How does S&OP drive innovation?
In several ways. By monitoring KPI’s, and identifying where targets are not being met, thus triggering management attention to spur innovation to improve performance. Also, by maintaining an up-to-date rolling plan for the year, and comparing this to financial plans and budgets, shortfalls or problems are identified which can then be addressed. Finally, for whatever plans are not met, a root cause analysis should be undertaken and discussed in S&OP meetings, which also can lead to management applying its creativity to solve these problems.
