Implementing Customer, Product, and Channel Profitability Analytics

  • Source: SAP
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To be reliable, cost and profitability analysis must be underpinned with an activity-driven view of how an organization’s products, customers, and channels consume resources and incur costs. However, activity-based costing (ABC) contributes to more reliable customer, product, and channel profitability analysis. In fact, without this foundation, such analyses are critically flawed, and can result in inappropriate decisions and choices.

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The Analytics Experience

  • Source: IBM
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  • Published: June 3 2013
The customer is king. Learn how analytics can help with the royal treatment. Read More

Meka Pro Harnesses Analytics to Improve Profitability of Manufacturing Projects

  • Source: IBM
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In this case study, you'll find out how Finnish manufacturer Meka Pro was better able to achieve economies of scale and meet customer needs. Read More

From VAR to Solution Provider: Five Strategies for Business Transformation

  • Source: Computer Economics, Inc.
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The traditional value-added reseller (VAR) business—comprised of companies that add features or services to an existing product and then resell it as an integrated product or complete solution—has become more challenging, with declining product margins, increasing competition, and lower-cost alternatives to proprietary products. The pressures are causing many VARs to grow their businesses from simply selling products to offering more comprehensive solutions built on a richer set of services and recurring revenue models.

For decades, VARs have been an important channel for original equipment manufacturers (OEMs), like computer manufacturers and software vendors, to reach customers. The “value-add” can simply be to provide local implementation and hands-on support or it can involve adding other hardware, software, and services to tailor the OEM’s product to a specific industry, problem, or use. In many markets, customers prefer buying from VARs instead of directly from OEMs, as VARs are closer to the customer, offer local support, and are in a better position to develop long-term relationships.

The VAR business model has been attractive in the past, as it was profitable to resell OEM products. Over the past decade, however, product margins have been shrinking as the result of several long-term trends. In this report, learn about five strategies for making the transformation from VAR to solution provider. The changes needed require a new view of the business and a new mindset, to move from a deal mindset to long-term customer relationships, become invested in customer success, and transition from cash up front to realizing revenue over the life of a contract. Read More

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Get Closer to Your Best Customers: A Shift in Customer Strategies in a Time of Crisis

  • Source: SAP
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An unsettled economy needs a different approach to managing revenues. Companies must identify their most profitable customers and the most effective marketing and sales vehicle for reaching them—with a shrinking budget. And shifts in customer spending demand a fresh look at the value proposition of your current products and services. Find out how you can stay close to your customers as their needs change. Read More

Precision Marketing: Strengthening the Value of CRM

All organizations, across all industries, have one thing in common—a deluge of customer data idling somewhere waiting to be monetized. Most likely, the similarities end there. The accuracy, depth, and accessibility of data are as varied as the products and services offered by organizations. The use of this data is what separates successful organizations from those who go bankrupt. Read More

A Clear-cut Approach to Collections Is Essential for Profitability

In 2002, US suppliers wrote off more than $18 billion (USD) in bad checks. And the bankruptcy picture has certainly not improved since then. Companies that act quickly to secure overdue accounts are the companies that have the best chance of remaining in the black. The SYSPRO Collections Module automates debt collection, and can help address this acute need. Read More
 
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