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The Case for Profitability
Transcript of The Case for Profitability
Fast Trac Growth Venture program
4.26.2010 IF IT ISN'T ABOUT PROFIT, DON'T DO IT. WHY ME? A.T. KEARNEY
PROFITABLY, INC. WHAT IS PROFITABILITY? THE AMOUNT OF MONEY YOU MAKE
AS A PERCENTAGE OF REVENUE BY CUSTOMER
BY CUSTOMER SEGMENT
BY INDUSTRY VERTICAL
BY CUSTOMER AGE
BY PRODUCT GROUP
BY PRODUCT AGE
BY GRANULAR GEOGRAPHY
BY ZIP CODE
BY BUSINESS UNIT
BY SERVICE OFFERING
WHY BOTHER? I REPEAT...
DON'T LOOK AT A REPORT THAT DOESN'T DRIVE DECISIONS FOCUS YOUR EFFORTS
OPTIMIZE YOUR REVENUE
REDUCE COSTS A HISTORY OF ANALYTICS EVERYONE KNOWS EVERYTHING INTUITIVELY INFORMATION SYSTEMS BEGIN
TO STORE INFORMATION...
...AND CONSULTANTS COME IN
TO HELP ANALYZE THAT DATA BIG ERP SYSTEMS,
"ENTERPRISE RESOURCE PLANNING,"
PROMISE TO CAPTURE ALL
BUSINESS DATA IN ONE PLACE ERP SYSTEMS FALL SHORT
DUE TO TIME, COST, AND CUSTOMIZATIONS
PROVIDE OPERATIONS ADVANTAGES
WITHOUT ERP INVESTMENTS TIME, COST, AND COMPLEXITY
OF INTER-CONNECTED SYSTEMS GROWS
AS ANALYTICS GET MORE COMPLICATED THE DATA WAREHOUSE
THE ONE SOURCE OF TRUTH BUSINESS INTELLIGENCE MASH-UPS &
BI IN THE CLOUD PROVIDE AGILITY TO SMALL AND LARGE ENTERPRISES ALIKE WE ARE IN A NEW ERA SO WHAT ABOUT SMALL BUSINESSES?! THINGS TO DO Some old rules apply.
So do some new ones. Define a profitability strategy. Identify dimensions that vary the most. Get real about data sources. Take the easy way out--do it manually first. Bite the bullet and
capture the data you need. Link the data (and reports)
to real decisions. Find a way to measure results. Iterate. Profitability by Product Shameless plug for Profitably thank you. firstname.lastname@example.org
profitably.com Managing Operations for Growth Like what?
Fire your worst customers
Drive down the cost of Shipping
Eliminate rogue spending on IT Hardware and Software
Drive more volume to sprout products
Constrain Real Estate costs to benchmarks
Negotiate better pricing with underperforming customers
Drive down the cost of IT Staff