The document discusses Peak Performance Trusts, which are trusts set up to help business owners transition ownership to employees. It provides two examples of businesses that set up Peak Performance Trusts. The trusts allow employees to indirectly own shares in the business and benefit from increased value and profits. This provides employees incentive to improve business performance while offering business owners an exit option through potential future sale.
The document discusses conducting a total cost of operations (TCO) analysis when making procurement decisions. It provides an overview of strategic sourcing and the Federal Strategic Sourcing Initiative (FSSI). It defines TCO and explains that TCO looks at all costs associated with an asset over its lifecycle, not just the purchase price. The document outlines key cost elements to consider in a TCO analysis, such as acquisition costs, lifecycle costs including maintenance and operations, and end of life costs. It emphasizes the importance of analyzing both cost elements and cost drivers to fully understand TCO. Examples are provided to illustrate TCO analyses for different commodity types like printers and cars.
The document outlines various options for an asset manager named ABC to pursue "growth from the core" through expanding their investor base. It discusses leveraging segmentation and database profiles to focus efforts. Key strategies mentioned include prioritizing target clients, defining value propositions, identifying client needs, and customizing presentation stages. Metrics like sales volume, AUM, conversions, and retentions are identified to measure performance of integrated sales models across distribution channels and products.
1) Businesses are focusing on growth, innovation, customers, and managing complexity and change in global markets.
2) Integrated service management, automation, and integrated lifecycles are required to exploit opportunities from change.
3) The presentation provides guidance on transforming information into digital assets, integrating business and IT service management, optimizing resources and performance, and investing in automation and best practices to manage complexity and change.
The document discusses different approaches to outsourcing deals, including traditional outsourcing contracts and joint ventures. It provides an example of a joint venture sourcing structure where responsibilities and contributions are shared 50/50 between the client and vendor. The client typically provides people, assets, commitment as a customer, capital and subject matter experts. The vendor typically provides capital to fund start-up, tools and methods to manage change, experience leading change, transferring resources to the joint venture, and commitment to success.
Best Practices in Trading Partner CollaborationSAP Ariba
The document discusses improving collaboration between trading partners through better business processes. It outlines that 80% of transactions are currently completed manually, costing $650 billion annually. The document proposes using collaborative business commerce solutions to address these challenges by automating processes across the entire value chain from marketing to payment. Implementing such solutions could provide benefits like faster payment, reduced order processing costs, increased revenues, and compliance. It introduces representatives from Merck Millipore and Computacenter to discuss their experiences with eProcurement.
Lloyd bancaire + deal+structuring+financing+acquisitionsD S.
This document discusses key considerations for structuring and financing acquisitions. It covers regulatory, tax, and accounting considerations. Commonly used deal structures include stock purchases, asset purchases, and mergers. Financing can come from banks, finance companies, long-term finance, venture capital, and leveraged buyout funds. Forms of financing include debt, preferred stock, common stock, and other instruments. A case study demonstrates using offshore debt financing through a special purpose vehicle to acquire a US basmati rice company.
The document discusses Peak Performance Trusts, which are trusts set up to help business owners transition ownership to employees. It provides two examples of businesses that set up Peak Performance Trusts. The trusts allow employees to indirectly own shares in the business and benefit from increased value and profits. This provides employees incentive to improve business performance while offering business owners an exit option through potential future sale.
The document discusses conducting a total cost of operations (TCO) analysis when making procurement decisions. It provides an overview of strategic sourcing and the Federal Strategic Sourcing Initiative (FSSI). It defines TCO and explains that TCO looks at all costs associated with an asset over its lifecycle, not just the purchase price. The document outlines key cost elements to consider in a TCO analysis, such as acquisition costs, lifecycle costs including maintenance and operations, and end of life costs. It emphasizes the importance of analyzing both cost elements and cost drivers to fully understand TCO. Examples are provided to illustrate TCO analyses for different commodity types like printers and cars.
The document outlines various options for an asset manager named ABC to pursue "growth from the core" through expanding their investor base. It discusses leveraging segmentation and database profiles to focus efforts. Key strategies mentioned include prioritizing target clients, defining value propositions, identifying client needs, and customizing presentation stages. Metrics like sales volume, AUM, conversions, and retentions are identified to measure performance of integrated sales models across distribution channels and products.
1) Businesses are focusing on growth, innovation, customers, and managing complexity and change in global markets.
2) Integrated service management, automation, and integrated lifecycles are required to exploit opportunities from change.
3) The presentation provides guidance on transforming information into digital assets, integrating business and IT service management, optimizing resources and performance, and investing in automation and best practices to manage complexity and change.
The document discusses different approaches to outsourcing deals, including traditional outsourcing contracts and joint ventures. It provides an example of a joint venture sourcing structure where responsibilities and contributions are shared 50/50 between the client and vendor. The client typically provides people, assets, commitment as a customer, capital and subject matter experts. The vendor typically provides capital to fund start-up, tools and methods to manage change, experience leading change, transferring resources to the joint venture, and commitment to success.
Best Practices in Trading Partner CollaborationSAP Ariba
The document discusses improving collaboration between trading partners through better business processes. It outlines that 80% of transactions are currently completed manually, costing $650 billion annually. The document proposes using collaborative business commerce solutions to address these challenges by automating processes across the entire value chain from marketing to payment. Implementing such solutions could provide benefits like faster payment, reduced order processing costs, increased revenues, and compliance. It introduces representatives from Merck Millipore and Computacenter to discuss their experiences with eProcurement.
Lloyd bancaire + deal+structuring+financing+acquisitionsD S.
This document discusses key considerations for structuring and financing acquisitions. It covers regulatory, tax, and accounting considerations. Commonly used deal structures include stock purchases, asset purchases, and mergers. Financing can come from banks, finance companies, long-term finance, venture capital, and leveraged buyout funds. Forms of financing include debt, preferred stock, common stock, and other instruments. A case study demonstrates using offshore debt financing through a special purpose vehicle to acquire a US basmati rice company.
The document discusses business valuation methods like the market approach, comparable transactions approach, and sum-of-parts method. It then discusses the synergy trap that acquirers can fall into when pursuing acquisitions based primarily on projected synergies. Acquirers often overpay for acquisitions due to unrealistic synergy projections, setting high performance targets that acquired companies struggle to meet. Studies find that most acquisition programs fail financially due to paying too high a premium without considering integration challenges. The document emphasizes that acquirers must quantify required synergies upfront to justify paying acquisition premiums.
The document summarizes IBM's business partner enablement programs for 2013 in the Nordic region. It outlines various training and skills development opportunities for partners, including the Know Your IBM program, Blue Xperts technical community, Business Partner Sales School, and technical workshops. It also discusses metrics to measure partner certifications and ways for partners to promote themselves through IBM's partner branding.
1) Custom Computer Specialists has over 30 years of experience helping public and private sector clients maximize the value of their IT investments through a range of consulting, implementation, and support services.
2) They determine requirements, assess costs and benefits, and develop appropriate timelines to design client-centric solutions that meet goals and deliver expected results.
3) As a privately-held company, Custom Computer Specialists offers flexibility and extensive IT capabilities to collaboratively design, implement, and support solutions that drive clients' success.
The document summarizes IBM's business partner enablement initiatives in the Nordic region for 2013. It outlines training programs like the Business Partner Sales School and Blue Xperts technical community to help partners improve skills. It also discusses incentives programs like Know Your IBM that reward partners for completing training and making sales. The landscape shows the various offerings available to partners at different participation levels.
The document outlines United Airlines' investor day presentation from February 2008. It discusses United's strategic plan to strengthen its core airline business and create shareholder value over five years. United aims to be the global airline of choice for customers, employees, and investors. The presentation highlights United's network, capacity discipline, revenue management practices, and sales strategies. It provides financial results showing United has led the industry in capacity discipline and PRASM growth.
The document discusses using high tunnels for crop production and the importance of profitability. It addresses pricing crops from high tunnels to capture price premiums for early season produce. The speaker emphasizes understanding customer perceptions of value and managing their experience to influence the gap between price paid and value received. Charts are presented on pricing decisions from the company and customer perspective, and how revenue can vary between determinate and indeterminate tomato crops depending on price changes through the season.
The document summarizes a consulting case study where ISON Consulting helped a new entrant in the passive infrastructure market define their sales strategy in India and explore entry into other markets. ISON analyzed the client's innovative tower and shelter design, conducted a market size analysis in India, defined an optimal pricing model, and recommended the client focus on manufacturing and installing towers under 21 meters in India while targeting more profitable developing international markets like Nepal, Cambodia, Nigeria, Tanzania, and Uzbekistan.
The document discusses using high tunnels for crop production and marketing to maximize profits. It addresses the importance of pricing crops to capture premiums early in the season. The author emphasizes understanding customer perceptions and the total experience to influence the gap between perceived value and price paid. Charts are presented showing the effects of price changes over the season on revenue. The overall focus is on financial analysis and pricing strategies to improve profitability when using high tunnels.
Actegy Consulting is a sales growth consulting firm founded in 1996 that helps sales leadership drive results. They provide workshops, roundtables, and advisory services to both large and small clients. Their client list includes companies such as Intel, Comcast, and ADP. They help clients address issues such as pressure from competitors, budget constraints, and slow decision making. Their services include implementing programs to assess and address at-risk accounts and follow formal decision-making processes.
This document announces a SaaS benchmarking study by The Alexander Group to provide sales leaders at SaaS companies with actionable insights into sales strategies and metrics. The study will collect data in three areas: 1) sales coverage and strategy, 2) revenue and costs, and 3) sales compensation. It will compare different sales models, revenue sources, costs, and compensation practices to help companies evaluate and improve their sales performance. Participation involves executive interviews, submitting standardized data, and receiving a confidential report comparing metrics to industry peers.
The document discusses various aspects of business models including value propositions, profit models, customer relationships, and key activities. It provides examples of different business model types such as subscription, loyalty programs, and low-cost carriers. Framework tools for designing business models are also introduced, including the value proposition designer and business model canvas for mapping the key elements of a business.
Dynamic Discounting: New Opportunities for No-risk, High-yield Cash ReturnsSAP Ariba
This document discusses dynamic discounting and working capital management strategies that can provide companies with no-risk, high-yield cash returns. It describes how Ariba offers collaborative commerce solutions that help companies buy, sell, and manage cash better through improved spend control, sales acceleration, and working capital management. Case studies are presented on how Republic Services and Dollar Tree have leveraged Ariba's dynamic discounting solutions to capture early payment discounts, drive new discount adoption, and increase cash flows.
The document provides an overview of a value reference model for supply chain services. It outlines the key areas of branding, marketing, purchasing, warehousing, producing, sales, and disposal/recycling. For each area, it maps the relevant services and processes such as procurement, inventory control, production planning, order fulfillment etc. The model aims to map the end-to-end value chain and interdependencies across supply chain functions.
Virgin Media's Shared Services department implemented an operational excellence program over 16 weeks to improve processes and reduce waste. Key activities included scoping current performance, engaging staff, providing Lean training, implementing 5S practices, mapping over 147 processes to identify waste, and establishing visual management systems. These changes reduced processing times, eliminated over 190 non-value added steps, and reduced the workforce by 14% while improving quality. The program established a foundation for continuous improvement through sustaining audits and a Lean coaching role.
1) Inventory optimization aims to maximize availability while minimizing costs through better demand forecasting and planning.
2) Accurate demand forecasting is key, and requires selecting the best forecasting models and optimizing parameters for each item.
3) State-of-the-art approaches use automatic, adaptive techniques to update models and parameters over time as new demand data becomes available.
Amr Research 0906 The Fast-Payback SAP Projects for Saving Money in 2009Faycal Chraibi
This document summarizes the key findings of a survey conducted for SAP clients on fast-payback projects that can reduce business expenses using existing SAP investments. The survey found that purchasing, supply chain, inventory management, and order fulfillment projects had the highest potential for cost savings. Sample projects showed order fulfillment and purchasing projects achieved the fastest payback times. Most companies measure benefits after project completion but are evenly split between other measurement approaches.
The document summarizes the Innovative Partnerships Program (IPP) at NASA. IPP provides funding and partnerships to advance technologies through programs like SBIR/STTR, seed funding, and partnerships with industry/academia. The document outlines various IPP elements and initiatives, and provides examples of technologies funded by SBIR that were infused into NASA missions like Mars rovers, Hubble Space Telescope, and Deep Impact. It also summarizes the IPP Seed Fund, which leveraged $6.6M in funding into $28.3M in public-private partnerships across all NASA directorates.
The document provides an overview of SAP Workflow concepts including basic terminology, the position of workflow in the SAP R/3 system, how workflow automates business processes, benefits of workflow, examples of workflow objects, events, methods and tasks. It describes the structure of a workflow definition including conditional processes, parallel processes, and loops. It also discusses templates, the universal inbox interface, and system components including definitions, item manager, and integrated inbox.
Minacs Spend Smart is an innovative spend management methodology that combines procurement fundamentals with modern techniques to strategically move legacy in-house buying activities to leveraging external capabilities. It provides a seamless set of outsourced procurement services including sourcing and category management, sourcing support, and purchasing operations. Minacs claims it can achieve significant negotiated savings and benefits for clients through its global skills, comprehensive solutions, and focus on capturing sustained value.
The document provides guidance on forming an effective company strategy in the simulation game Enginuity 2012. Some key points:
- Objectives for the next year could include increasing turnover, improving profitability, enhancing the company's reputation, and satisfying shareholders.
- A long-term strategy is needed to guide decision-making and avoid problems from unforeseen circumstances. The strategy should be periodically reviewed.
- Areas to focus on include utilizing assets, identifying new opportunities, improving client relationships, ensuring overhead costs are managed, and maintaining adequate staffing levels.
- The company's performance will be influenced by factors like the economic climate, competition level, and changes in the client base. An effective strategy adapts
How Skullcandy Handles Omnichannel from DRS, 7.29.14Digiday
Skullcandy went through a brand reset after chasing unhealthy revenue led them to brand damaging behaviors. The reset involved editing out unauthorized online dealers with inconsistent pricing, creating pricing parity across all Skullcandy retailers, enforcing consequences for pricing violations, and establishing consistent discount periods so the same products were discounted at the same time regardless of where customers shopped.
The document discusses GE's implementation of Six Sigma in the 1990s. Six Sigma is a business strategy focused on quality improvement through reducing defects. GE started a company-wide Six Sigma initiative in 1996 led by CEO Jack Welch. Senior managers were initially reluctant for change as the company was already successful. Welch pushed for the best employees to lead Six Sigma. GE supported it through incentives like requiring certification for raises. In the first year, 30,000 employees trained and $200 million was spent. By 1999, Six Sigma generated over $1 billion in value and changed GE's culture according to Welch.
The document discusses business valuation methods like the market approach, comparable transactions approach, and sum-of-parts method. It then discusses the synergy trap that acquirers can fall into when pursuing acquisitions based primarily on projected synergies. Acquirers often overpay for acquisitions due to unrealistic synergy projections, setting high performance targets that acquired companies struggle to meet. Studies find that most acquisition programs fail financially due to paying too high a premium without considering integration challenges. The document emphasizes that acquirers must quantify required synergies upfront to justify paying acquisition premiums.
The document summarizes IBM's business partner enablement programs for 2013 in the Nordic region. It outlines various training and skills development opportunities for partners, including the Know Your IBM program, Blue Xperts technical community, Business Partner Sales School, and technical workshops. It also discusses metrics to measure partner certifications and ways for partners to promote themselves through IBM's partner branding.
1) Custom Computer Specialists has over 30 years of experience helping public and private sector clients maximize the value of their IT investments through a range of consulting, implementation, and support services.
2) They determine requirements, assess costs and benefits, and develop appropriate timelines to design client-centric solutions that meet goals and deliver expected results.
3) As a privately-held company, Custom Computer Specialists offers flexibility and extensive IT capabilities to collaboratively design, implement, and support solutions that drive clients' success.
The document summarizes IBM's business partner enablement initiatives in the Nordic region for 2013. It outlines training programs like the Business Partner Sales School and Blue Xperts technical community to help partners improve skills. It also discusses incentives programs like Know Your IBM that reward partners for completing training and making sales. The landscape shows the various offerings available to partners at different participation levels.
The document outlines United Airlines' investor day presentation from February 2008. It discusses United's strategic plan to strengthen its core airline business and create shareholder value over five years. United aims to be the global airline of choice for customers, employees, and investors. The presentation highlights United's network, capacity discipline, revenue management practices, and sales strategies. It provides financial results showing United has led the industry in capacity discipline and PRASM growth.
The document discusses using high tunnels for crop production and the importance of profitability. It addresses pricing crops from high tunnels to capture price premiums for early season produce. The speaker emphasizes understanding customer perceptions of value and managing their experience to influence the gap between price paid and value received. Charts are presented on pricing decisions from the company and customer perspective, and how revenue can vary between determinate and indeterminate tomato crops depending on price changes through the season.
The document summarizes a consulting case study where ISON Consulting helped a new entrant in the passive infrastructure market define their sales strategy in India and explore entry into other markets. ISON analyzed the client's innovative tower and shelter design, conducted a market size analysis in India, defined an optimal pricing model, and recommended the client focus on manufacturing and installing towers under 21 meters in India while targeting more profitable developing international markets like Nepal, Cambodia, Nigeria, Tanzania, and Uzbekistan.
The document discusses using high tunnels for crop production and marketing to maximize profits. It addresses the importance of pricing crops to capture premiums early in the season. The author emphasizes understanding customer perceptions and the total experience to influence the gap between perceived value and price paid. Charts are presented showing the effects of price changes over the season on revenue. The overall focus is on financial analysis and pricing strategies to improve profitability when using high tunnels.
Actegy Consulting is a sales growth consulting firm founded in 1996 that helps sales leadership drive results. They provide workshops, roundtables, and advisory services to both large and small clients. Their client list includes companies such as Intel, Comcast, and ADP. They help clients address issues such as pressure from competitors, budget constraints, and slow decision making. Their services include implementing programs to assess and address at-risk accounts and follow formal decision-making processes.
This document announces a SaaS benchmarking study by The Alexander Group to provide sales leaders at SaaS companies with actionable insights into sales strategies and metrics. The study will collect data in three areas: 1) sales coverage and strategy, 2) revenue and costs, and 3) sales compensation. It will compare different sales models, revenue sources, costs, and compensation practices to help companies evaluate and improve their sales performance. Participation involves executive interviews, submitting standardized data, and receiving a confidential report comparing metrics to industry peers.
The document discusses various aspects of business models including value propositions, profit models, customer relationships, and key activities. It provides examples of different business model types such as subscription, loyalty programs, and low-cost carriers. Framework tools for designing business models are also introduced, including the value proposition designer and business model canvas for mapping the key elements of a business.
Dynamic Discounting: New Opportunities for No-risk, High-yield Cash ReturnsSAP Ariba
This document discusses dynamic discounting and working capital management strategies that can provide companies with no-risk, high-yield cash returns. It describes how Ariba offers collaborative commerce solutions that help companies buy, sell, and manage cash better through improved spend control, sales acceleration, and working capital management. Case studies are presented on how Republic Services and Dollar Tree have leveraged Ariba's dynamic discounting solutions to capture early payment discounts, drive new discount adoption, and increase cash flows.
The document provides an overview of a value reference model for supply chain services. It outlines the key areas of branding, marketing, purchasing, warehousing, producing, sales, and disposal/recycling. For each area, it maps the relevant services and processes such as procurement, inventory control, production planning, order fulfillment etc. The model aims to map the end-to-end value chain and interdependencies across supply chain functions.
Virgin Media's Shared Services department implemented an operational excellence program over 16 weeks to improve processes and reduce waste. Key activities included scoping current performance, engaging staff, providing Lean training, implementing 5S practices, mapping over 147 processes to identify waste, and establishing visual management systems. These changes reduced processing times, eliminated over 190 non-value added steps, and reduced the workforce by 14% while improving quality. The program established a foundation for continuous improvement through sustaining audits and a Lean coaching role.
1) Inventory optimization aims to maximize availability while minimizing costs through better demand forecasting and planning.
2) Accurate demand forecasting is key, and requires selecting the best forecasting models and optimizing parameters for each item.
3) State-of-the-art approaches use automatic, adaptive techniques to update models and parameters over time as new demand data becomes available.
Amr Research 0906 The Fast-Payback SAP Projects for Saving Money in 2009Faycal Chraibi
This document summarizes the key findings of a survey conducted for SAP clients on fast-payback projects that can reduce business expenses using existing SAP investments. The survey found that purchasing, supply chain, inventory management, and order fulfillment projects had the highest potential for cost savings. Sample projects showed order fulfillment and purchasing projects achieved the fastest payback times. Most companies measure benefits after project completion but are evenly split between other measurement approaches.
The document summarizes the Innovative Partnerships Program (IPP) at NASA. IPP provides funding and partnerships to advance technologies through programs like SBIR/STTR, seed funding, and partnerships with industry/academia. The document outlines various IPP elements and initiatives, and provides examples of technologies funded by SBIR that were infused into NASA missions like Mars rovers, Hubble Space Telescope, and Deep Impact. It also summarizes the IPP Seed Fund, which leveraged $6.6M in funding into $28.3M in public-private partnerships across all NASA directorates.
The document provides an overview of SAP Workflow concepts including basic terminology, the position of workflow in the SAP R/3 system, how workflow automates business processes, benefits of workflow, examples of workflow objects, events, methods and tasks. It describes the structure of a workflow definition including conditional processes, parallel processes, and loops. It also discusses templates, the universal inbox interface, and system components including definitions, item manager, and integrated inbox.
Minacs Spend Smart is an innovative spend management methodology that combines procurement fundamentals with modern techniques to strategically move legacy in-house buying activities to leveraging external capabilities. It provides a seamless set of outsourced procurement services including sourcing and category management, sourcing support, and purchasing operations. Minacs claims it can achieve significant negotiated savings and benefits for clients through its global skills, comprehensive solutions, and focus on capturing sustained value.
The document provides guidance on forming an effective company strategy in the simulation game Enginuity 2012. Some key points:
- Objectives for the next year could include increasing turnover, improving profitability, enhancing the company's reputation, and satisfying shareholders.
- A long-term strategy is needed to guide decision-making and avoid problems from unforeseen circumstances. The strategy should be periodically reviewed.
- Areas to focus on include utilizing assets, identifying new opportunities, improving client relationships, ensuring overhead costs are managed, and maintaining adequate staffing levels.
- The company's performance will be influenced by factors like the economic climate, competition level, and changes in the client base. An effective strategy adapts
How Skullcandy Handles Omnichannel from DRS, 7.29.14Digiday
Skullcandy went through a brand reset after chasing unhealthy revenue led them to brand damaging behaviors. The reset involved editing out unauthorized online dealers with inconsistent pricing, creating pricing parity across all Skullcandy retailers, enforcing consequences for pricing violations, and establishing consistent discount periods so the same products were discounted at the same time regardless of where customers shopped.
The document discusses GE's implementation of Six Sigma in the 1990s. Six Sigma is a business strategy focused on quality improvement through reducing defects. GE started a company-wide Six Sigma initiative in 1996 led by CEO Jack Welch. Senior managers were initially reluctant for change as the company was already successful. Welch pushed for the best employees to lead Six Sigma. GE supported it through incentives like requiring certification for raises. In the first year, 30,000 employees trained and $200 million was spent. By 1999, Six Sigma generated over $1 billion in value and changed GE's culture according to Welch.
The purpose of this study is to understand the new product development process of Skullcandy. Study will take an in-depth how the Skullcandy product development process was constructed and how the team dynamics are aligned to achieve the company goals. Also the strategy of team compositions and size help to handle more than one project at any given time. Further, study will look in to the challenges faced by the company to retain employees and motivate them to do their best.
The document discusses strategies for improving organizational performance through aligning operations with strategic goals. It introduces the balanced scorecard approach, which translates strategy into objectives and initiatives across four perspectives: financial, customer, internal processes, and learning and growth. Sample strategy maps and scorecards are provided for several strategic themes, including achieving a low-cost market position, product innovation, improving sales performance, and optimizing resource allocation. The balanced scorecard framework is intended to help organizations execute strategy through consistent focus, measurement, and resource allocation.
This document summarizes Chip McClure's presentation at the Bear Stearns Global Transportation Conference on May 8, 2007. It provides highlights that Raytheon's 2007 EPS guidance is reduced but margins are improving. It is optimistic about 2008-2009 commercial vehicle volumes. The Performance Plus plan aims to add $150 million to EBITDA by 2009 through restructuring and cost reductions, with potential for more from growth initiatives. The presentation outlines restructuring expenses, benefits, and personnel reductions through 2009. It also describes plans to restore margins through collaborative efforts with customers and reductions in overhead, materials, and manufacturing costs.
This document contains the summary of a presentation by the Chairman, CEO, and President of a company at a transportation conference on May 8, 2007. The presentation highlights that the company's 2007 EPS guidance is reduced but margins are improving. It is optimistic about 2008-2009 commercial vehicle volumes. The company's Performance Plus plan is expected to add $150 million to EBITDA by 2009 through cost reductions and restructuring. Personnel reductions will impact both manufacturing and white collar workers. The majority of direct material optimization efforts will focus on restoring margins.
Every day technical communication teams are being asked to do something new. Given the rate of change that is apparent in the marketplace, and the expanding array of new devices and venues that will need to be supported, this trend will only accelerate. One question that comes up is how do teams explore the new publishing pathways so that they can determine what changes they will need to their overall content creation and publishing process. Join Intelligent Content thought leader Joe Gollner as he guides us through some proven steps in exploring new information products and refining content processes. In particular, this session will introduce the concept of a content scenario, a technique he has used for years to help organizations adapt their information product portfolios efficiently and effectively. As part of this session, Joe will introduce a public domain content scenario for helping projects to explore how DITA might be used to address certain types of new information product. Join Joe Gollner and Adobe product evangelist Maxwell Hoffmann for this practical session on how technical communication teams can handle the demands being sent their way.
Presentation on Activity Based Costing and Management (ABCM) applications in the telecom industry as presented to the Telecom Research Project of HKU in 2002.
http://trpc.biz/tag/alan-lung/
The document discusses return on assets (ROA) as a key performance indicator for measuring staff performance at both the macro level and individual employee level. It provides definitions and formulas for calculating ROA, and explains how to attribute assets, income, and profits to individual employees through responsibility accounting and transfer pricing between departments. Implementing ROA metrics at the employee level aligns individual performance with corporate goals and allows for more precise performance measurement.
CO-PA allows companies to analyze profitability by market segments defined by characteristics like products, customers, and regions. It uses master data like cost elements, characteristics, and profitability segments. Actual values flow into CO-PA from transactions in modules like SD, FI, and CO-PC. Planning is done using versions, levels, and data transfer from other modules. Reports provide drilldown and detail views of profitability analysis.
The document discusses customers switching from Hyperion to SAP's Business Planning and Consolidation (BPC) software. It notes that customers reported Hyperion had high costs due to separate apps for planning and consolidation, was managed by IT rather than finance, and had weak workflow capabilities. The document then describes a case study of a customer that initially failed to implement Hyperion and later chose BPC over Hyperion because it was an integrated product and had lower ongoing operating costs.
This document provides an overview of ABM Consult and their services to help clients improve performance. ABM Consult helps clients by defining goals and strategies, identifying critical competencies, designing systems and processes, and developing effective team leadership. Their programs include consulting, training workshops, and team building. Key benefits of their programs include improved performance, customer satisfaction, leadership, continuous improvement, and effective problem solving. Their performance management approach uses a strategy map to link objectives, measures, targets, and initiatives across financial, customer, process, and learning & growth perspectives.
What Does It Cost? Activity Based Cost Managementalanlund
This document discusses activity-based costing (ABC) and its benefits. ABC assigns overhead costs to products and services based on their consumption of resources rather than traditional methods that allocate costs in proportion to direct costs. The document recommends developing a cost management strategy including mapping processes, reviewing general ledger accounts, and developing an ABC cost model to determine unit costs for products/services by factors like customers and cost centers. ABC provides decision makers profitability information and highlights how efficiently activities are performed and who benefits from activities.
This document discusses managing economic volatility and Kingfisher Airlines' financial troubles. It provides a cause and effect diagram showing factors that contributed to Kingfisher's debt of Rs. 7,000 crore and ongoing losses. These include high fuel prices, interest rates, cancellation fees, and declining passenger numbers. The document proposes actions like debt restructuring, allowing foreign direct investment, and negotiating with banks for lower interest investment to boost confidence and reduce Kingfisher's financial burden.
2011 pmo symposium Bridging the Agile-to-PMO Communication GapBrent Barton
Traditional EVM makes no sense in software (and is potentially harmful) because claiming value earned based on intermediate work products--without an assertion of quality--does not provide reasonable forecasts. Agile provides an assertable and inspectable quality. Also, by ordering in terms of highest Business Value and risk considerations along with potentially shippable increments, I believe starts to include notions of value. Still, AgileEVM measures performance against plans (that can be re-baselined every iteration if needed). AgileEVM integrates cost management. Doing it well means not giving up what Agile offers: adaptive planning, quality.
Leadership map by Mr Sudhakar Rao at HRRT organised by ISPE & UPES DehradunUPES Dehradun
This document discusses leadership challenges for high performing companies and how SAP solutions can help address them. It outlines key challenges such as globalization, economic downturn, innovation demands, and talent retention. SAP presents itself as the #1 leader in HR software with over 20,000 customers and 500+ in India. The document advocates using SAP's integrated suite to automate transactions, improve reporting and analytics, and enable best practices in areas like skills inventory, talent management, and end-to-end performance management. Case studies show how SAP can help with workforce planning, training, and succession strategies.
Learn about how to shape the organization structure, processess, and functions in line with the business strategy and realities of the business. HR becomes a strategic partner with the business leaders in driving bottom-line results.
BYD follows three key strategies:
1. Vertical integration through backward and forward integration to control the value chain and reduce costs.
2. Low cost leadership through investing in labor, minimizing R&D costs, and exploiting China's low labor costs.
3. Strategic innovation in electric vehicles, batteries, and new products to be the first mover in new markets.
Value Republic Company Presentation 2010ictcomfort
Value Republic is a consulting firm that helps clients optimize spending through three main approaches: 1) Optimizing volumes by implementing spend management practices like zero-based budgeting to control costs and volumes, 2) Optimizing prices through improved procurement practices and policies, and 3) Effectively reinvesting identified savings. They provide services like spend management, procurement training, and an e-sourcing tool. References are available upon request.
at ADAPT: AgileEVM Delivering Value within Constrained SystemsBrent Barton
The document discusses Agile Earned Value Management (AgileEVM) as an approach to integrate earned value management with Agile project management frameworks. It describes some of the challenges with applying traditional EVM to Agile projects due to its reliance on fully defined requirements upfront. AgileEVM uses planning packages to forecast future work that is not yet fully defined and refines the plans as more details become known. It also focuses on delivering working software in short iterations rather than intermediate work products.
The document discusses delivering world class profitability and cost management. It describes how companies can better understand how they make profits and the relationships between cost objects to identify inefficiencies. It also talks about how to support business decisions through simulations and what-if analysis. Finally, it provides an example of how one famous American bank used these techniques.
Similar to Resource Management + OFTA case study (27 Aug 2005) (20)
1) The document discusses the shift from traditional science diplomacy to innovation diplomacy, as globalization has increased scientific and innovation collaboration internationally.
2) Innovation diplomacy involves assessing risks and opportunities across the entire innovation value chain when collaborating between countries. It also faces challenges of differing intellectual property regimes and incentives between public and private actors.
3) Countries are employing new approaches to innovation diplomacy, including funding collaborative R&D partnerships, policy dialogues, international institutional networks, and addressing global challenges through coalitions. However, formal innovation diplomacy strategies remain rare.
Our HK Foundation's report -- based on a draft provided by the Victor and William Fung Foundation through the work of Fung Business Intelligence Centre
This report presents the Human Freedom Index (HFI), a new measure of human freedom covering 152 countries. The HFI uses 76 indicators to measure personal, civil, and economic freedoms in areas such as rule of law, movement, religion, and size of government. Hong Kong, Switzerland, and Finland rank as the top three most free countries. The Middle East, Sub-Saharan Africa, and South Asia have the lowest freedom, while women's freedoms are least protected in those regions. Countries with higher freedom have significantly higher incomes. The HFI finds a strong correlation between freedom and democracy, though Hong Kong is an outlier with high freedom but not democracy.
This document discusses alternatives to the current democratic system in Hong Kong that could improve governance. It proposes establishing government-sponsored Future Centres, modeled after similar organizations in Europe. These centres would engage stakeholders in policymaking through research and civic participation. They aim to address issues like policy failures, lack of consensus building, and the government's limited capacity to solve complex problems. The document argues Future Centres could help re-establish public trust in government and alleviate irrational discussions in politics.
This document summarizes a report on crowdsourcing for democracy. It begins with an introduction stating that the report examines cases where crowdsourcing has been used in policymaking processes. It then provides definitions of crowdsourcing, explaining that it involves open online participation in tasks by an undefined group. The remainder of the report provides examples of crowdsourcing applications and analyzes its role and potential in democratic processes.
This document summarizes a report on the future of manufacturing. It finds that manufacturing relies on three pillars: factors of production, standards, and costs. Emerging technologies are transforming manufacturing through new waves of innovation. While offshoring and outsourcing have reshaped manufacturing, new trends toward nearshoring and reshoring are emerging as capabilities develop and input costs change. The report examines these trends and challenges in shifting the global economy.
This document discusses how population aging and increased longevity can create new markets and drive economic growth in the 21st century. It notes that major global companies have recognized aging as a strategic driver of commercial goals and a way to attract talent. While talk of "crisis" is common, many see aging as a powerful market opportunity if the right strategic framework is put in place. Both private sector innovation and supportive public policies will be needed to fully capture the opportunities of aging populations and create environments where people can enjoy long and active lives.
The document outlines 10 innovative urban solutions from around the world that address challenges facing cities. These solutions focus on principles like unleashing spare capacity, cutting demand peaks, small-scale infrastructure, and being people-centered. The innovations highlighted include (1) digitally re-programmable spaces that better utilize existing urban infrastructure; (2) an "Internet of Pipes" using sensors to monitor water networks and identify issues; and (3) using social networks for citizens to "adopt" and care for urban trees.
This document summarizes the history of trade policies used by developed countries during their early stages of development. It argues that contrary to popular belief, virtually no developed countries practiced free trade when they were developing. Instead, they actively promoted their industries through measures like tariffs, subsidies, and import restrictions. Specifically, it discusses how Britain promoted the wool industry in the 15th century and implemented policies like import tariffs and export subsidies in the 18th century to develop manufacturing. The document aims to debunk the myth that free trade led to development and argues historical evidence shows interventionist policies were more common.
The document summarizes five future centers located in the Netherlands that aim to promote innovation in the public sector. It describes each center's focus and goals. The Country House is a joint initiative between four Dutch ministries focused on tackling multi-sector issues. Mobilion serves as a prototype future center for the Department of Public Works & Water Management to address challenges in transportation and water infrastructure. The centers provide workspaces and facilities to encourage collaboration between civil servants and stakeholders on issues facing the government.
The report discusses international developments in IP trading and Hong Kong's position. Globally, IP trading is growing rapidly driven by innovation. The use and creation of IP is shifting towards Asia, especially China. China has overtaken the US in patent applications and leads the world in trademarks and industrial designs. Hong Kong has advantages as an IP trading hub due to its sound legal system, low tax regime, and position as a super-connector between China and the world. The report aims to develop strategies to promote Hong Kong as a premier IP trading hub.
Europe has experienced two fractures in its industrial landscape over the past decades. First, emerging economies like China and Brazil have greatly increased their manufacturing output and share of global production. Second, some traditional European industrial powers like France and the UK have seen declines in industrial employment and value added, while Germany and Eastern European countries have retained stronger industrial sectors. For Europe to maintain 15-20% of value from industry, it will need to invest heavily to transition to new digital technologies and production methods known as Industry 4.0.
More from Asia Pacific Intellectual Capital Centre Ltd (20)
Resource Management + OFTA case study (27 Aug 2005)
1. Effective
Resource
Management
How Activity-based Costing
could facilitate effective
resource management
Presented by
Workshop
Jointly Organised by AIA & HKU
Saturday, 29 March 2003 SPACE
Saturday 27 August 2005
Dr Joseph Yau, HKU SPACE
Mr Alan Lung, ABCM Consulting
ABCM Consulting
2. Contents:
Perspectives in Resource Management
2.30-2.45
Building an analytical framework -- from
2.45-3.00
historical data to fact-based management
Highlights of ABC theories: The CAM-I
3.00-4.00
Cross, Resource, Activity, Cost Object
and Drivers
Case Study – OFTA and Manufacturing
4.15-4.30
Cases
Some Practical Implementation Issues
4.30-4.45
Group Discussion and Group
4.45-6.00
Presentation
ABCM Consulting
3. What is resource management?
• An accounting term?
• A public administration jargon?
• Resource = Money? Property?
• Resource = Knowledge, Skill, People?
ABCM Consulting
4. Managing Resources in a
Government (Bureaucratic)
Organizations
• Resource Allocation
• Resource Deployment and Re-
deployment
• Resource Review
ABCM Consulting
5. Please suggest ways for HKSAR Government to
allocate the following resources
ABCM Consulting
6. HRG/DRG is not likely to be
implemented soon …
ABCM Consulting
7. Typical Resource Allocation
• Policy Objectives
• Key Result Areas by Programme (or CSF?)
Global
Allocation
Proposed
Distribution Refined
Distribution
Key
Performance
Indicators Execution
Programme Objectives
Initiatives
ABCM Consulting
8. What are the features of effective
Resource Management?
• Availability of physical, human,
financial and intangible resources
• Deployment and re-deployment
• High value-added in core and
supporting processes
ABCM Consulting
9. What are the handicaps in the
government sector?
• Salaries constitute a very high %
of total cost
• Little room for reduction in direct
costs
• Difficult to identify non-value-
added activities
ABCM Consulting
10. Output/Outcome
Management: How much “Inputs”
(Resource) are used to produce specific
outputs? Were those “Outputs” (Services) useful
to the “Outcomes” (Policy Objectives)?
OUTCOMES
OUTPUTS
IN PUTS
Activities
ABCM Consulting
11. Are all your customers Profitable?
Profitability Analysis by Total Profit($) and Margin(%)
Best
customer
Profit($)
low priority in
Total
productionQuantity
Profit
(before
HQ Costs)
Manufacturing
FOB Cost
increase
Revenue
Material
quantity
Cost
increase
FOB
Margin(%)
cost
reduction
ABCM Consulting
12. CPA: Customer Profitability
Analysis
cumulative
profit
Hidden
profit
Actual
profit
Differences in Cost-to-serve
Different customers
use different 0 Products ranked: most profitable first..
activities Customer A Customer B
cumulative
profit
Hidden
profit Customers are
Actual
profit
easier to influence
than products
0 Products ranked: most profitable first..
Product A Product B
Possibilities to influence
ABCM Consulting
13. Management
Business planning, finance and control
Training and management development
Housing
MIS
Staff, logistics and quality assurance
Produc Ser-
ary
Manu- Marketi
t Procur Assem Strategic Cost Management
Deliver
facturi ng and Product costing
Prim
develo ement bly y vice
ng Sales Price setting
p-ment
..and do you recognize the
Portfolio management
Customer profitability
ABC
hidden profit ??
cumulative
profit
Hidden
Traditiona profit
l
Actual
profit
0
Products ranked: most profitable first..
Product A Product B
Hidden profit...drive to improve
ABCM Consulting
14. Other reasons for using ABC at a
Label Manufacturer
• Customer request short TAT increase service level
• Tighter Cost Control
• Eliminate Non-value added activities
• Identify the profitable customer/product
• Evaluate if we intend to keep the account which are in
lost. If so, what we can do to minimize it
• Achieve corporative objective
ABCM Consulting
15. Project Objective for a PCB
Manufacturer
Determine the costs of all activities and resources
associated with the PCBs production
Evaluate and test the appropriateness of Activity
Based Costing for a PCB manufacturer
Reveal the “true cost” for the PCBs production at the
company’s core activities
ABCM Consulting
16. Contents:
Perspectives in Resource Management
2.30-2.45
Building an analytical framework -- from
2.45-3.00
historical data to fact-based management
Highlights of ABC theories: The CAM-I
3.00-4.00
Cross, Resource, Activity, Cost Object
and Drivers
Case Study – OFTA and Manufacturing
4.15-4.30
Cases
Some Practical Implementation Issues
4.30-4.45
Group Discussion and Group
4.45-6.00
Presentation
ABCM Consulting
19. Short History of Balanced Scorecard
2004: Intangible Assets are the key
value drivers in organisations – they
account for 75% of value!
Strategy Maps – describing how an
organisation intend to create and
sustain value for shareholders
Link processes to measurements (BSC) –
put emphasis on the Value Creation
Processes
Aligning intangible assets (Human
Capital, Information Capital and
Organisation Capital) to strategy –
alignment of Knowledge
Management concepts and BSC Consulting
ABCM
20. Strategy is also a New
Destination (Getting from A to B)
Successfully
Executed
Strategy
Landmark 2
Landmark 1
Formation of a
Strategy
26. St r at egy/ Goals
Balanced Scorecard’s
relationship to ABC:
Grow t h & Custom er People Process Et hics & Financial
I nnovat ion Sat i sf act ion Com mit m ent Quali ty Compl iance
Crit ical Success Fact or s ( CSFs)
Or ganizat ion Perfor m ance Measur es
Functional View
Divisional or Pr ocess Level Per for m ance Measur es
Resources
Process View
St r ategy/ Goals
Balanced Scorecard and
Gr ow t h & Cust om er Pe opl e Pr oce ss Et h i cs & F in ancia l
Cost
I n n ovat io n Sa t isf act ion Co mm it men t Qu ali t y Com p li an ce
Cri t ical Success Factors ( CSFs)
ABC/M share:
Drivers Activities Or gani zat ion Per for m ance M easur es - Activities,
Divi sion al or Pro cess Level Per for man ce M easur es - Resources,
- Cost
Cost Objects
http://www.cam-i.org ABCM Consulting
27. Contents:
Perspectives in Resource Management
2.30-2.45
Building an analytical framework -- from
2.45-3.00
historical data to fact-based management
Highlights of ABC theories: The CAM-I
3.00-4.00
Cross, Resource, Activity, Cost Object
and Drivers
Case Study – OFTA and Manufacturing
4.15-4.30
Cases
Some Practical Implementation Issues
4.30-4.45
Group Discussion and Group
4.45-6.00
Presentation
ABCM Consulting
28. “Most companies in Hong Kong
use financial statements to run
their business – a situation that
is neither adequate
nor satisfactory …”
ABCM Consulting
29. “How do we use fact-based and
quantity-based management
information systems to measure
ourselves objectively ?”
ABCM Consulting
30. Limitation of Traditional
Financial Accounting Approach
• Broad-brush allocations e.g. based on
product volume, revenue size, no. of
staff ……..
• Historical … not forward-looking
• Non-value-added activities and cost due
to inefficiency can NEVER be detected!
ABCM Consulting
31. What is ABC?
• Resources are consumed by Activities
• Activities are consumed by Products/Services
Products
Resources Activities &
Services
ABCM Consulting
33. The Need for ABC
A key to understanding ABC is to understand how cost
behavior truly varies in relation to other factors
Changes in Cost Structure
100%
Overhead The demand for
overhead activities
Cost Direct are not much linked
Material
Components to sales or
production volume.
They result from:
• The diversity and
complexity of
Direct (recurring) Labor products, services
and customers
• Quality levels
• Rates of needed
1950s 1990s change
0%
Old-fashioned Hierarchical Integrated
Stages in Business Evolution
ABCM Consulting
34. Management
do you recognize the peanut
Business planning, finance and control
Training and management development
Housing
MIS
Staff, logistics and quality assurance
Produc Ser-
ary
Manu- Marketi
t Procur Assem Strategic Cost Management
Deliver
facturi ng and Product costing
Prim
develo ement bly y vice
ng Sales Price setting
p-ment
butter (i.e. spreading)
Portfolio management
Customer profitability
“Simple" clients that..
effect ??
“Pain in the .." clients that..
• Plan their ordering • Demand quick, ad hoc delivery
• Order big volumes at one time • Order small quantities
• Order on time • Order too late
• Order standard product • Order only special products
Not getting rewarded because Not paying for the extra costs
traditional calculation.. they cause..
Lots of wrong decisions are caused by poor calculation practices..
ABCM Consulting
35. Resource
“An economic element that is
applied to or used in the
performance of activities.”
Defines what is needed
Defines what is needed
Adapted from The CAM-I Glossary of
Activity-Based Management, Edited by
Norm Raffish and Peter B.B. Turney,
(Arlington: CAM-I, 1991.)
ABCM Consulting
37. Activity
“Work performed within an organization.”
What we do
What we do
Adapted from The CAM-I Glossary of
Activity-Based Management, Edited by
Norm Raffish and Peter B.B. Turney,
(Arlington: CAM-I, 1991.)
ABCM Consulting
39. Cost Object
“Any customer, product, service, contract,
project, or other work unit for which a separate
cost measurement is desired.”
What we work on
What we work on
Adapted from The CAM-I Glossary of
Activity-Based Management, Edited by
Norm Raffish and Peter B.B. Turney,
(Arlington: CAM-I, 1991.)
ABCM Consulting
41. Management
Business planning, finance and control
Training and management development
Housing
MIS
Staff, logistics and quality assurance
Produc Ser-
ary
Manu- Marketi
t Procur Assem Strategic Cost Management
Deliver
facturi ng and Product costing
Prim
develo ement bly y vice
ng Sales Price setting
p-ment
..and do you recognize the
Portfolio management
Customer profitability
ABC
hidden profit ??
cumulative
profit
Hidden
Traditiona profit
l
Actual
profit
0
Products ranked: most profitable first..
Product A Product B
Hidden profit...drive to improve
ABCM Consulting
42. Management
Business planning, finance and control
Training and management development
Housing
MIS
Staff, logistics and quality assurance
Produc Ser-
ary
Manu- Marketi
t Procur Assem Strategic Cost Management
Deliver
facturi ng and Product costing
Prim
develo ement bly y vice
ng Sales Price setting
Realize hidden profit
p-ment
Portfolio management
Customer profitability
Loss making products Profitable products
(or customers) (or customers)
POTENTIAL: POTENTIAL and REDUCE RISK:
•Increase price (competition can’t do it •Sell more of this product or to this kind
cheaper either!) of customer
•Stop (let your competitor serve these •Know how much you can decrease
loss-making customers) price in case the market dictates so
•Reduce cost •Get more volume by discounting (at a
level where you are still profitable)
•Lower specs
•Pamper thes customers, don’t let
•Process improvement competition take these!
ABCM Consulting
43. Management
Business planning, finance and control
Training and management development
Housing
MIS
Staff, logistics and quality assurance
Produc Process Optimization Ser-
Manu- Marketi
t Procur Process Costingand Deliver
Assem
facturi ng
develo ement Activity-Based-Costing
bly y vice
ng Sales
p-ment Evalution of Process Improvements
ABM creates new insight
Investment decisions
Make or Buy
Reporting on Cost
Activity-based-report
Categories
Shipping Dept Budget
Shipping Dept Budget ($ 1000)
($ 1000)
Plan trucks 29
Salaries 600
Transport 838
Material 372
Load trucks 130
Energy etc. 32
Waiting time trucks 185
Depreciation 275
Check delivery 32
Office supplies 28
Manage staff & resources 27
Other 8
Train staff 36
1315
Maintain buildings 38
1315
ABCM Consulting
44. Management Control the Support Staff
Business planning, financeActivity Analysis
Overhead and control
Training and management development
Housing Transfer Pricing
MIS Transparency in Overhead and Staff Departments
Staff, logistics and quality assurance
Service Level Agreements
Produc Ser-
Manu- Marketi
t Procur Assem Deliver
facturi ng and
develo ement bly y vice
ng Sales
Control the Support Staff
p-ment
• Overhead Activity Analysis
• Transfer Pricing
• Transparency in Overhead
and Staff Departments
• Service Level Agreements
30-50% of costs is overhead
Many people
E.g. the IT
in headoffice,
department
management
and staff
Cost Management makes
overhead manageable
ABCM Consulting
45. ABC Doesn’t Replace the Accounting
System
An ABC/ABM system does not replace the accounting system. It restates the
same data and adds operating relationships to more effectively support
decision making.
Data Data+ Information
A Ms. Strategy
General B
A blizzard of Ledger C
transactions (expense /
Mr. Operations
account A
balances) B
M
An Optical Decision makers
Lens
Accumulator (Reassigns
Costs)
ABCM Consulting
46. Three Views of Cost
Operational View
Today
Financial Strategic
View Yesterday Tomorrow View
?
ABCM Consulting
47. HOW ABC IS USED
Product Costing
Cost Reduction
Profitability Analysis
Process Improvement
Cost Estimation
Performance Measurement
Pricing Models
Business Process Re-engineering
Benchmarking
Target Costing
Inventory Valuation
Capacity Utilization
Budgeting
Other
Capital Justification
Downsizing
Project Management
Compensation/Gain-sharing
Number of 0 20 40 60 80 100 120
Sites
16
ABCM Consulting
48. Contents:
Perspectives in Resource Management
2.30-2.45
Building an analytical framework -- from
2.45-3.00
historical data to fact-based management
Highlights of ABC theories: The CAM-I
3.00-4.00
Cross, Resource, Activity, Cost Object
and Drivers
Case Study – OFTA and Manufacturing
4.15-4.30
Cases
Some Practical Implementation Issues
4.30-4.45
Group Discussion and Group
4.45-6.00
Presentation
ABCM Consulting
49. Switching
from
Input Accounting
to
Output/Outcome
Management
at
OFTA
ABCM Consulting
50. About OFTA
• Executive arm of the Telecommunications
Authority (Established by statue in 1993)
• Technical and economic regulator
• Dual role of ensuring
– fair competition,
– that Hong Kong gets the best telecom services
• Trading Fund Organization – ensuring “Cost
Recovery”
• Place high priority on training and
development
ABCM Consulting
51. A Systematic Way to
Understand Costs
• Full Cost Recovery from fees charged
• Relative cost and benefits of services
delivered
• High cost is weigh against social
benefits
• ABC versus traditional costing:
– “Cost Triggers” vs.
“Revenue Based” and “Headcount
Based” accounting
• Pricing of “Products” based on
true costs
ABCM Consulting
52. OFTA
ABC Conceptual Cost Flow
General Ledger Resources Activities Cost Objects
G/L
Cost Pool Resource Cost Activity Cost
Drivers Drivers Drivers
Licences
Classification of G/L Items into Cost Resource Cost Pools - Activities - by Section
Baseline by Staff Grade
G/L Items Cost Baseline Computer Services
Computer Services
Business Sustaining
Audit Fee Cost For example:
Telephone - mobile Direct Operation Support
Printing Administration Trouble-shooting and Maintenance
Depreciation For example: System and Network Administration
Electricity Communication SITM Security Management
Staff Salaries ITM Development
Advertising Computer & Elect. ITO Licensing System Redevelopment
Equip IT Preventive Maintenance
. Web Updating Activity Driver
. Utilities Standards Supervision (Evenly Assigned) Surveys
. Support Cost (Ave. % of time spent)
. Office expenses Percentage PRS-2G
. Resource Standards No of requests PRS-3G
External Affairs 1
. Driver: No. of Systems Mobile Radio System
. Office Facilities Allocation Time # of headcount
External Affairs 1 Fixed Network
Keys External Affairs 2 # of licences
Maintenance Survey # of reports
Ship Station
(office & Equip) External Affairs 2 # of cases Fixed Carrier (Restricted)
# of participants Broadcast Relay Station
Administrative Services # of applications Radio Paging System
Depreciation Administrative Services
(Note) . .
. .
Corporate Affairs Corporate Affairs . .
Publicity & . .
Promotion .
Finance Finance .
.
People Cost RMU + Investigation &
RMU + Investigation & Prosecution
Prosecution
Senior Management
Cost Inspection & Licensing
Inspection & Licensing
Transportation Regulatory & Training
. Regulatory & Training
. Business Sustaining
.
. Other Section's Support
. Cost
.
Note: In the model, depreciation categorised as: Activity
- Land & Building Support Cost
- Computer, Furniture & Fixtures Intra-
- Telecom Equipment
- Vehicle Assignment
ABC provides more relevant information as it turns more indirect costs into direct costs
ABCM Consulting
53. ABC Conceptual Flow at OFTA
• For 2002/03, OFTA has
– No of Resource items: 165
– No of Activities: 599
– No of Cost objects (products): 50
• Results
– Project commenced in May 2003 and first
management report issued in Sept 2003
– More understanding on the costs of
telecommunications licences
– Enterprise-wide model developed with less indirect
costs and more direct costs identified
ABCM Consulting
54. “The ABCM exercise in OFTA gives us an
opportunity to evaluate services costs and re-
deploy resources in a more effective manner.
But senior management should be prepared to
communicate openly and explain the reasons
behind an ABC exercise to avoid having the
potential misconception problems”
WONG Kwok-shu, Assistant Director
Office of the Telecommunications Authority
ABCM Consulting
55. Four Stages of Implementation
• Stage One: Consultants to provide
conceptual training and conduct a pilot
study
• Stage Two: Map out plan to roll-out using
own staff
• Stage Three: Further conceptualization
and explanation to staff at each level
• Stage Four: Organization-wide
implementation (to be completed in
2004/2005 Financial Year)
ABCM Consulting
56. Experience Learnt
• Avoid setting too aggressive targets
– Agree the cost objects with top and middle management
– Restrict the number of activities and cost objects
– Allow enough time for checking and review
• Importance of management support and teamwork
– Seek support from top management
– Require team efforts (project team members
and other staff)
• Importance of face to face communication
– Conduct in-house interviews to complete the
Activity Dictionary (24 interviews arranged
with duration of 2 hours each)
– Convene meetings to explain the logic and
reasons for ABC implementation
(4 meetings held)
ABCM Consulting
57. Future direction of ABC at OFTA:
Automation & Refinement
• Automate data integration between
ABC database and data gathering
process
– e.g. develop time log system to
capture time spent
• Refining the ABC Model framework
– capture of regular cost and driver data
ABCM Consulting
58. Future direction of ABC at OFTA:
Predictive Planning
• Launch Activity Based Management
Initiatives
– continuous improvement on ABC information to
facilitate predictive resources management and
pricing decisions
ABC
ABB
Past Now Future
ABCM Consulting
59. Future direction of ABC at OFTA:
Output/Outcome Management
OUTCOMES
OUTPUTS
IN PUTS
Activities
ABCM Consulting
60. Conclusion – About OFTA
• Executive arm of the Telecommunications Authority (Established by statue in 1993)
• Technical and economic regulator
• Dual role of ensuring
– fair competition,
– that Hong Kong gets the
best telecom services
• Trading Fund Organization – ensuring “Cost Recovery”
OUTPUTS
• Place high priority on training and development
ABCM Consulting
Future direction of ABC at OFTA:
Output/Outcome
Management
OUTCOMES
OUTPUTS
IN PUTS
Activities
www.qprcostcontrol.com
ABCM Consulting
61. Contents:
Perspectives in Resource Management
2.30-2.45
Building an analytical framework -- from
2.45-3.00
historical data to fact-based management
Highlights of ABC theories: The CAM-I
3.00-4.00
Cross, Resource, Activity, Cost Object
and Drivers
Case Study – OFTA and Manufacturing
4.15-4.30
Cases
Some Practical Implementation Issues
4.30-4.45
Group Discussion and Group
4.45-6.00
Presentation
ABCM Consulting
62. Implementing Fact-based Resource
Management
• Mis-conception About ABC
Implementation – too
complicated
• Rapid Prototyping
ABCM Consulting
63. Mis-conception about ABC
Implementation
• It involves a massive enterprise-wide
involvement of people and mudslide of
data
• No result until the ABC system is
completely constructed
• It will take forever to implement and
perhaps may not worth the effort
ABCM Consulting
64. ABC Application Adopting Iterative
Prototyping
• Education and awareness
• High-level modeling (Model “0”)
• Analyzing Model “0” to get buy-in
• Securing and propagating the
Learning: A Communication Plan
• Lower-level modeling (Models “1”,
“2” etc)
ABCM Consulting
65. Level “0” Modeling
• Usually starts with the ledger expenditure
data
• Obtain crude data through interviews to
identify work activities, work products, and
the time involved
• Aim at “aggregated” (i.e. grouped) cost
drivers
• It will only take a few days to complete
• ABC Team will spend more time on learning
the approximation error in the ABC “cost
assignment”
ABCM Consulting
66. Rapid Prototyping, BEFORE
Piloting
• Not to work on detailed costing, just
to stimulate participants
• Will not necessarily provide final
answer
• It starts with crude approximations
• Accuracy to be refined in the lower-
level models
ABCM Consulting
67. The Typical ABC Team
• A Project Leader
• Professionals
• Application services
• In-house modeler (not necessary be
accountant or cost engineer)
• External consultant (NOT a must)
ABCM Consulting
68. Contents:
Perspectives in Resource Management
2.30-2.45
Building an analytical framework -- from
2.45-3.00
historical data to fact-based management
Highlights of ABC theories: The CAM-I
3.00-4.00
Cross, Resource, Activity, Cost Object
and Drivers
Case Study – OFTA and Manufacturing
4.15-4.30
Cases
Some Practical Implementation Issues
4.30-4.45
Group Discussion and Group
4.45-6.00
Presentation
ABCM Consulting
69. Thank you!
Q&A
For more information, contact:
Alan Lung, Consultant & General Manager
ABCM Consulting(China)Ltd
Tel: +852 2503-1383 Fax: +852 2503-3645
E-mail: alanlung@abcmconsulting.com
ABCM Consulting
Editor's Notes
Framework Employees now have tangible, measurable goals that they can address that will support the execution of organizational strategy. Employee action is now directed towards achieving CSF ’ s. Measuring progress towards CSF ’ s indicates success at implementing strategy.