Business plan feedback for cost effective business processes

Abstract

Business planning encompasses all the goals, strategies and actions to ensure company's business survival, prosperity, and growth. Literature review and analysis of business processes of production systems show that the business plan is considered as a rigid system, even though it is being prepared in a world of constantly changing business conditions. The possibility of correction of a business plan that is being realized in the course of a year is only a theoretical possibility, and the introduction of a feedback system as an element of correction remains only as an idea. The aim of this paper is to propose and introduce a system in the business technology that would be similar to the designing principles for automated technical systems. In the paper an original business planning model with feedback is presented. The model includes planning, monitoring and harmonization of business operations. It is appropriate for unstable conditions too, regarding the essential influences from the business environment, thus adapting the company's operations. It could be used in small- and medium-sized companies, in industries of all types. The model enables the assessment of present and future business results. Verification of the model has been successfully carried out at three levels.

Full text

Advances in Production Engineering & Management
ISSN 1854-6250
Volume 11 | Number 3 | September 2016 | pp 173–182
Journal home: apem-journal.org
http://dx.doi.org/XX.XXXXX/XXXX.YYYY.X.XXX
Original scientific paper
1
2
Business plan feedback for cost effective business processes 3
Ivanisevic, A.a,*, Katic, I.a, Buchmeister, B.b, Leber, M.b 4
aUniversity of Novi Sad, Faculty of technical sciences, Novi Sad, Serbia 5
bUniversity of Maribor, Faculty of Mechanical Engineering, Maribor, Slovenia 6
7
8
A B S T R A C T
A R T I C L E I N F O
Business planning encompasses all the goals, strategies and actions to ensure
company's business survival, prosperity, and growth. Literature review and
analysis of business processes of production systems show that the business
plan is considered as a rigid system, even though it is being prepared in a
world of constantly changing business conditions. The possibility of correc-
tion of a business plan that is being realized in the course of a year is only a
theoretical possibility, and the introduction of a feedback system as an el
e-
ment of correction remains only as an idea. The aim of this paper is to pro-
pose and introduce a system in the business technology that would be similar
to the designing principles for automated technical systems. In the paper an
original business planning model with feedback is presented. The model
includes planning, monitoring and harmonization of business operations. It is
appropriate for unstable conditions too, regarding the essential influences
from the business environment, thus adapting the company's operations. It
could be used in
small- and medium-sized
companies, in industries of all types.
The model enables the assessment of present and future business results.
Verification
of the model has been successfully carried out at three levels.
© 2016 PEI, University of Maribor. All rights reserved.
Keywords:
Cost-effectiveness
F
eedback
B
usiness plan
B
usiness process
External and internal influences
*
Corresponding author:
andreai
@uns.ac.rs
(
Ivanisevic, A.)
Article history:
Received 21
March 2016
Revised 3
August 2016
Accepted 16 august
2016
9
10
1. Introduction 11
Changes of business conditions affect the mechanism of income formation. This results in lower 12
profit which sometimes leads to the loss and, not so rarely, to the shutting down of the produc-13
tion system. The consequences of deteriorating business conditions can be measured and, based 14
on this, changes of some business conditions can ensue. The result of the changed business op-15
eration is calculated and if the correction is not satisfactory, the next correction is automatically 16
proceeded with. The main elements that require correction are: cost reduction, production in-17
crease, reduction of staff, reduced salaries, etc. The preparatory work included the analysis of 18
business operation of fifteen small and medium-sized enterprises, and a model was made based 19
on their financial plans, planning systems, and business results. One of these companies was 20
subjected to a test (theoretical) calculation of model application. 21
The main question of this research is: is it possible to develop a new model of planning, moni-22
toring and coordination of industrial enterprises in the course of the fiscal year, as a function of 23
the character and intensity of the impact of changes in the environment? 24
In accordance with the defined problem, the subject of the research presented in this paper is 25
business planning of the industrial enterprises in the conditions of dynamic changes, and har-26
monization of business operations with the changes taking place in the everyday environment. 27
28
173

Ivanisevic, Katic, Buchmeister, Leber
The objectives of the present study were to: 29
• identify the key influences from the environment and mechanisms of business operation 30
corrections for each influence separately, providing the appropriate mathematical calcula-31
tions, 32
• defines the procedures of harmonization of plan and business operations, 33
• propose a scientific description of the new model of planning, monitoring and harmoniza-34
tion of business operations. 35
The goal of the research activities was to develop a model of planning, monitoring and har-36
monization of operations which will apply the feedback mechanism to harmonize the operations 37
with influences from the environment, thus adapting the company's operations with negative or 38
positive impacts from the environment. 39
2. Literature overview 40
The literature covering the subjects of business planning distinguishes between the business 41
planning process which is continually implemented throughout the year, i.e. procedures used for 42
developing the plans and results of business planning [1]. In addition, there is literature that 43
emphasizes the importance of the process of business planning because it helps understand the 44
business and offers the possibility of learning [2]. 45
Planning enables enterprises to have control over the achievement of the objectives. In the 46
case of deviations from the plan, the causes of those deviations can be identified and incorpo-47
rated into future business operations [3]. The supporters of business planning emphasize that 48
the importance of business planning is particularly evident in a dynamic and unstable environ-49
ment because it reduces the level of planning uncertainty, facilitates and speeds up the decision-50
making process [4, 5]. 51
It is a well-known fact that the external environment of the company (suppliers, customers, 52
etc.), as well as the company’s employees, often want to see the business plan in order to assess 53
the viability of the business and the level of attraction from an economic point of view. Thus, the 54
process of business planning often has a purely formal character and is a result of certain inter-55
nal and external pressures due to obligations and legitimacy, instead of being an instrument to 56
ensure better business results. Several authors [6] recognized these tendencies and described 57
them. As it can be expected, the studies dealing with the analysis of the planning system in com-58
panies which do not have it as a formal process, determine different effects on business com-59
pared to those companies which focus solely on written documentation as a result of following 60
the business plan during the year without reviewing it [7]. 61
The literature proposes two options to help the company ensure continuity and stable opera-62
tion, that is, its survival and development [8]. The first option proposes greater degree of com-63
pany’s isolation from the environment which implies break of company’s relations with its own 64
environment, and, although possible, this does not give a positive result. Another option is to 65
build mechanisms by which the company would regulate its own functioning, i.e. to adapt the 66
operating system to external influences. 67
The process of adaptation introduces changes in the system in order to achieve stability and 68
continuity of business operations. Adaptability exists in the degree to which the system can sur-69
vive the changes caused by the external environment, i.e. viability equals the adaptability [9]. 70
Some companies find it difficult to adapt to changes occurring in the environment for several 71
reasons. Companies often do not have developed systems to monitor the changes occurring in 72
the environment, and systems that register different types of impacts. How to implement chang-73
es is a key question for every organization or company. Change management (also known as 74
change control) is a professional discipline, which focuses on supporting organizations on their 75
way to a successful transition from a less-than-ideal status quo to a desired future state. Change 76
management is one of the skills every manager should master to a sufficient degree because it 77
represents an integral part of business operations and the process of constant change. It denotes 78
174 Advances in Production Engineering & Management 11(3) 2016

Business plan feedback for cost effective business processes
a dispersed set of processes, tools, techniques, methods and approaches for achieving a desired 79
state through change. 80
Change management approaches have two main objectives: 81
• to assist the organization in achieving its goals which cannot be attained with the existing 82
organizational structure, functioning and client servicing, and 83
• to minimize the adverse effects of any changes made [10]. 84
The implementation of lean manufacturing methods is very important for optimization of 85
business processes. Nguyen described the implementation of lean concepts in the context of 86
developing countries [11]. Adjustment of the structure and parameters of production systems 87
should ensure the operation of these systems in more favourable manufacturing and economic 88
conditions [12]. This process is often directly linked with the starting of investment process with 89
the goal of achieving minimal production costs [13]. 90
When it comes to adjusting the mechanisms of company’s operations to the changes that re-91
sult from internal and / or external influences, contemporary literature commonly uses the term 92
of "adjustment of business operations based on the feedback mechanism"; however, it does not 93
offer an elaborate and usable model. As this is the main subject of this paper, the review of relat-94
ing literature has shown that except the theoretical explanations, there is no operationalization 95
of the subject model. 96
3. Research 97
The management and planning models are mainly oriented towards the future, giving priority to 98
the preventive control over subsequent control, with the aim of undertaking the prevention 99
measures before the differences between the planned and actual performance occur. 100
It is clear that, in a number of cases, the recognition of deviations outside the set limits is 101
much more important because, then, there is a need to redefine the initially established plans 102
and make them more flexible. Thus, the control can be viewed as a causal variable that provides 103
input for improvement of planning and organization in the event of changes in the internal or 104
external environment. 105
A number of control classifications can be found in literature, and one of them is the division 106
into: 107
• preventive, feedforward control, 108
• corrective, feedback control. 109
The preventive control (feedforward control system) was noted to be more effective when 110
applied to business processes because, in the corrective control system (feedback system), the 111
correction output is returned to the process flow. With preventive control (feedforward system), 112
the unwanted variations of inputs are returned to the flow of inputs to be corrected, or into the 113
process itself, before the output is completed. 114
Preventive control should be defined by comparing it with subsequent control which has 115
been defined by the authors for different disciplines, but which basic idea can be easily applied 116
in the field of management. 117
Considering the existence of different views, different approaches and, finally, the existence 118
of different planning systems in companies, a general conclusion is that there is no consistent 119
concept or model of a business plan that can be uniquely determined and widely accepted. This 120
paper is a contribution to the development of this issue, as it sets a model of flexible business 121
planning system based on the principles of feedback mechanism. 122
The main purpose and objective of a business plan is to define the criteria for basic principles 123
and directions of business operations during a fiscal year so that the fiscal year can end within 124
the limits of forecasted or reduced, but still above the minimum projected profit. As the business 125
plan is typically made before the start of the fiscal, usually a calendar year, there is a fact that 126
that it is very difficult to predict all operating conditions, the intensity of external and internal 127
changes, and the impact on the realization of the business plan during the year. 128
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Ivanisevic, Katic, Buchmeister, Leber
A complete basic business plan of a production system and its harmonization with altered 129
business conditions can be only considered as a guideline for appropriate corrections of the 130
business system and allocation of resources that the production system has at its disposal. 131
Bearing in mind that unstable conditions make it almost impossible to predict, with high ac-132
curacy, all possible changes of the conditions, the only option that remains is to define the busi-133
ness plan only as the starting framework so that it can be corrected in accordance with the 134
changes of various external and/or internal influences, but it also to show the company’s man-135
agement possible directions of business operations in order to stop, slow down or improve the 136
negative trends of profit and/or other performance indicators. 137
The basic principles are illustrated with short explanations and illustrations. 138
This is a flexible business plan that allows introduction of changes based on which the effects 139
on profit are automatically calculated, and it proposes orders for the correction of some ele-140
ments of the business which makes it a system with the feedback (Fig. 1). 141
142
143
Fig. 1 Block diagram of the mechanism of business planning with feedback 144
145
The difference between total income (X1) and total expenditures (X2) is the profit of business 146
system (X3pl). External and internal influences affect X1 and X2 directly and, through them, reduce 147
the planned profit (X3pl). According to the model developed in the study (PPS), the amount of 148
profit calculated with respect to external or internal type of „influences“, and the calculated value 149
for profit (X3R) are automatically introduced as the correction coefficients which number and 150
numerical value show the type of change and average annual profit K = f (X3). The whole process 151
of calculation of profit and correction coefficients is completed automatically except the 152
occurred changes which are imported manually in accordance with the criteria defined by the 153
model. 154
The necessary basis for the application of business plan with feedback (PPS) is the 155
preparation of the basic business plan which structure is adjusted to the program of profit 156
calculation with respect to the type and intensity of the change „EI influence“. 157
3.1 Business plan model 158
Table 1 shows a list and groups of elements of the plan, each with a mark that is used in the 159
overall model of business planning with feedback (PPS) regardless of whether it is an analysis, 160
computer processing or other activities. 161
Every group of the plan elements is elaborated thoroughly and the plan will include only 162
planned numerical values of the elements that are valid for a company that uses them. 163
The business plan is done annually (Table 1). It is prepared based on the projections for a 164
business year and, as such, it is unalterable regardless of external and/or internal changes. 165
There is the large number of different negative ’influences’ on business operations: 166
• external influences: inflation, reduction in sales volume, increase in energy prices, reduc-167
tion in product prices, increase in transport costs, increase in contribution and taxes, in-168
crease in business costs, increase in loan interests and other, 169
• internal influences: increase in personal incomes, reduction in production, increase in 170
credit debt, inadequate maintenance services, unplanned failure of machines and other. 171
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Business plan feedback for cost effective business processes
Table 1 The concept of business plan – basis for the model construction 172
Mark
Name of variable
Basis for the plan or calculation
X1
TOTAL INCOME
Calculated
X2
TOTAL EXPENDITURES
Calculated
X21
BUSINESS EXPENDITURES
Calculated
X22
INVESTMENTS
Planned
X23
FINANCIAL EXPENDITURES
Calculated
X24
OTHER EXPENDITURES
Calculated
X3
PROFIT X1 – X2
Calculated
173
It is certain that a unique automatic program cannot include all the influences on business 174
operations because of both a large number of variables and the fact that those variables do not 175
often act individually. Usually, there is a combination of two or three variables at the same time 176
and they often have different influence on business operations with the same performance. This 177
way, for example, the following can be combined: reduction in sales volume and price reduction. 178
In addition, the degree of change of different EI influences on business operations can neither 179
be equal. 180
By combining different number of influences of varying intensity and level that can be made 181
on business operations, then thousands of different groups of influences can be obtained which 182
would make the planned and designed model completely useless, not only because of a large 183
number of combinations but because of the numerous mistakes that can be made in case of de-184
velopment of the model itself and definition of initial numerical values of influences and numeri-185
cal valorization of the degree of their impact on business operations. 186
The selected ’influences’ can be divided into two groups and are included in the business 187
planning model with feedback (PPS) in the data processing which is used for: 188
a) automatic calculation of the profit with feedback (reduction in sales volume, production 189
price, increase in costs of business operations) and 190
b) analysis of EI influences only for the calculation of the future business results on a one-191
time basis without any corrections and feedback (increase in the price of raw materials 192
and energy prices, increase in employees’ incomes, increase in values of external services 193
and internal costs). 194
3.2 Definition of typical zones of profit and introduction of business correction coefficients 195
The basic criteria for business performance – profit (X3) in PPS model is determined by five 196
typical levels and four zones of profit (Fig. 2). 197
The set levels and zones of profit are defined in the PPS model based in Fig. 2. However, 198
considering the fact that it is an open model, the levels and zones can be changed in accordance 199
with the concepts of company’s management or specific position of a company on the market. 200
A. Start: Planned profit X3R – the first zone at the beginning of the planned period X3pl. 201
B. Second profit level which is in compliance with the established relationship between the 202
calculated and planned profits: 203
X3r1 = 0.55 · X3pl (1) 204
C. Third profit level complies with the established relationship between calculated and planned 205
profits: 206
X3r2 = 0.30 · X3pl (2) 207
D. Fourth profit level complies with the established relationship between calculated and 208
planned profits: 209
X3r3 = 0.15 · X3pl (3) 210
E. Fifth profit level complies with the established relationship between calculated and planned 211
profits: 212
X3kr = 0.10 · X3pl (4) 213
214
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Ivanisevic, Katic, Buchmeister, Leber
215
Fig. 2 Typical levels and zones of profit in case of EI influences (X3pl – planned level of profit; 216
X3R – calculated level of profit 1, 2 or 3; X3R – critical level of profit) 217
218
Coefficients for defining the profit levels are provisional (0.55, 0.30, and 0.15) and can be 219
changed. 220
Four zones of profit, which depends on the intensity of EI influences, are defined within the 221
specified values (Fig. 2) and this paper focuses only on the summary of the research (model): 222
• first zone in which the calculated profit ranges: 0.55 · X3pl ≤ X3r ≤ X3pl – a zone in which no 223
correction of business operations is performed,
224
• second zone in which the calculated profit ranges: 0.3 · X3pl ≤ X3r ≤ 0.55 · X3pl – a zone in 225
which the first level of correction of business operations K1 is introduced on a one-time basis 226
based on the criteria defined for each EI influence separately, 227
• third zone in which the calculated profit ranges: 0.15 · X3pl ≤ X3r ≤ 0.30 · X3pl – a zone in 228
which the second level of correction of business operations K2 is introduced on a one-time 229
basis based on the criteria defined for each EI influence separately, 230
• fourth zone in which the calculated profit ranges: 0.00 · X3pl ≤ X3r ≤ 0.15 · X3pl – a zone in 231
which the third level of correction of business operations K3 is introduced on a one-time 232
basis based on the criteria defined for each EI influence separately; the critical level of 233
minimum allowed profit X3kr is in this zone. 234
At the third level of correction (the fourth zone of profit), the system of feedback is 235
introduced based on three bases: 236
• first, when, after the introduction of the first corrective measures (K3.1), the profit 237
remains in the fourth zone and does not pass into the second zone, the correction is 238
repeated (K3.1), 239
• second, when, after the introduction of the first corrective measures (K3.1), the profit 240
changes and passes into the third zone and during further business operations it again 241
enters the fourth zone – the second corrective measures are introduced (K3.2), and
242
• third, when the profit is below the critical level X3kr and when the third level of corrective 243
measures is introduced, comprising repeated corrections K3.1, and then K3.2 until the 244
profit is increased above the critical level. 245
The reduction of the planned profit X3pl to the level indicated later in Fig. 4 as X3.12 is the result 246
of EI influences and depends on the SPV coefficient. When the decrease in the profit is so large 247
that the profit passes into the second zone (0.55 · X3pl ≤ X3R ≤ X3pl), the business operations are 248
corrected based on the defined criteria. 249
A new variable is introduced in the business planning model with feedback: time and duration 250
of the change, and then it is connected with the calculated results of business operations which 251
are presented through the achieved profit. This is done because of adverse effects which, besides 252
178 Advances in Production Engineering & Management 11(3) 2016

Business plan feedback for cost effective business processes
they appear in different periods of a year, never change evenly during a year, 1 %, 2 %, 3 % (for 253
example, there is an increase of 1 % every month). When we take into account the time constant, 254
we should bear in mind that the change in business plan could be analyzed ahead by defined 255
time cut-off points and/or at the moment of change. 256
A system of parallel monitoring in time (for example, every month) and at the time of change 257
have to be applied for the complete PPS model application. Therefore, conceptually different 258
profits can be defined: 259
• planned profit (X3pl), 260
• present value of the profit in the month when such a change occurred or at any other cut-261
off point X3R, 262
• average profit of a company in the period preceding the change (X3P), including the profit in 263
the month when the change occurred (analyzing the influence of the change on the profit 264
in the preceding period), and 265
• average profit of a company during a year (X3G) under the conditions when the last change 266
occurred in the current year (analyzing the influence resulting from the change on the 267
business operations throughout a year). 268
Mathematical interpretation of the influence of ’time and duration of change’ variable on the 269
profit for all three methods is presented graphically in Figs. 3 and 4. 270
271
Fig. 3 Graphical overview of defining a profit 272
273
Fig. 3 shows an average profit during a year (distributed to 12 months), X3G. 274
The numerical value at the cut-off point (i) at annual basis is calculated based on the 275
following equation: 276
 =
() 

+
 (12  )

(5)
277
where i is a cut-off point during which a profit is calculated at annual basis, m is a number of 278
months of business operations to the i-cut-off point, mG is a number of months in a year (mG = 279
12), X3Gi is the calculated level of profit at the i-cut-off point of change in EI conditions, obtained 280
as a difference between total revenues and total expenditures, X3G(i-1) is the calculated level of 281
profit at previous cut-off point of change in EI conditions. 282
The calculation of change in profit is presented graphically in Fig. 4. Fig. 4 shows the 283
calculation of corrections of business operations under the modified business conditions which, 284
in the planned year, lead to the fall in planned profit during a year at all levels. When the 285
business conditions, which have adverse effects, change and the profit falls from X3pl to X3.11 (at 286
annual level, but not below the limit which is marked with the first level X3 = 0.55 ⋅ X3pl), the first 287
correction K1 is made, and then by applying the mechanism of calculation based on ’time
288
variable’, the planned profit falls annually (or it does not fall) to the level X32.1 at annual basis. In 289
case that, for example, the business conditions change during a year and the profit falls under 290
the level 2 (X3R = 0.30 · X3pl), then the correction is made based on the criterion defined as K2. If 291
the hypothetically defined fall in profit continues during a year, then the correction K3 is made. 292
• a zone of profit at the
time of change during a
year
• a zone of profit after the
change with time
variables at annual
basis.
Advances in Production Engineering & Management 11(3) 2016 179

Ivanisevic, Katic, Buchmeister, Leber
293
Fig. 4 The change in designed profit due to EI influences and mechanisms of corrections of 294
business operations – K1; K2; K3.1; K3.2 295
296
All impacts on business, which lead to the fall in profit, and correction coefficients are clearly 297
marked within the model and they are only numerically valued due to mathematical processing 298
of the model and they can be easily defined in line with the business conditions of the company 299
which implements the described model. This has already been done because, for example, the 300
increase in the fuel price has different influence on business operations of the transportation 301
company then on the business operations of the metalworking company. 302
303
3.3 Mathematical statement of business plan elements and procedures of corrections of business 304
operations 305
In mathematical statement of the PPS model, elements of the plan can be divided into several 306
groups with the same mechanism of operation: 307
• Elements of the plan that change due to external-internal influences (through changes 308
defined as SPV). Those are the initial changes and their numerical value follow the change 309
of EI influences. 310
• Elements of the plan that change (through PKP coefficient) in compliance with the change 311
of EI influences, follow it because of the plan correction, and they are introduced when the 312
profit is in the zones 1, 2 or 3 (presented in Fig. 2). Those are the elements of correction of 313
costs which aim is to achieve the harmonization between the reduced and planned (X3) 314
profits. The numerical value of these variable coefficients of the plan correction (PKP) 315
follows, with the same percentage, the change in EI influences expressed through SPV 316
coefficient. 317
• Elements that are defined and constant until the next planned change (through KPK 318
coefficient), the so-called constant elements (KPK1 = 1·Y, that is, KPK2 = 0.5·Y; Y in %) and 319
corrections of plan costs with the aim of adjustment are reduced by the planned (X3) 320
profit. The introduction of KPK is not related to the change in SPV but to the moment the 321
profit enters critical zone 3. 322
Mathematical statement of a single case of impact – reduction in the product price: 323
X3 = (X11 + X12)·SPV – (( X211 + X212 + X213·PKP + X214·KPK + X215·PKP) + (X221+ X222·PKP) +
(
X
231·
PKP
+
X
232·
PKP
+
X
233·
PKP
+
X
234·
PKP
+
X
235·
PKP
))
(6)
where: 324
 (;) = 1 

100
(7)
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Business plan feedback for cost effective business processes
and Y is a change (reduction – ; increase +) in %, SPV is a constant change in business operations, 325
initial influence, PKP is a variable coefficient of correction of business operations, KPK is a 326
constant coefficient of correction of business operations, X11 are the revenues from domestic 327
market; X12 are the revenues from foreign market, X211 are the costs of raw materials from 328
domestic market, X212 are the costs of raw materials from foreign market, X213 are the production 329
services, X214 are the personal incomes, X215 is the investment and development, X221 are the 330
costs of credit, X222 are other financial expenses, X231 are the costs of fuel and energy, X232 are the 331
costs of transportation services, X233 are the maintenance costs, X234 are non-production 332
services, X235 are other expenses. 333
4. Concluding remarks 334
A flexible planning system, which follows the logic of thinking, that is, understanding of the 335
company's management, should result in generally accepted business philosophy around the 336
world – profit maximization. 337
The research on needs, possibilities for design and implementation of business planning 338
model with feedback were carried out based on the formulated hypotheses. 339
The achieved level of research in the field which is the topic of this paper (business planning 340
with feedback) was analyzed during preparatory works. A large number of papers deal with the 341
problem of doing business in unstable conditions and demonstrate the need to implement busi-342
ness planning with feedback. Some principles are mentioned, however, the designed model, or 343
its preliminary version, could not be discovered. In the paper, this idea was developed and de-344
signed in a model-based research. 345
Verification of a company’s business planning model with feedback (PPS), as a process of ad-346
justment of company’s business operations with plans under the influence of environment, was 347
carried out at three levels. The aim of the verification was to: 348
a) Include the most important elements of business operations in the plan which was defined 349
as alterable for companies of different size and configuration, 350
b) Examine the possibilities for implementation of model in the company’s business, 351
c) Analyze the achieved results, assess their real meaning and application in current business 352
operations, 353
d) Examine the possibilities for implementation of the model in the process of assessment of 354
business results in the future, assumed business conditions and anticipated influences 355
from the environment. 356
Based on the conducted research, the goal to develop a verified model for business planning,
357
monitoring and harmonization has been achieved. 358
The model proposed in this paper can be upgraded in various ways. One option is to upgrade 359
this model with the change management model. 360
Given the complexity of the problem, the dynamics of changes in the environment and lack of 361
the correct solutions in the literature, even in its initial form, the aim is to continue with the re-362
search on this topic with focus on: 363
• Programming of the business planning model with feedback (PPS) in some of the software 364
applications which configuration is regulated to solve the mentioned problem. 365
• Implementation of the business planning model with feedback (PPS) in a few selected 366
typical companies, according to which the entire process of planning, monitoring of 367
changes and results of business operations would be adjusted with the model. 368
369
370
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Ivanisevic, Katic, Buchmeister, Leber
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