Enterprise value map_2_0

Deloitte Enterprise Value MapTM (Practical paths to increase shareholder value) It’s easy to say shareholder value is important. Here are two simple ways to use it: Not so easy to make it influence the decisions that are made every day: where to spend time Start at the top. Working your way down, and resources, how best to get things done, and, at each step ask yourself, How will we ultimately, how to win in the competitive improve this? This will help ensure that your marketplace. tactics support your objectives. This Map is designed to accelerate the connection between actions you can take and Start at the bottom. Working your way up, shareholder value. It is not rocket science and it at each step ask yourself, Why are we doing is not complete, but it can jump-start the this? This will help ensure that every tactic process of focusing on the things that matter most and then choosing practical ways to get leads to shareholder value. them done. Revenue Growth Operating Margin Asset Efficiency Expectations (after taxes) How Value is Created (Value Drivers) Selling, General & Cost of Goods Sold Property, Plant & Receivables Volume Price Realization Administrative (COGS) Income Taxes Equipment Inventory & Payables Company Strengths External Factors (SG&A) (PP&E) Improve Improve Improve Improve Improve Improve Improve Improve Improve Acquire New Customers Retain and Grow Current Leverage Income- Strengthen Pricing Customer Interaction Logistics & Service Management & Governance Improve Customers Generating Assets Corporate/Shared Services Development & Production Provision Income Tax PP&E Inventory Receivables & Payables Execution Capabilities Efficiency Efficiency Efficiency Efficiency Efficiency Efficiency Efficiency Efficiency Effectiveness What You Can Do (Improvement Levers: Business Processes, Assets and Organizational Capabilities) Procurement Accounts, Accounts, Marketing & Product & Account Cross-Sell/ Cash/Asset Demand & Price Marketing & Customer Order IT, Telecom & Human Business Financial Product Logistics & Service Income Tax Real Estate & Equipment & Finished Work in Notes & Notes & Business Program Business Operational Partnership & Relationship Agility & Strategic Sales Service Management Up-Sell Retention Management Supply Optimization Advertising Sales Service & Fulfillment & Networking Real Estate Resources (Excluding Production Management Management Development Materials Production Distribution Merchandising Delivery Management Infrastructure Systems Goods Process & Interest Interest Governance Planning Delivery Performance Excellence Collaboration Strength Flexibility Assets Materials & Innovation Management Support Billing Merchandise) Raw Materials Receivable Payable Management Consolidate and/or Consolidate and/or Improve coordination Increase emphasis on Rationalize targeted Implement integrated Increase emphasis on Strengthen corporate of operational, invest- Increase emphasis Establish a culture Increase focus on Increase focus on Increase focus on Increase focus on Increase focus on Increase emphasis on Rationalize and/or Rationalize and/or Differentiate treatment Consolidate or Manage procurement align business align financial Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or enterprise-wide Increase focus on Increase focus on Change What You Do high-value/high- potential customers Broaden product and service offerings high-value/high- potential customers high-value/high- potential customers high-value /high- potential customers generating revenue from company assets Acquire competitors refocus product and service portfolios Rationalize targeted customer segments markets and customer segments refocus product and service portfolios of customers/ segments applications across organizational Consolidate company real estate/facilities outsource recruitment functions on a national/global basis planning, management and planning, management and refocus product and service portfolios refocus product portfolio refocus product portfolio refocus product portfolio refocus product portfolio refocus services offered permanently lowering the company's refocus product and service portfolios refocus product and service portfolios refocus product portfolio refocus product portfolio Refine credit/days- receivable strategy Refine days- outstanding strategy governance structures (composition, selection, ment, financial, M&A, and tax strategies program planning and collaborative program on continuous, proactive perform- centered on operational partnership, merger and acquisition stakeholder relationships business agility and flexibility Increase focus on strategic assets boundaries effective tax rate roles, etc.) across business units ance management excellence opportunities reporting functions reporting functions delivery - What you provide Increase focus on Increase focus on Increase emphasis on Increase use of lower- Consolidate or Consolidate or Improve alignment of Consolidate and/or Increase emphasis on Refine and/or align Increase emphasis on Integrate tax oppor- Increase emphasis on Coordinate Coordinate Improve communi- Improve alignment of Establish process Establish Improve identification Establish Increase focus on Increase focus on Increase emphasis Rationalize and/or Rationalize and/or Improve focus on Consolidate or Increase emphasis on Increase emphasis on merchandising Develop business cation between the customer, product, Establish program/ Improve effectiveness Establish agility and - Whom you target and serve most profitable R&D, product innovation, and Rationalize customer portfolio most profitable Increase emphasis on customer retention developing and protecting intellectual on differentiated differentiated pricing across customer refocus product and refocus product and segments with lower cost delivery/ installation channels Rationalize IT application portfolio outsource design and development outsource learning and development outsource business unit strategies with align financial accounting and modular, extensible, designing for Improve focus on higher-value products designing and packaging strategies service prevention / Reduce need for tunities and issues into business planning models with low real Outsource business functions Develop low-Inventory business models designing for manufacturing management of credit/receivables management of payables across board, management, advertising, sales, project delivery as a of organizational improvement and innovation as key cross-company collaboration as a key of stakeholder groups and establishment of flexibility as key development of strategic assets as a products and services product leadership products and services capital products and services segments service portfolios service portfolios average cost-to-serve functions procurement functions enterprise strategies analysis functions scalable designs materials efficiency for distribution (central vs. local service processes estate requirements efficiency across business units business units shareholders and the service, support, and key competency structures competencies competency priorities competencies key competency - How you compete (self-service, partners, etc.) functions merchandising, etc.) public fulfillment strategies - Where you deploy resources Increase focus on Increase emphasis Increase emphasis on Increase focus on Increase focus on Improve focus on Increase focus on Rationalize and/or Increase use of lower- Differentiate service Increase use of lower- Consolidate IT, Consolidate or Consolidate or Improve alignment of organization struc- Improve alignment of Consolidate or Rationalize/ Increase emphasis on Refine/align Manage purchasing Improve focus on Maximize tax benefits Reduce number of Consolidate Rationalize and/or Increase emphasis on Improve management Increase focus on Strengthen and Increase emphasis Increase emphasis on Increase focus on Improve effectiveness Increase proactive Establish management of key Establish product, Increase emphasis on most effective sales on design for most effective sales Create barriers to cost sales channels cost billing channels telecom and network outsource outsource benefits Refine vendor financial strategies outsource product associated with major data centers, branch IT systems, refocus customer vendors with communicate mission, on risk-informed, continuous, proactive of organizational pursuit of service and process account/relationship divestiture and price-insensitive pricing effectiveness/ refocus channel/ treatment of tures and governance consolidate vendor design for production logistics and on a national/global higher-value customer use of common of credit risk across managerial, forward- stakeholder leveraging strategic - Which operations you outsource and advertising configurability/ development and advertising switching reinvestment customer segments price optimization media usage (telesales, outlets, self- customers/segments (automated, self-service, equipment and improvement and administration strategies models with business with corporate development portfolio efficiency distribution strategies basis relationships business decisions (M&A, consolidation, out- offices, dealerships, production lines and segments and components business units favorable payment vision, values and scenario-based management of looking information structures and partnerships, mergers relationships as innovation as key assets channels customization channels service, etc.) etc.) facilities deployment functions strategies strategies functions sourcing, site selection, etc.) retail outlets, etc. service mechanisms distribution channels terms ethics planning investment portfolios governance models and acquisitions organizational priority competencies Utilize tax-effective Increase focus on Consolidate or Consolidate or Consolidate or Improve alignment of Strengthen Increase use of lower- Increase focus on Consolidate or Increase emphasis on Increase focus on Increase emphasis on Improve relationship Improve agility and corporate structures Improve platform and Improve account Refocus and/or refine Improve focus on Improve focus on Consolidate or outsource order Consolidate or Rationalize/ Consolidate or Increase focus on Increase emphasis on Rationalize/ Build values and Improve integration of Improve effectiveness Increase emphasis on Target new portfolio strategies for management expansion of retention priorities and Increase focus on Convert free services higher-value outsource design, outsource property capital budgets and enterprise-wide cost product materials-efficient outsource designing for service Accelerate or defer Rationalize Defer/change timing Increase emphasis on customer segments Increase focus on key cross-business-unit management flexibility of for ownership/licens- geographies customer product innovation to fee-based services higher-value outsource service and fulfillment functions development and outsource payroll consolidate vendor outsource production higher-value products designing for consolidate vendor ethics into corporate short- and long-term of program/project operational integration products and services strategies strategies segments customers/segments support operations management program plans with financial reporting development production merchandising efficiency and self- income/expenses production facilities of capital investments high-turn products with low credit/loan performance metrics and cross-company strategies for key organizational ing of intangible relationships (pick, pack and ship, deployment services functions functions portfolio functions and partners materials efficiency portfolio culture business planning governance models with partners install, provision, etc.) business priorities standards channels mechanisms functions service needs collaboration stakeholder groups structures assets (patents, trade names, IP, etc.) Increase emphasis on Increase emphasis Consolidate or Increase use of lower- Standardize product Improve focus on Consolidate/ Increase emphasis on Improve alignment of Target new segments time-to-market and Increase emphasis on on supply chain Increase use of Increase focus on Focus sales efforts on Improve emphasis on Consolidate or outsource operations Align M&A strategies Rationalize portfolio of Design products to Increase use of lower- Increase use of Increase focus on Improve focus on Increase focus on Increase emphasis Increase emphasis on Improve agility and within current higher-value products higher-margin product quality and outsource billing cost real estate and Improve focus on catalogs with business financial services higher-value customer use cost-effective cost production outsource logistics Refine vendor/ cheaper service Migrate income to Outsource business design for Increase emphasis Rationalize raw creditworthy customer internal controls and HR and technology project quality and on people/talent quality management flexibility of time-to-production- customer satisfaction management promotions and maintenance facilities / Relocate employee retention (equipment, office supplies, segments and and distribution supplier strategies low-tax jurisdictions functions manufacturability and on build-to-order materials strategies with geographies volume (production, distribution and and services products and services ease of service operations services objectives providers materials channels channels segments regulatory compliance risk management development and benchmarking governance models sales pipelines) business operations promotional materials, etc.) products functions service business strategies Utilize tax-effective Improve focus on Outsource property Develop/integrate Increase focus on Rationalize and/or corporate structures Increase emphasis Increase number and Bypass current Design products for Improve emphasis on Consolidate or tax administration Increase use of lower- Increase quality and Increase use of lower- Rationalize/ Consolidate or Manage materials Increase emphasis on Increase considera- Increase focus on Increase focus on risk Increase focus on Expand sales and quality of product and higher-value channels / Sell ease-of-use / self- design for packing/ outsource end-user global HR practices business insight and realign product Increase focus on consistency of cost logistics and consolidate vendor outsource service for ownership/licens- on preventive sourcing on a risk identification and tion of M&A and advertising channels advertising channels/ activities cost channels forward-looking development component reuse equipment realization of targeted management and business continuity service launches directly to customers service shipping efficiency support (compliance, assessment, (internal/external, onshore/ (self-service, etc.) materials distribution channels portfolio operations ing of intangible national/global basis management divestiture options business benefits regulatory compliance planning media negotiations, etc.) offshore, etc.) information efforts assets (patents, trade maintenance names, IP, etc.) Improve Improve understand- Improve total Tailor account Improve total Improve Improve Increase use of Improve product Improve Improve identification Improve ordering and Improve Improve Improve focus of tax Leverage credit rating Strengthen and Improve identification Improve structuring Improve Improve assessment Improve ability to ing of stakeholder customer experience Increase utilization of customer experience Improve identification Improve investment Improve brand understanding of Improve design, Improve real estate Improve Improve receipt processes Improve inventory Reconfigure facilities / Utilize more Improve flexibility Develop and leverage modular, reusable management of valuable customer returns on cash/ understanding of relationship/account Improve service and vendor-managed/ procurement cash/treasury and discontinuation of production scheduling merchandise Improve service and function/department Improve Improve Tighten credit/loan to lengthen payment communicate and prediction of and launch of determination of key and benchmarking of identify and assess interests (customers, (purchasing, fulfillment, approaches to (purchasing, fulfillment, awareness / Elevate customer price customer, product development development and design and develop- recruitment and strategic planning (raw materials, intermediate receipt and storage Increase utilization of efficient production of business strong/unique partner usage, support, service, designs usage, support, service, relationships treasury funds brand image and channel support processes vendor-warehoused testing processes ment processes orientation processes processes processes management unsuccessful materials, finished and staging processes ordering and receipt support processes on proactive tax facilities equipment demand forecasting demand forecasting terms cycles and reduce governance policies industry and market cohesive program performance metrics business process partnering shareholders, regulators, processes relationships etc.) customer segments etc.) sensitivity profitability processes inventory (equipment, supplies, etc.) practices efforts components, etc.) processes processes planning interest rates and procedures trends portfolios and targets performance opportunities employees, suppliers, partners, alumni, etc.) Obtain exclusive Improve workforce Improve Improve ability to Improve Improve collaboration Improve Improve Improve processes Improve selection, Improve real estate Improve service Improve Improve accuracy and Improve customer Leverage breadth of Improve/implement Improve alignment of Increase focus on Improve identification Develop and utilize Improve value / with design, Improve Improve identification understanding of License or sell agreements with understanding of Provide staff with for generating, Improve workforce Improve credit acquisition and selection, acquisition Improve Improve Improve debt and Improve product Improve materials manufacturing and Improve retrieval Improve focus on planning, dispatch timeliness of tax Increase use of Increase use of Improve Improve incentives for vendor relationships internal control Improve identification projects with program measurement and post-merger synergy structure and of opportunities to communication and understanding of of cross-sell/up-sell intellectual capital to better market and planning and dispatch analysis training procurement program planning equity management conception/initiation efficiency of higher-value vendor and assignment flexible/expandable collaboration with collaboration with of opportunities and reporting of implement durable, knowledge transfer unique physical Decrease prices development and churn/defection partners product/service value qualifying and contracting and contracting processes quality control processes provision and cash flexible facilities accelerated/on-time to lengthen payment frameworks and and business and cost reduction increase value to resources production partners customer needs opportunities other enterprises (licenses, distributorships, customer information processes and tools processes processes processes processes processes production processes relationships processes production equipment vendors/partners vendors/partners threats operational and mutually beneficial across organizational drivers etc.) to customers assigning leads processes processes (travel, contract labor, etc.) processes and tools outflow forecasts payment cycles policies objectives financial performance programs partnerships stakeholders boundaries (facilities, land, etc.) Do What You Do Better Improve effectiveness Improve Implement proactive Increase use of Improve Improve capacity/ Improve real estate Improve salary and Improve contract Improve Improve capacity/ Improve ability to Align internal audit Improve strategy Increase integration of Improve ability to Improve agility and Develop and utilize Improve reuse of Improve identification Improve installation/ benefits administra- management Improve operational Improve financial Provide staff with Improve transport and Improve Increase utilization Differentiate credit development capa- Structure programs/ Improve analysis of Improve unique human of marketing, product and service understanding of and reactive cross- Sell appreciated Align advertising with differential pricing Improve analytical field sales and demand planning Improve pick, pack improvement and design and Rationalize order Improve coordination demand planning utilize offshore cash/ Increase use of Improve logistics/ Improve management practices with business processes integrate merged flexibility of partner of churn/defection deployment tion processes / processes risk management risk management better production delivery processes/ effectiveness of plant of standardized treatment of bilities at corporate projects to deliver managerial communication with resources - Strengthen governance approaches advertising and sales processes components current customer satisfaction sell and up-sell campaigns candidates assets pricing strategies mechanisms (based on customer value, risk, etc.) processes and tools telesales processes processes, skills and tools and ship processes processes deployment processes Increase employee (negotiation, execution and processes processes development processes quantities and timing information and tools algorithms with vendors processes, skills and tools assets and move between geographies leased real estate maintenance distribution efficiency components customers/segments of debt portfolio business and risk objectives and business-unit benefits progressively information across organizational boundaries and acquired organizations stakeholder groups organizations and networks (thought leaders, managers, self-service compliance) levels subject matter experts, etc.) - Align resources with strategies Improve Improve Improve Improve processes for Improve operational Improve audit and Utilize international Improve quality and Improve and Improve alignment of Implement/enhance Improve coordination Improve focus on Improve identification Improve cross-sell Improve adherence to Improve tailoring of Provide staff with Improve Improve Improve demand Improve capital Improve Provide staff with Improve capacity Improve design/ Provide staff with Improve terms Improve development understanding of Improve value Develop and leverage - Improve business processes Increase time spent Acquire new product responsiveness to and up-sell contracts and Develop, spin-off and communication and offerings to customer better competitive Improve utilization of Improve utilization of provisioning/ managing system processes (administration, security, payroll planning processes budgeting compliance prototyping, piloting better product planning processes, structure of better information and Improve utilization of financing opportuni- on property and consistency of Rationalize production Shorten production standardize credit A/P systems and anonymous employee and analysis of and communication most important and mitigation of operational risk partner strengths, delivered to Improve product political relationships selling and service offerings customer complaints/ approaches/models sell new businesses coordination with sales staff service staff operations, mainten- management service staff ties to minimize after- manufacturing quantities and timing cycles assessment processes with days- reporting and feed- across programs and managerial innovation processes agreements needs information installation processes processes and tools processes and testing processes information and tools skills and tools distribution networks tools facilities business cases weaknesses and customers and alliances - Hone strategic capabilities feedback distribution centers ance and changes energy, HVAC and maintenance) processes tax borrowing costs materials processes outstanding strategy back mechanisms projects information (people, process, technology, data, etc.) interests - Manage tax impacts and opportunities Improve product/ Proactively manage Sell or lease excess Improve Provide staff with Provide staff with Improve end-user Improve Improve Improve business Improve demand Improve demand Improve demand Provide staff with Improve Improve Improve Improve business Improve integration of Improve flexibility Tailor marketing and service R&D Improve effectiveness capacity to other Align product and Improve definition of better customer better customer Improve capacity/ Provide staff with Improve product and better customer Increase Rationalize Improve management Improve coordination Improve under- Improve value Improve retention and communication and Improve invoicing/ support and performance program case development forecasting forecasting Rationalize production forecasting Improve management Divest low-utilization Rationalize production communication of accountability/ communication continuity planning business processes and versatility of IT Develop and cultivate - Improve control / reduce risk sales approaches to and deployment transition points (life events, ends of of cross-sell/up-sell win-back processes enterprises coordination with service prices with product and service information information billing processes administration demand planning assessment better product and management and analysis service introduction/ processes, skills and processes, skills and quantities and timing processes, skills and information of transfer pricing real estate use of leased merchandise order quantities and timing of delinquent of payments across standing of regulatory strategic directions authority of program around improvement and disaster recovery across partner delivered to systems and good will customer segments capabilities contracts and leases, etc.) processes (production capacity, service sales channels value to customers specification (demographics, inquiry (profiles, transaction processes processes and tools processes service information processes processes launch processes tools tools tools (profiles, transaction production equipment quantities and timing accounts business units requirements and priorities and project resources priorities capabilities networks shareholders platforms - Collaborate more effectively capacity, etc.) history, etc.) histories, etc.) histories, etc.) Improve tailoring of - Satisfy customers, employees and Improve access to Adapt current Improve tracking of Improve Improve structuring marketing and Provide staff with Provide staff with Improve policies and Improve dispatch, Improve assignment Improve Improve tax manage- Improve utilization of Focus efforts on Rationalize Provide staff with Optimize accounting Improve assessment Improve monitoring Improve alignment of Improve program/ Improve ability Improve manage- Improve quality Improve value Improve breadth, Develop and utilize products and services customer interactions Solicit and respond to Improve managerial Improve demand better product, service diagnostic, resolution Increase utilization of Improve employee of procurement accounting and ment processes Rationalize production Rationalize order better product, service methods and selec- Increase use of Increase utilization of Divest low-demand/ Divest obsolete Improve collections budgets and capital and speed of depth, quality and unique information other stakeholders information and analytical tools for new segments/ (purchases, support understanding of customer needs customer feedback methods and tools forecasting and pricing of promotions advertising approaches to and competitive better product and service information processes around merchandise returns and replacement real estate retention programs transactions to measurement (direct and indirect tax product development channels higher-value vendor relationships quantities and timing merchandise order quantities and timing quantities and timing and contract tion of accounting leased infrastructure production equipment obsolete inventory materials processes and benchmarking of A/P performance and management of regulatory compliance programs with project management methods and tools to launch improvement efforts ment of regulatory compliance communication with delivered to employees timeliness of business resources (customer, channels requests, etc.) information processes appropriate staff processes management) information periods strategic priorities partners planning information product, market, etc.) customer segments Improve visibility of Improve Coordinate pricing of Optimize valuation Improve identification Improve Improve Improve technology Improve asset Align production and and costing methods Increase Improve tracking and Improve value Improve quality and Pursue joint-venture, Maintain competitive customer competitiveness of understanding of Improve use of complementary Improve product and Consolidate/realign Route low-value Provide staff with Improve terms with Provide staff with Increase focus on Improve business Improve collaboration Improve coordination Improve assignment Differentiate treatment and assessment of understanding of Improve assignment Improve and data risk management Reduce procurement merchandise ordering for inventories use of flexible and Divest low-utilization Improve terms on Increase use of just- Improve management communication of Improve physical delivered to partners Improve versatility of Develop and leverage assignment of sales partnership and OEM functionality and value relationships and product and service business unit supply- and capacity- products and services service launch sales territories transactions to lower- better customer and management service providers better HR information higher-value vendor performance reporting with partners and cycle times with business schedules with of transactions to of customers/ expandable equipment merchandise in-time procurement of credit/loan portfolio risk (strategic, operational, internal value and program/project of accountability and security of people management of leads arrangements interactions across all performance and driven promotions processes cost sales channels order information (security, energy, etc.) and tools partnerships processes processes customers partners appropriate staff segments (LIFO, FIFO, uniform market value of authority partner relationships (vendors, channel partners, managers and staff strong brand (razors v. blades / product v. investment, financial, com- channels offerings market values shipping charges, etc.) processes (fixed and variable assets) distribution schedules capitalization, shrinkage, infrastructure pliance, data/privacy, etc.) business units progress etc.) obsolescence, etc.) Increase utilization of Improve identification, Improve value Improve Improve product and Improve sales Improve forecasting, Improve terms on Optimize depreciation Improve assessment Improve quality and Improve sharing of Improve sharing of Improve product, Develop strong Improve management Tailor cross-sell/up- Offer value-adding Divest non-performing Improve product and Improve execution of Improve routing of IT, telecom and Improve capacity/ Improve budgeting License or acquire Provide staff with Improve use of Route low-value Improve risk planning, assessment and Improve assignment delivered to other Improve brand responsiveness to sell offers to customer product and service and non-strategic service lifecycle market- and supply- service withdrawal forecasting and service requests to planning and purchased and leased demand planning Improve collaboration Improve/standardize and forecasting products and Improve terms on Shorten production better information and national/global transactions to lower- methods/lives for Improve terms Utilize more efficient Consolidate Improve terms on and benchmarking of mitigation and control execution of of resources to consistency of knowledge across knowledge across service and process customer strength and good will of product lifecycles customer requests and retirement campaign execution prioritization skills and network resources real estate, furniture with vendors M&A processes materials purchases cycles property, plant and on infrastructure IT systems inventory materials credit/receivables performance organizational organizational stakeholders innovation skills of relationships and (launch through retirement) and inquiries needs bundles business units management driven promotions processes processes and tools appropriate staff tools (servers, routers, network and fixtures processes and tools capabilities intellectual property tools purchasing power cost sales channels equipment performance approaches M&A/divestiture projects assessment methods boundaries boundaries (public, alumni, analysts, staff capacity, etc.) opportunities etc.) communities Increase use of lower- Implement/improve Improve monitoring Improve performance Tailor products and Evolve product and Implement pricing and Proactively manage Improve ability to Improve campaign Improve demand Increase use of Improve routing of Ensure full utilization Increase use of Increase use of and management of Improve conversion of Develop and leverage Improve quality cost service and Consolidate device Improve terms on company-wide Improve terms on Improve compliance Improve skills of Improve terms with Improve utilization of Utilize more Improve company- Improve ability to Improve involvement and reliability of IT Improve integration of services to new service features, affinity programs transition points utilize offshore cash/ Shorten time-to- Improve price/margin design and Improve terms with Improve due-date management processes and tools equipment and Improve financial forecasting vendor-managed/ service requests to of tax carryforwards Divest low-utilization vendor-managed/ vendor-managed/ risk and compliance strong relationships intellectual capital assurance programs based on volume and assets and move market knowledge of staff management sales channels information channels reliability improvements management reporting efficiency product development service providers production channels / processes, skills and vendor-warehoused appropriate service infrastructure flexible/expandable IT vendor-warehoused vendor-warehoused wide monitoring and develop and spin-off of operational staff in systems/platforms IT systems across into sources of com- (life events, ends of (credits, net operating (strategic, operational and (copyrights, patents, BUSINESS PROCESS GROUPINGS customer segments functionality and value breadth contracts and leases, etc.) between geographies processes and tools (contact centers, automated voice response, web, etc.) information and tools (HVAC, cabling, etc.) for assessing staff performance supplies processes staff (delivery, warehousing, etc.) Reduce downtime tools inventory channels losses, capital losses, etc.) systems inventory inventory management of risks new businesses project delivery financial risks; regulatory and tax compliance) (applications, equipment, networks, etc.) partner networks petitive advantage trademarks, etc.) Business Strategy and Management Utilize tax opportuni- Improve breadth, Consider tax implica- Improve quality of Develop and utilize Shorten order-to- Improve account Improve features and Improve coordination Improve real estate Improve terms with depth and quality of Improve incentives Improve breadth, Improve focus of Increase account- Improve breadth, Improve information provided delivery cycle time / ties around risk man- Improve channel Improve skills of order Consolidate and/or Provide staff with Improve incentives Improve skills of tions in the location/ Improve identification unique production (Business and Financial Strategy, Mergers and Acquisitions, Tax Remove barriers to management skills of Improve brand Implement affinity functionality of with suppliers and management Improve skills of Improve skills of management and re-architect data performance Improve skills of HR service providers better managerial financial information around product Improve collaboration around production inventory and Improve skills of Improve skills of Improve maintenance depth, quality and company resources ability of business depth, quality and partnership and to stakeholders Improve product and switching strength and good will programs agement activities sales staff service staff management staff development with vendors merchandising staff service staff selection of facilities of IT systems timeliness of manag- on high-priority and management of unit leaders for tax timeliness of business collaboration skills of resources Management, Risk Management, Compliance Management, Program staff (hedging transactions, products and services sales channels processes and tools billing staff stores (equipment maintenance, information and tools (asset, budget, price/cost, efficiency distribution staff (distribution centers, service program/project risks (accuracy, timeliness, (methods, equipment, Management and Performance Management) service availability commodities trading, etc.) methods and tools delivery, warehousing, etc.) treasury, debtor/creditor, efficiency centers, branches, etc.) erial information initiatives impact of decisions information staff transparency & facilities, etc.) performance, tax, risk, etc.) predictability) Build tax opportunities Ensure tax planning Customer Strategy, Relationships and Interactions Improve sales and Apply brand to new Improve incentives for Offer value-adding Defer and reduce Improve quality and Build product Improve staff Improve incentives Improve incentives Improve Consider tax Increase use of Improve skills of Improve cost Improve definition of Increase use of Improve incentives Improve incentives Improve staff into real estate activities and tax Improve anticipation Dynamically cancel or Improve benchmark- Improve access to Improve mechanisms Improve brand federal, state and Improve terms with around service around order establishment of and incentives in location Utilize national/global accounting and vendor-managed/ Improve skills of Increase utilization of and understanding of redirect ineffective/ ing of global effective for soliciting and Develop and utilize (Marketing, Sales, Delivery/Provisioning, Billing and Service) marketing skills of and unbranded account/relationship product and service reliability of products margins/profitability incentives around distance/on-line business product and service around inventory/ around merchandising incentives around transactions filings comply with and distribution of unique IT resources strength and good will local quarterly esti- advertising channels efficiency and management adherence to service- and selection of purchasing power allocation of shared/ vendor-warehoused production staff (income deferral, location IT systems current and potential obsolete programs tax rate against addressing staff products development bundles mated tax payments and services into sales incentives sales efficiency effectiveness efficiency level targets facilities learning management staff overhead costs specifications inventory distribution efficiency efficiency service efficiency credits and incentives, regulatory environ- regulations/legislation and projects industry peer group business information stakeholder feedback (applications, networks, etc.) Product Strategy, Development and Production leasing terms, etc.) ment (Innovation and Design, Supply Chain Management, Production Improve product Shorten order-to- Improve methods and Improve terms with Improve terms with Improve terms with Improve technical and Reduce salary and Increase use of Improve ability to Improve terms with Improve terms with Improve consideration Clarify governance Improve breadth, Improve asset Operations and Logistics) Improve alignment of Improve product- and Improve account Improve methods and Ensure proper Improve incentives development Improve contracting Improve terms Improve terms with roles and responsi- Improve effectiveness Improve management Improve security of delivery cycle time / Establish customer tools for managing Improve skills of service providers service providers service providers project management benefits costs / vendor-managed/ utilize offshore cash/ service providers service providers of tax implications in Divest low-utilization depth, quality and development skills of staff incentives with service-innovation management Improve product and communities demand/supply tools for managing marketing staff skills of staff valuation of property Improve value of vendor-warehoused around business performance and negotiation skills on equipment service providers (outsourced services, bilities (delegation of of legislative/lobbying of vendors/service applications, systems Human Capital Strategy and Management strategic objectives skills of staff methods and tools pricing performance (network services, airlines, (network services, (delivery services, for tax purposes planning efficiency assets and move management of purchasing staff purchases (transport, warehousing, (delivery, warehousing, etc.) network services, the acquisition and IT systems efforts providers timeliness of perform- and data management and authority, segregation of service availability performance information services, etc.) outsourced functions, etc.) outsourced functions, etc.) employee benefits inventory between geographies etc.) information services, etc.) disposition of assets ance information staff (Recruitment, Development, Administration and methods and tools duties, etc.) Performance Management) Improve profitability of Acquire companies Improve terms with Improve terms with Improve logistics Optimize tax benefits Improve incorporation Continuously track Improve access to Improve incentives for Improve cross- Improve customer Improve staff Improve terms on Improve terms on Improve terms on Improve incentives third-party product Improve contracting Improve skills of R&D efforts through Improve incentives Improve terms with Improve terms on Improve terms on associated with self- Strengthen training/ Improve Improve incentives IT Strategy and Management with relationships in product development selling/up-selling service and retention incentives around around IT/network and negotiation skills service providers financial management utilization of tax and around procurement performance merchandise Improve terms on education of board of risk analysis in and manage the and distribution of process innovation around asset targeted customer leased sales assets leased service assets leased assets and service providers (information services, service providers management leased service assets constructed assets production equipment business planning realization of project performance (Design, Development, Deployment, Operations and and innovation skills of staff skills of staff marketing efficiency (computers, vehicles, etc.) (computers, vehicles, etc.) (computers, vehicles, etc.) efficiency (payroll, benefits, training, of procurement staff staff economic develop- efficiency (outsourced functions, etc.) purchases (computers, vehicles, etc.) (plant, facilities, internally- and audit committees skills of staff development Performance Management) segments consultants, etc.) methods and tools (internal and external risk) benefits information etc) ment incentives used software, etc.) Other Shared / Corporate Services Improve terms with Improve management Acquire companies Build customer Improve service and Improve terms with of international staff Improve incentives Improve materials Improve management Optimize expense vs. Align compensation Integrate tax oppor- Improve management (Real Estate, Procurement and Other) Acquire companies in Improve staff service providers Improve management Improve tax collection Improve incentives Improve depth aligned with product incentives for cross- satisfaction and support performance and remittance service providers costs around procurement around financial performance Improve management of trade and indirect Improve management capitalization of costs Improve terms on IT and incentive systems tunities and issues of organizational Improve career and breadth of staff Develop and utilize targeted geographies retention into staff (researchers, information of trade/indirect taxes management management management of transfer pricing of transfer pricing systems with strategies, values into business planning change in support of options and paths unique tax expertise strategies selling/up-selling services, advertising (sales/use, VAT, GST, etc.) processes (contractors, network (immigration, payroll, staff efficiency taxes (sales/use , VAT, (M&A costs, R&D costs, technical skills All Process Groupings incentives channels, etc.) methods and tools services, consultants, etc.) support, international equity, efficiency methods and tools GST, etc.) etc.) and ethics processes initiatives etc.) (Action may apply to all processes) Improve marketing Improve terms on Manage payroll tax Improve Improve tax benefits Improve methods and Improve methods and Improve sales Improve retention and advertising Improve sales Improve tracking and Improve production Improve service of compensation and Align management tools for managing tools for managing performance performance performance purchased and leased impacts of business Optimize utilization of Improve terms with performance merchandising performance Improve leadership Improve program/ and staff incentives Improve recruiting Note: Many actions could logically be associated with performance recovery of indirect available sales/use financial services performance benefit programs and management project management other or multiple process groupings. For example, sales and marketing innovation management management management taxes (sales/use, VAT, assets (PCs, servers, initiatives management management with company effectiveness management network equipment, leased (M&A, consolidation, tax exemptions providers management (deferred and equity-based skills of executives skills of staff many customer and product actions are likely to have performance performance methods and tools methods and tools methods and tools methods and tools GST, etc.) lines, etc.) restructuring, relocation etc.) methods and tools methods and tools methods and tools comp; retirement and performance heavy IT and HR components. healthcare benefits, etc.) Improve profitability of Improve/consolidate R&D efforts through Improve order IT performance Utilize available Improve management Improve identification Improve executive Improve monetary Improve mechanisms federal, state and development, Improve vendor and non-monetary for collecting and utilization of tax and management management of indirect taxes and application of management skills of economic develop- methods and tools methods and tools local employment/ (sales/use, VAT, customs R&D tax incentives recruiting and recognition of staff implementing training incentives duties, etc.) succession planning staff contributions employee ideas (utilization, performance, ment incentives capacity planning, etc.) Ensure adequate Improve HR Improve procurement documentation of Build innovation and Improve utilization of performance performance Improve talent improvement into telecom tax incentives significant tax management models management management positions rewards and (credits, exemptions, etc.) methods and tools methods and tools and programs (earnings & profits, transfer incentives pricing, tax opinions, etc.) © 2004. 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Enterprise value map_2_0

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Enterprise value map_2_0 — Presentation Transcript

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