
• Consider using SAP data services or specialized tools designed for data migration to facilitate this process.

Training and Change Management:

• Develop a comprehensive training program to familiarize the supply chain team with IBP’s functionalities and interfaces.
• Implement change management strategies to address resistance and ensure a smooth transition, emphasizing the benefits and improvements that IBP brings over APO.

Process Re-engineering:

• Revisit and potentially redesign business processes to leverage the advanced capabilities of IBP fully. This might involve redefining roles, responsibilities, and workflows to fit the new system architecture.

Testing and Validation:

• Perform extensive testing including functional testing, integration testing, and user acceptance testing (UAT) to ensure the system performs as expected in all scenarios.
• Validate the system with real-life data and scenarios to check the accuracy of planning results and system responsiveness.

Phased Rollout:

• Consider a phased approach to the rollout by starting with less critical modules or business units, gradually expanding as the team gains confidence and the system stability is assured.
• This approach helps mitigate risks and allows time to address any issues before a full-scale implementation.

Continuous Support and Optimization:

• Provide ongoing support and training post-implementation to address any user concerns and optimize system usage.
• Regularly update the system and adjust processes as needed based on new features released by SAP and evolving business needs.

Leveraging New Features

• Take advantage of IBP’s real-time processing capabilities and what-if scenarios to enhance decision-making processes.
• Utilize the improved collaboration tools in IBP for a more integrated planning process across different functions of the organization.

Monitoring and Evaluation

• Establish metrics and KPIs to monitor the performance of the new system compared to the old APO system.
• Regularly review system performance and user feedback to continuously improve the planning processes and system functionalities.