Uncertainty Cutting Costs
Are you Cutting Costs or Hurting your ROI?
Companies who rely on the financial system to make cost cutting decisions are working in the dark. They can’t see the relationship between spending, process and results. It is virtually impossible to identify areas of improvement and cost reduction.
Inevitably spending cuts are across the board and likely to be neutral or negative in terms of impact. Cuts may remove important capability and reduce revenues. They may be reversed once the negative impact is discerned, although usually after the damage is done.
Profit Analytics is a high-value, high-return solution for improving profitability. It includes large data in-memory computing and analytics, a rules-based engine for calculating and analyzing cost and profitability, and the ability to create scenarios and explore the impact of decisions on the fly using integrated predictive analytics.
Profit Analytics, provides insights and analysis that are typically not found in financial systems. Areas of benefit include:
- Drive Future Profit Growth. Model and optimize new sources of profitable revenue, including new products or services, marketing programs, and new business ventures.
- Product Management. Price existing products and services based on profitability—not just revenue potential. Identify products with below-target margins for cost reduction opportunities.
- Customer Management and Segmentation. Identify your most and least profitable customers. Segment your customers by product, division, channel, or demographic data. Optimize your marketing dollars based on segment and customer profitability.
- Operations. Reveal the activities and processes that don’t add value and reduce your profits.Identify which operational segments contribute and detract from your overall profitability.
- Regulatory Compliance. Maintain all data relating to profitability in one application to reduce the cost of compliance. Answer regulator, audit, and management questions on profitability quickly and confidently.