Accurate business decisions, especially forecasting, require accurate data reporting. That is, data reporting that’s not open to interpretation filtered through intuition, because that’s where mistakes occur – if it doesn’t feel right, it must not be right.

This problem with data interpretation has been a significant problem since Day 1 of modern business accounting and forecasting. Disparate sources of data are corralled by division managers and accountants via hundreds of spreadsheets, which are then imported into new spreadsheets by department managers and accountants for their reports, with new data sets in new spreadsheets interpreted by the analysts, who finally create new sets of spreadsheets to report their data analytics to the C-suite.  Along the way, errors may be introduced, data overlooked, and incorrect data imported. These mistakes may be carried over hundreds of times by the time of the analyst’s report, leading to C-suite decisions built on incorrect – or at least imperfect – data.

But you’re probably already aware of this.

sas cpm

Channel profitability tab shows actual and budget for product types. Bar chart filters net contribution detail crosstab which can be filtered by customer type and period

 

SAS CPM shows the real cost of doing business.

SAS Cost and Profitability Management solves reporting in an innovative way. It’s a business analytics application that helps you identify, analyze, and manage the key cost drivers of your business so you can see how they affect your bottom line. This allows you to make informed decisions that streamline processes, deliver revenue growth and reduce costs company-wide.

Until now, it’s been difficult to measure how every component of your business added value: products, services, processes, and customers. In SAS CPM, costs are captured at the activity and transaction levels, so you can assign them and corresponding revenues to different dimensions, to accurately measure their costs and profitability on your P&L.

sas cost and profitability management

PA Summary – resource, activity, and cost object tabs each have two views and can be further filtered by quarters and account type.

SAS CPM reports business data anyone can understand

SAS Cost and Profitability Management allows anyone to understand the data, not just finance experts. Management, marketing, and operations personnel can better understand their division, department, channel, product, and customer’s measures of profitability. SAS CPM provides answers to questions about precise process or activity costs, and the profitability of customers, products, and distribution channels; and provides insight into understanding what drives costs, profit, and value. This powerful and accurate data leads to better decision making and enables users to manage profit and performance metrics across all levels of the business.

sas cpm

Report for a bank client shows the net contribution of each customer by different account(product), activity, etc. Interacts with profit cliff

 

Finance pros love SAS CPM it for its flexibility

For Finance pros, SAS CPM is not tied to a specific costing methodology and supports hundreds of costing methods and theories. This allows flexibility in modeling how your business operates.

Traditional cost and profitability management solutions are typically focused on modeling and don’t offer much in the way of systems integration, data management, data cleansing, reporting, and analysis. SAS CPM combines visual business modeling with advanced reporting and analysis and powerful data management to provide critical intelligence to support performance management initiatives.

sas coat and profitability management

Left: correlation matrix of volume, forecast, and GDP. Right: Forecast of Volume with population as the underlying variable.

 

But it gets better: The modeling in SAS CPM is fully multidimensional with the ability to create accounts using multiple dimensions in every module. With a wizard-driven, point-and-click, drag-and-drop model navigation with dimensionality, SAS CPM allows users to easily perform sophisticated cost modeling and profitability analysis while maintaining full control over techniques, rule use, ETL processes, and assignment creation. You can even run what-if analysis to model how changes in driver volumes affect costs, profit, and resource requirements. It’s an intuitive, powerful modeling environment.

And it’s fast: SAS CPM runs and modifies models light years faster than standard write-to-disc technology. Complex models that used to take hours or overnight to update can now be run in a mere fraction of that time. SAS high-performance in-memory modeling can quickly identify issues and provide weak links in supply chains, underutilized capacities, and opportunities for cross-selling and upselling.

sas cpm

Bubbles are colored by profit and size by number of complaints received

SAS CPM helps businesses understand and properly evaluate the actual costs and performance of resources, activities and cost objects with accurate data, not intuition, allowing a business to maximize the value of its products, services, and customers. With these quantitative insights, managers and executives can make confident decisions regarding resources, processes, marketing, and performance.


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