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Profitiviti - Executive Overview
 

Profitiviti - Executive Overview

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The turbulent economy of the past 18-months has impacted the profitability, productivity and potentially future growth of many companies. At Profitiviti, we can help. We have a powerful, proven ...

The turbulent economy of the past 18-months has impacted the profitability, productivity and potentially future growth of many companies. At Profitiviti, we can help. We have a powerful, proven analytics framework to help optimize business faster, cheaper and more accurately than ever before. Take a look and let us know if you are interested in more discussion. All the best.
Steve
info@profitiviti.com

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    Profitiviti - Executive Overview Profitiviti - Executive Overview Presentation Transcript

    • Business Operations Intelligence® Improving Profitability & Performance©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 1
    • KEY BUSINESS QUESTIONSContinuous Improvement Drives Year-Over-Year Business ResultsAnnually,Annually Quarterly and Monthly, These Questions are Discussed by Senior MonthlyExecutives & Board Members All Around the World, Regardless of Industry or Size ofCompany– How Can We Grow Revenues?– How Can We Improve Gross Margins?– How Can We Improve EBITDA?– Which Cost Savings Initiatives Have the Highest ROI?– Do We Have the Right Resource Talent in the Right Areas with Succession Plans?– How Can We Minimize Business Risks? Critical Business Decisions Involve Making Trade-Offs – Understand Your Options©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 2
    • GROUPS OF MONEYTraditional Business Analysis Methods Provide Limited Viewpoints Financial Fi i l Statements Departmental Products / Services Resources Capital Budget Budgets (Sales / COGS / Etc.) (Labor & Benefits) (CAPEX) (OPEX)Execution Happens Through People, Projects and Processes h h l d– Strategic Projects– Cost Savings Projects– Operational Projects– Operational Processes– Process Improvements Integrate Key Business Data to Model How Your Business Truly Operates©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 3
    • VISUALIZE YOUR BUSINESSUtilize Existing Data, In A Different WayStrategic Business Modeling Visually Defines Operational Cost Structures Pinpoints Structures,Improvement Opportunities & Enhances Executive Decision-Making– What Are Your True Cross-Functional Business Costs? – Customer Acquisition – Customer Retention – New Market Expansion – New Product Development – Sales & Operations Planning – Etc.– What Are Your Operational Business Risks? – Impacts of Low Performers – Cost of Low Performers – Costs Which Are Impacting Margins – Etc. E©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 4
    • OUR APPROACHMake Your Business Operations a Competitive AdvantageProfitiviti’s Business Optimizer™ Solution is Based on Industry LeadingProfitiviti sMethodologies & Capitalizes on Decades of Business Improvement Experience– Utilize Easy to Gather Business Data– Ali Th t Data Using a Proven Framework Align That D t U i P F k– Analyze Your Business Using Over 40 Pre-Defined Reports or Build Your Own Reports Using Easy, Drag-and-Drop Features– Slice Your Business by a Variety of Dimensions: Location, Department, GL Account, Etc.– Define Business Operations Improvements Initiatives– No Need for Expensive Software Licenses, Long Lead Times to Implement or Complex IT Integration Quickly & Accurately Quantify Your Business Opportunities, Then Take Action©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 5
    • YOUR RESULTSOur Clients Average > 500% ROI in Less Than 6 MonthsEnhance Your Decision Making Process, Improve Your Gross Margins, Improve Decision-Making Process MarginsEBITDA, Reduce Business Risks and Track the ROI of Improvement Initiatives Back toYour Financial StatementsGain Immediate Insights Into:– The strategic drivers of your business;– The processes and functions that have the greatest impact on revenue;– The products/services that deliver the most profit;– Sources of high cost and what can be reduced or eliminated;– The highest performing resources and their areas of operational focus;– The lowest performing resources, what they cost and what they are impacting resources impacting. Don’t Re-Invent the Wheel When a Low Cost, High-Value, Proven Solution Exists©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 6
    • OPTIONSSimplify Business Complexity Through Visual AnalysisOne Time Strategic Business Assessment (Typically < 4 Weeks)– Quickly & Accurately Identify Cost Savings Initiatives– Quantify Business Risks Typically Unknown by Senior ManagementMonthly or Annual Subscription of Our Software Solution for Ongoing Analysis &ROI Tracking – Put Our Tools in Your Hands– Create a Baseline for Monthly, Quarterly or Annual Trending– Easily Link Improvement Project ROI Back to EBITDA– Continually Conduct Robust Analysis on People, Process, Technology, Projects and SpendingScenarios Where We Thrive– Operational Assessments / Business Health Checks – Lean Six Sigma Operational Excellence Programs– 90-Day Plan Input for New Executives – Activity Based Costing (ABC) Initiatives– Detailed Annual Budget Accountability (OPEX & CAPEX) D il d A lB d A bili – Pre-Money Business Acquisition Analysis P M B i A i ii A l i– Organizational Restructuring Projects – M&A Business Integration Tracking & Measurement©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 7
    • CONTACT INFORMATIONProfitiviti 5000 Birch Street West Tower Suite 3000 Tower, Newport Beach, CA USA 92660 949-260-2029 www.profitiviti.com pSteve Raack 310-259-1248 310 259 1248 mobile sraack@profitiviti.com Profitiviti Provides a Trusted & Accurate External Perspective©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 8
    • Appendix©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 9
    • OUR FRAMEWORKIt Matters Where You Invest & Where You Focus Your Efforts OVERVIEW – We wanted our analysis framework to be more strategic, because not all investments or processes are equal – During the recent economic crisis, data shows that the overall investment in Growth decreased dramatically. Why? Because investment in Growth can be risky and returns can take time to materialize. – Example Growth Areas – Advertising – Research & Development – Opening New Markets – Example Core Areas – Manufacturing – Distribution – Customer Service – Example Enabler Areas (Typical Outsourcing ) Candidates) – Accounts Payable – IT Systems Support©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 10
    • EXAMPLE REPORTIdentify, Quantify & Eliminate Wasteful Spending OVERVIEW – Each Bubble is a Business Process or Project within the organization or division – The size of the Bubble is relative to total cost – Large Bubbles represent cost reduction or re-allocation d i ll i opportunities – Using simple report filters, rapid analysis can be conducted by Location, by Business Process, by Project, by General Ledger Account and/or b D A t d/ by Department t t HIGH-LEVEL ANALYSIS – In this example report: – Manage New Product Development g p $2.3 Million USD – Manage Consumer Testing $6.7 Million USD – Manage Change Control $4.2 Million USD©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 11
    • EXAMPLE REPORTUnderstand the True Costs of Projects & Processes OVERVIEW – Aligning key business data produces a breakdown that shows all of the costs, by Department, by City – Resource Costs – OPEX C Costs – CAPEX Costs (none in this example) – Companies typically have over 10 critical projects and hundreds of operational processes; this report links all costs back to a company’s Financial Statements l HIGH-LEVEL ANALYSIS – In this example report: – Web Replatform Project $4.4 Milli $4 4 Million USD – CAPEX = $3,000,000 – Professional Fees = $600,000 – Internal Resources = $531,693 – Travel = $296,500 – Legal Fees = $20 000 $20,000 – Manage Product Returns $278,856 USD©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 12
    • EXAMPLE REPORTDefine Process Costs Cross Departments & Locations OVERVIEW – Each bar represents the total spending for each category of Business Processes – The colors indicate what type of spending is enabling those Business Processes HIGH-LEVEL ANALYSIS – In this example report: – Manage Information Technology and Manage Corporate Legal are the two most expensive f h i functions i – Manage Corporate Legal raises a concern; GL Amount costs are made up of Legal Fees and Resource Labor & Benefits to support multiple global lawsuits. – Capital expenditures are mostly allocated to improve Supply Chain Business Processes – Thi correlates t th This l t to the company’s strategic goals for stronger global systems©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 13
    • EXAMPLE REPORTImprove Execution: Right People, Right Skills, Right Roles OVERVIEW – In addition to analyzing overall Business Process and Project costs, this view highlights what kind of resources are working in which areas of your company – This report can utilize any two Resource attributes you want to analyze (e.g., performance review ratings, talent management ratings, years to retirement, required certifications) HIGH-LEVEL ANALYSIS – In this example report: – Only 11% of the resources are working on Growth related Business Processes and Projects – In total, 95 resources or 17% are rated as low-performers (“Does Not Meet”) and cost the company around $14 Million USD in Labor & Benefits annually – 13 low-performers are working on Growth related Business Processes©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 14
    • EXAMPLE REPORTMake Improvements to Increase Profitability OVERVIEW – Reviewing costs is one side of the business, the other side is understanding sales and profitability – This report represents sales as bars and Contribution Margins as a line – Insight provided here leads to cost savings initiatives, SKU Rationalization exercises, re-pricing, re-positioning and improved marketing promotions HIGH-LEVEL ANALYSIS – In this example report: – The top selling product line has one of the lowest Contribution Margins – To improve profitability, focus on improving the overall margins of three product lines – Create product promotions by coupling discounted products with high hi h margins with full priced i i h f ll i d products with low margins (as appropriate)©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 15
    • EXAMPLE REPORT“What-If” Scenarios Assess Business Impacts Before They Happen OVERVIEW – Decision-making requires trade-offs, so a what-if analysis tool is very valuable – This functionality helps tremendously during restructuring projects and/or Mergers & Acquisition initiatives HIGH-LEVEL ANALYSIS – In this example report: – Cost Reductions: shows where the costs will come from and which areas will be impacted – Cost Increases: shows where additional spending is desired for improvement – Net Impact: shows the quantitative* Additional reporting is used to analyze the details behind these scenario impacts, such as which resources, locations, departments, etc. impact related to the define scenario – Cost Re-allocated: shows how much cost needs to be moved from one area to another – Scenarios help quantify the impacts and guide the change management©2009-11 Profitiviti. All Rights Reserved. This document is for informational purposes only. 16