Business Math

1. Osama Ashfaq
Alcatel-Lucent

2. Introduction
Did Engineering from NUST is 2003
Worked for NESCOM
Worked at LUMS
Did MBA from LUMS
Worked with Unilever
Student Consultancy with Cisco
Headed Alcatel-Lucent Enterprise Unit – Pak / Afg
Currently Heading ALU Mobilink Account

3. What is Business Mathematics?
Business mathematics is mathematics
used by commercial enterprises to
record and manage business operations.
Mathematics typically used in
commerce includes, elementary
arithmetic such as fractions, decimals
and percentages, elementary algebra,
statistics and probability.
Some cases more advanced mathematics
such as calculus, matrix algebra and
linear programming are also used.

4. COMMAND CONTROL
How is it used?
It is about giving a direction
and leading your enterprise to
success.
It is about the future
It is about controlling your
enterprise and keeping it in
limits to make it a success.
It is about the Present.

5. BUSINESS DOMAINS
Finance
Accounting
Marketing
Sales
Procurement
Strategy
Planning
Operations
Production
Logistics and Supply Chain

6. Finance (Management of Money)
Debt and Financing Mgmt(Debt
(Long / Short), Bonds, Term
Papers, Shares, Equity)
Investment Mgmt (Financial
Investments, Asset Investment,
Strategic Investments)
Leasing / Insurance Mgmt
Financial Business Planning (NPV,
IRR, WACC, Financial Ratios)

7. Accounting (Keeping Track)
External Reporting (Balance Sheets,
Income Statements, Cash Flows)
Internal Reporting (Monthly, Qtrly
Reports)
Book Keeping / Transaction
Recording
Asset Valuation / Depreciation /
Amortization
Management of Taxes and
Governmental Liabilities

8. Marketing (Developing and Promoting
Products)
Consumer / Business Behaviors,
Segmentation and Profiling
Channel Design, Channel Mix
and Channel Value Proposition
Price Elasticity, Demand & Sales
Forecasting
Concept Testing & Test
Marketing for Product and SKU
launches
Brand & Advertisement Research

9. Sales (Art of Selling)
Evaluating Sales ROI
Statistical Analysis of Territory /
Verticals to evaluate focus areas.
Evaluating Channels of Delivery
(Retail, Direct, VAD, Telesales,
Online)
Sales Promotions / Evaluation of
Sales Promotions
Sales Team Planning / Incentive
Plans
Customer Churn Control

10. Procurement (Best, Cheapest, Fastest)
Benchmarking, Cost Targets, TCO
Vendor Scorecards / Selection
Processes
Procurement Process / Tendering
Process
Cost – Benefit Analysis, Cost – Utility
Analysis
Evaluation of Consolidated Buying vs
Decentralized Buying vs Outsourcing
Fraud Detection

11. Supply Chain / Logistics (Moving Stuff)
Logistical Trade offs in the Supply
Chain (Optimized Paths) – Network
Diagrams
Demand Planning and Forecasting
(Through out the Chain)
Inventory Planning (Raw, WIP,
Finished Goods)
Cash Flow Planning
Strategic Decision: Make / Buy, Where
to make, Competitor Benchmarking,
Size and Paths of the Supply Cycle

12. Planning and Decision Making (Art of
Action)
Budgeting
Forecasting (Covariance, Correlation, Regression)
Decision Analysis (Decision Trees, Stochastic
Ordering / Dominance)
Linear Programming / Optimization / Multi Criteria
Evaluation / Design
Risk Analysis (Composite Risk Index)

13. Operations / Production Management
(Engine of the Business
Lean Manufacturing / Processes
(Muda (Waste), Mura
(Unevenness) & Muri
(Overburden)
Total Quality Management /
Kaizen
Six Sigma (99.99966% defect
Free), Statistical Process Control
Project Management
Services Management

14. Economics (Using Scarce Resources)
Demand / Production
Optimization
Price elasticity estimations, and
choosing the optimum pricing
method.
Capital Investment decisions

15. OSAMA ASHFAQ
ALCATEL-LUCENT