Profitability and Cost Management

Improving profitability through insight

Improving the profitability of existing operations relies on a deep understanding of the profit-making activities of the business and being able to analyse these against customer, product, channel and divisional dimensions. To enable this, a complete financial picture of the value chain is required allowing flexible analytics to be driven through a flexible process modelling capability that incorporates both direct and indirect costs. To enable this level of insight, a powerful process modelling solution is required which extends beyond typical BI slice and dice capabilities.

A typical consumer business example is the need to analyse profitability elements (revenues, direct and indirect costs, net profits, capacity) across dimensions that extend across channels, product lines, key accounts, transportation routes, SKUs. Core ERP costing models can typically only take this so far after which a flexible multi-dimensional (what-if) modelling tool that accommodates a variety of cost and profit methodologies and role-based analysis is required.