Good process around Profitability pays dividends
It is the time for companies to put their products and services under the microscope from different perspectives. But where do you start? How do you bring costs and revenues together?
Do you want to add focus to your product offering, but don't know how to easily calculate adjustments to your offering?
Are you considering introducing a new product, but want to calculate in advance what the impact might be on your bottom line? Do you want to calculate in advance whether outsourcing activities will reduce costs?
To answer these questions, it is necessary to understand the costs and revenues of your business. But where do you start? Because for many companies it is a big challenge to collect the necessary data and link it to products and customers. With SAP PaPM you can easily bring together and analyze information, enabling you to take targeted action for all your different types of customers!
SAP PaPM
SAP Profitability and Performance Management (PaPM) is a flexibly configurable SAP solution that makes it possible to bring together data from different sources. The lightning-fast in-memory HANA computing power behind the tool means that SAP PaPM can convert a lot of information into actionable customer and/or product insights in a short period of time. This makes SAP PaPM ideally suited for performing cost and profitability analyses. In addition, it is even possible to calculate "what-if scenarios'' based on input data and defined parameters.
Cost Analysis & Profitability Analysis
SAP PaPM has a clear user interface that makes it easy for users to do cost analysis. Users can develop their own models and thus allocate costs as they see fit. The "workflow feature" ensures transparent cost allocation, preventing
misunderstandings about definitions and structures. Clear insight into costs then enables targeted actions to be taken.
SAP PaPM can analyze revenues in addition to costs. Profitability models give companies new insights into the results of selling their products and services. This provides insight into which customers are profitable and which are loss-making. With this information it can be determined to say goodbye to loss-making customers and/or to invest more in attracting profitable customers.
What-if scenarios
An advantage of the large amount of computing power is the ability to calculate "what-if scenarios." This allows end users to store multiple versions of the same data and later adjust them using parameters and drivers they define themselves. The effects of these adjustments
are calculated, giving companies insight into the effect of potential decisions on profitability. With this functionality, price and volume trends can be calculated into future scenarios, allowing companies to make more effective decisions.
Online workshop
Want to learn more about how SAP PaPM can increase your customer profitability? On June 1, Finext's Profitability experts will organize an Online Workshop to tell you all about the different possibilities.
