Paper Technology International 2024 - Journal - Page 49
PAPERTECHNOLOGYINTERNATIONAL
Dynatrace de昀椀nes digital transformation as “the process
of changing how an enterprise leverages technology, people,
and processes to improve business performance and adopt new
business models. This transformation is cultural and impacts every
aspect of a business, including sales, marketing, operations, and
customer service. It often involves a shift towards modern cloud
technologies.”
Many companies across various industries are striving to
integrate digital technology into all facets of their business. Their
objectives are to enhance customer satisfaction and retention,
create opportunities for operational ef昀椀ciency and performance,
and adapt to rapidly evolving market conditions. This involves
overcoming traditional obstacles by replacing legacy technologies
and moving away from siloed organizational structures that hinder
continuous improvement.
Companies are embarking on this journey by focusing
昀椀rst on primary infrastructure enhancements in areas such as
human resources, accounting, 昀椀nance, and enterprise IT. These
enhancements bring unprecedented data support to these backof昀椀ce functions. Key improvements include better manufacturing
execution systems (MES) - not a new concept but vital for
operations - and upgrades to customer-facing systems like
enterprise resource planning (ERP) and customer relationship
management (CRM).
For industries including paper, packaging, and tissue, the
pursuit of digital transformation seems inevitable. But is digital
transformation alone suf昀椀cient? How effective is digitalization without
the tools to meaningfully interpret the data in making improved
operational and 昀椀nancial decisions for our industry? Take energy
ef昀椀ciency improvements as an example: how can one discern and
comprehend its impact on the broader process?
The crux of the matter is that digital transformation, while
providing more real-time data, does not inherently facilitate the
understanding of this data, summarize its 昀椀nancial implications,
or aid in making informed decisions. Digital transformation merely
supplies a plethora of varied real-time data, which, when utilized by
advanced processes and tools, can become truly transformative.
Integrated Business Planning (IBP)
Integrated Business Planning (IBP) is emerging as a crucial
concept in the paper and packaging industry. It represents the
most advanced level of sales and operations planning (S&OP),
encompassing both operational and 昀椀nancial planning across
tactical and strategic business levels.
S&OP has been a staple since the 1980s, optimizing
operational metrics like throughput, inventory levels, and on-time
shipments. However, it was initially limited by spreadsheet reliance
and a lack of comprehensive optimization engines.
IBP elevates this process by incorporating crucial 昀椀nancial
metrics into scenario evaluations. It broadens the scope of crossfunctional participation beyond traditional S&OP, intertwining
planning with execution to prevent disappointing results. The tools
and technology linking plans to execution are now enhanced by
digital transformation.
Figure 2: Cartonboard production.
IBP Characteristics:
1. People, Process, and Technology: Implementation
transcends typical IT projects, integrating best practice
S&OP processes and cutting-edge technology. This
liberates personnel to focus more on scenario planning
and managing deviations, fostering cross-functional
collaboration and technological ef昀椀ciency.
2. Optimal Results Across the Board: IBP takes
a demand-driven approach, contrasting with the
traditional supply-focused method in our industry,
optimizing results across sales, operations, and supply
chains.
3. Uni昀椀ed Tactical Business Plan: A single, regularly
updated plan spanning 3 to 18 months balances supply
and demand, driving support function requirements
and closely tied to execution with feedback for future
planning.
4. Scenario-Driven Planning: Selections from
multiple feasible scenarios are optimized based on
key operational and 昀椀nancial metrics, facilitated by
technology enabling more scenario assessments than
possible with spreadsheets.
5. Business-Wide Metrics: Selected plans are measured
by comprehensive metrics to enable continuous
improvement.
6. System Integration: Real-time data on costs, inventory
levels, order statuses, etc., are integrated typically with
ERP and MES systems, providing constant updates.
7. Output Provision for Dependent Processes: Crucial
for 昀椀nance teams, these outputs inform the most
accurate future 昀椀nancial performance projections.
Figure 3: (Left) Sprint planning.
Figure 4: (Right) Results.
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