Guessing Your Profits
Do You Know Exactly Where Your Profits are Coming From?
If you are relying on information from your financial system, you can only guess the best sources of profit and the greatest opportunities to reduce losses and improve profitability. Today’s companies are typically complex and highly diverse with many customers and products sold in through different channels and in different ways.
Did you know that as many as 20 percent of your products and customers are unprofitable? You won’t find that in your financial system!
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.