IT systems failing, senior execs say

A new survey of senior executives reveals IT systems are failing to support business planning processes in Asia Pacific. The technology survey, conducted by Oliver Wight Asia Pacific and including organisations such as MSD, Black & Decker, Laminex, Mondelez, Coca Cola and L’Oréal, found there is widespread dissatisfaction with the IT systems being used to support effective aggregate, medium- to long-term, business planning.

“The unprecedented events of recent years have tested companies to the limit and their very survival has been determined by their ability to respond rapidly to change,” said Stuart Harman, partner at Oliver Wight.

“The unrelenting disruption has proven beyond doubt the empirical value of robust planning processes and the skill of those employed to run them. However, as the results of this survey demonstrate, it has also exposed the shortcomings of the IT solutions companies are using to support their planning processes.”

The survey found that, in more than half of cases, companies do not have access to a dedicated planning system. 56% of senior executives indicated using a combination of different technologies to support integrated business planning (IBP) or sales and operations planning (S&OP). Almost one third (28%) are using Excel spreadsheets, often partnered with PowerPoint.

“Gathering data from multiple sources not only introduces problems with reconciliation, human error and data accuracy, but it also takes a huge amount of time to prepare for monthly plan review meetings. This leaves people with no time or energy to understand what has changed, the impact of change and actions needed to be taken as a result,” Harman said.

The survey asked respondents to rate the importance of 14 key features of planning systems in supporting S&OP or IBP processes and to compare this with the capability of their own supporting technology. The system features evaluated included ‘providing one set of numbers’, ‘real-time scenario planning’ and ‘the financial implications of changes to plans’.

The findings showed that for the great majority of respondents, the capability of their own technology is a long way from offering the support they need for the planning features they consider most important. In fact, on average, 20% of respondents rated their in-house systems at zero for all 14 elements.

All respondents said that ‘access to one set of numbers’ is an important feature of any planning system. This is unsurprising since a single set of numbers is a fundamental component of effective IBP and S&OP, without which the entire planning process is compromised, yet only 32% said their system does this well.

Almost all (92%) respondents ranked capability for real-time scenario planning and modelling as important. By contrast, only 7% rated their own system highly for this functionality.

“Effective integrated business planning is a robust process that needs skilled people who understand their roles within it, but it also relies on good technological support. It is a concern that such a high number of organisations either don’t have a capable system or are not using the one they have in an effective way,” Harman said.

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