In this episode of SCW for Pharma, Evren Ozkaya welcomes Tolga Kula, Director and Global Head of Integrated Business Planning (IBP) at Merck Group. They discuss the benefits and necessity of an integrated business planning approach for pharmaceutical companies and how companies can create an environment that connects the supply chain, finance, and sales departments the right way.

The conversation begins by highlighting the low maturity level of IBP and S&OP processes in pharma companies. Tolga estimates that even for big players, the average maturity level would be around 3 according to Gartner's maturity evaluation.

Tolga then explains the cornerstones of a successful IBP process. This includes using an integrated database where the supply chain, finance, and sales departments collaborate and their forecasts are interconnected. Tolga also emphasizes the importance of data governance from a single platform, allowing all department workers to understand the complete business challenges and opportunities.

Evren and Tolga then discuss the value of machine learning algorithms combined with human expertise to increase forecasting precision. Evren shares his experience from his consulting days, where a simple average of previous months' data provided better forecasting than some companies' existing methods. They also acknowledge that for complex algorithms, machines can deliver even better results.

In the final segment, Tolga provides best practices and tips for IBP managers aiming to digitize their companies. He emphasizes the importance of sponsorship from all departments and initiating digitalization as an end-to-end process for the company's success.