We discovered that there are these eight key drivers that drive up the value of a company. The Value Builder assessment gives you a score for each of those eight drivers. This paper gives you the detail behind the Financial Performance driver and shows you how to get your own score.
Building Your Financial Model Key Startup Metrics David Ehrenberg
Does your financial model explain how your business really works? Give you clear insight into the financial health of your startup? Tell a story that inspires investor confidence and will help you to raise capital?
As Guy Kawasaki said so well in his entrepreneurial bible Art of the Start, “the point of financial projections is to tell a story with numbers—a story about opportunity, resource requirements, market forces, growth, milestone achievements, and profits."
We discovered that there are these eight key drivers that drive up the value of a company. The Value Builder assessment gives you a score for each of those eight drivers. This paper gives you the detail behind the Financial Performance driver and shows you how to get your own score.
Building Your Financial Model Key Startup Metrics David Ehrenberg
Does your financial model explain how your business really works? Give you clear insight into the financial health of your startup? Tell a story that inspires investor confidence and will help you to raise capital?
As Guy Kawasaki said so well in his entrepreneurial bible Art of the Start, “the point of financial projections is to tell a story with numbers—a story about opportunity, resource requirements, market forces, growth, milestone achievements, and profits."
Cash carries utmost important same as a resource in company or business. So the process of managing& generating cash is called as cash-flow management.
A company or a business entity needs cash to meet its everyday operating expenses, asset purchase, marketing expenses etc. Sometimes, an unplanned cash flow management strategies lead to business failure. Cash-flow can be of two types both positive cash-flow and negative cash-flow. Positive cash-flow shows that the company has the cash to meet its obligations, which attracts investors but negative cash-flow shows the company has less cash to meet its daily obligations.
PEM Corporate Finance explains how identifying strategic value can optimise the success of an acquisition, help you justify the purchase to any funders, and increase the wealth you realise when you come to exit your business.
Startup Economics, Finance and Accounting 101Dan Nelson
A quick look into some of the necessary finance, accounting and economic needs for early stage startups. It is a short survey, and there is more to come on this really interesting space.
For more information, please contact Dan@techbrainstorm.com
PEM Corporate Finance sets out the three reasons why business owners / shareholders won't sell their business' - and suggest how to avoid the most common mistakes.
I often meet companies whose revenue is stalled and they wonder why. What many of them don't realize is that they're not spending enough money on Sales and Marketing. This slide deck looks at 5 important metrics for a software company. If you want a detailed set of metics, contact me as I've got a full set of industry metics in Excel.
Technology businesses Maximise Sale ValueMark Ostryn
Mark Ostryn, Director of Strategic Transactions in Sydney, Australia has developed a program that ensures mid-sized technology businesses sell for the highest possible value.
This entails three steps:
1. Assessing the current and potential market value of the business (Value Discovery)
2. Working in collaboration with technology industry experts to improve the value of their assets.
3. A sale process designed to stake out the most strategic buyers.
Are you dependent on the Rigid frameworks or on the Heroes in your Organisation to institutionalise KAM process?
1
Key Account Planning & Management needs strategic planning and thinking.
2
DemandFarm brings best flexible and configurable frameworks and make this process easy
3
Get introduced to a framework which is best of both Automated tools and Human intelligence
Recent stats say that 46% of sales people at established software companies fail to meet their quotas. In my experience, the problem isn't with the salespeople but with their quotas. Setting quotas and budgets is much easier if you can forecast revenue accurately. In fact if you get really good at it, think how much money you can make. So here are four methods to help you forecast revenue more accurately.
Procurement is a game changer. And do you have these skills to win?Kobster eShop Pvt Ltd
"It’s important to embrace new technology to stay on your toes. The procurement landscape is changing as technology advances and it’s the professionals who keep their finger on the pulse who get ahead" #procurementskills #eprocurement #b2b
Navisiontech Provides Performance Inventory Solution in San Francisco. It Maximize Your ROI With Our Performance Inventory For Your Microsoft NAV Systems.
The effective management of cash is one of the keys for a successful organization, seldom will these start-ups survive till the next round of funding. Above all, the investors would definitely look at the management capabilities before granting additional funds. As such, the stability of a start-up somewhat depends on the strength of cash flow, which is the lifeblood of any business.
When angels and venture capitalists started flooding the market with cash 20 years ago, people forgot that bootstrapping was the way most companies used to get started. Because it deserves to make a comeback as the best way to think about starting a company, I've shared here, my 4 rules for bootstrapping.
A two day training session for colleagues at Aimia, to introduce them to R. Topics covered included basics of R, I/O with R, data analysis and manipulation, and visualisation.
Cash carries utmost important same as a resource in company or business. So the process of managing& generating cash is called as cash-flow management.
A company or a business entity needs cash to meet its everyday operating expenses, asset purchase, marketing expenses etc. Sometimes, an unplanned cash flow management strategies lead to business failure. Cash-flow can be of two types both positive cash-flow and negative cash-flow. Positive cash-flow shows that the company has the cash to meet its obligations, which attracts investors but negative cash-flow shows the company has less cash to meet its daily obligations.
PEM Corporate Finance explains how identifying strategic value can optimise the success of an acquisition, help you justify the purchase to any funders, and increase the wealth you realise when you come to exit your business.
Startup Economics, Finance and Accounting 101Dan Nelson
A quick look into some of the necessary finance, accounting and economic needs for early stage startups. It is a short survey, and there is more to come on this really interesting space.
For more information, please contact Dan@techbrainstorm.com
PEM Corporate Finance sets out the three reasons why business owners / shareholders won't sell their business' - and suggest how to avoid the most common mistakes.
I often meet companies whose revenue is stalled and they wonder why. What many of them don't realize is that they're not spending enough money on Sales and Marketing. This slide deck looks at 5 important metrics for a software company. If you want a detailed set of metics, contact me as I've got a full set of industry metics in Excel.
Technology businesses Maximise Sale ValueMark Ostryn
Mark Ostryn, Director of Strategic Transactions in Sydney, Australia has developed a program that ensures mid-sized technology businesses sell for the highest possible value.
This entails three steps:
1. Assessing the current and potential market value of the business (Value Discovery)
2. Working in collaboration with technology industry experts to improve the value of their assets.
3. A sale process designed to stake out the most strategic buyers.
Are you dependent on the Rigid frameworks or on the Heroes in your Organisation to institutionalise KAM process?
1
Key Account Planning & Management needs strategic planning and thinking.
2
DemandFarm brings best flexible and configurable frameworks and make this process easy
3
Get introduced to a framework which is best of both Automated tools and Human intelligence
Recent stats say that 46% of sales people at established software companies fail to meet their quotas. In my experience, the problem isn't with the salespeople but with their quotas. Setting quotas and budgets is much easier if you can forecast revenue accurately. In fact if you get really good at it, think how much money you can make. So here are four methods to help you forecast revenue more accurately.
Procurement is a game changer. And do you have these skills to win?Kobster eShop Pvt Ltd
"It’s important to embrace new technology to stay on your toes. The procurement landscape is changing as technology advances and it’s the professionals who keep their finger on the pulse who get ahead" #procurementskills #eprocurement #b2b
Navisiontech Provides Performance Inventory Solution in San Francisco. It Maximize Your ROI With Our Performance Inventory For Your Microsoft NAV Systems.
The effective management of cash is one of the keys for a successful organization, seldom will these start-ups survive till the next round of funding. Above all, the investors would definitely look at the management capabilities before granting additional funds. As such, the stability of a start-up somewhat depends on the strength of cash flow, which is the lifeblood of any business.
When angels and venture capitalists started flooding the market with cash 20 years ago, people forgot that bootstrapping was the way most companies used to get started. Because it deserves to make a comeback as the best way to think about starting a company, I've shared here, my 4 rules for bootstrapping.
A two day training session for colleagues at Aimia, to introduce them to R. Topics covered included basics of R, I/O with R, data analysis and manipulation, and visualisation.
Role of Analytics in Delivering Health Information to help fight Cancer in Au...Deanna Kosaraju
Voices 2014
Role of Analytics in Delivering Health Information to help fight Cancer in Australia
Katerina Andronis,
Deloitte Consulting, Australia and Chandana Unnithan,
Deakin University, Australia
Building Blocks of a Knowledge Work Culture - NDC London 2016Doc Norton
Re-designed presentation on Autonomy, Connection, Excellence, and Diversity. This version shows a bit more about the management styles appropriate in different domains of complexity, connects knowledge work to Complicated and Complex, and then walks through the Building Blocks.
Hervé Frapsauce, président INSTITUT ESPRIT SERVICE :
La maturité relationnelle de l'entreprise est assurément sa richesse première, car elle seule est en capacité de créer des expériences clients et collaborateurs inoubliables dans notre société des nouveaux usages.
Paradoxe apparent à l'heure du tout digital et des Mr Robots conseillers de clientèle, je crois en la réinvention de la prise en compte de l'humain, dans toutes ses composantes, au sein des organisations. Loin d'opposer numérique et individu, il nous faut concilier ce qui peut l'être et trouver des champs de complémentarités. L'enchantement du client est à ce prix. En se projetant à 5 ans, au-delà de la métamorphose quasi sociologique que nous commençons à vivre, et que les avancées technologiques peuvent et vont amplifier, l'irruption massive des Millenials dans et surtout à côté des entreprises dites traditionnelles va nous faire du bien. Marqueurs de ces talents qui préfèreront vivre leur vie en mode start-up ou d'indépendant plutôt que de se perdre dans les organisations existantes, les Millenials vont bousculer les traditions sans forcément les remettre en cause, pour incarner la métamorphose évoquée ici.
Among the traits that distinguish a good team from a great team is their ability to innovate. Despite the rhetoric in favor of innovation, most organizations are stuck in an implementation mindset, stifling creativity, excellence, and the resultant innovation. The experimentation mindset frees us from self-imposed constraints, allowing us to continually learn and improve. In this session, we'll talk about how we learn as individuals and how we learn as organizations. We'll take a look at some examples of the experimentation mindset happening in the agile community today and we'll talk about how you can foster such a mindset in your own organization.
U.S. Breakfast Cereal Market. Analysis And Forecast to 2025IndexBox Marketing
IndexBox has just published its report: “U.S. Breakfast Cereal Market. Analysis And Forecast to 2025”.
The report provides an in-depth analysis of the U.S. breakfast cereal market. It presents the latest data of the market size and volume, domestic production, exports and imports, price dynamics and turnover in the industry. In addition, the report contains insightful information about the industry, including industry life cycle, business locations, productivity, employment and many other crucial aspects. The Company Profiles section contains relevant data on the major players in the industry.
For many organizations, key performance indicators (KPIs) are "basic" in name only and are tracked to meet compliance regulations or provide retrospective analysis. There is a need for smarter KPIs, says Michael Schrage, a visiting researcher at the MIT Initiative on the Digital Economy (IDE).
Performance measurement system for startups and scaling upBrowne & Mohan
what measures should startups and scaling up firms use to direct and align their multi-functional activities. In this paper, Browne & Mohan consultants present a comprehensive performance system that not only guides startups and scale ups, but bind several functions within the organization towards common objective.
A comprehensive Power point slide on Digital strategy and planning covering topics like Budget Forecasting, Data Visualization, Benchmarking, SWOT Analysis, KPIs and Analytics.
What is the function of the performance analyst by Luciano RuoccoLuciano Ruocco
A performance analyst primarily evaluates performance and outcomes, most frequently for corporations, though there are several alternative responsibilities concerned. Performance analysts build relationships, write reports and create displays. Additionally, they need to possess sturdy analytical and communication skills to try and do the duty effectively.
Basic e-commerce metrics that you need to focus on first!CedCommerce
Running an e-commerce business and not keeping the records, it is like walking on a street with eyes closed. Get to know the basic metrics you need to track for your e-commerce business.
Have a look at some basic e-commerce metrics that you need to pay heed to. Have a look!
Use Sales Data to Develop a Customer-Centric Sales ApproachAnalytics8
We share:
- The 5 areas you should analyze to develop a customer-centric sales approach and set your sales team up for success
- How to move from sales reporting in your CRM to a more automated solution
- Practical advice on how to get started, using traditional and advanced analytics techniques
Show drafts
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Empowering the Data Analytics Ecosystem: A Laser Focus on Value
The data analytics ecosystem thrives when every component functions at its peak, unlocking the true potential of data. Here's a laser focus on key areas for an empowered ecosystem:
1. Democratize Access, Not Data:
Granular Access Controls: Provide users with self-service tools tailored to their specific needs, preventing data overload and misuse.
Data Catalogs: Implement robust data catalogs for easy discovery and understanding of available data sources.
2. Foster Collaboration with Clear Roles:
Data Mesh Architecture: Break down data silos by creating a distributed data ownership model with clear ownership and responsibilities.
Collaborative Workspaces: Utilize interactive platforms where data scientists, analysts, and domain experts can work seamlessly together.
3. Leverage Advanced Analytics Strategically:
AI-powered Automation: Automate repetitive tasks like data cleaning and feature engineering, freeing up data talent for higher-level analysis.
Right-Tool Selection: Strategically choose the most effective advanced analytics techniques (e.g., AI, ML) based on specific business problems.
4. Prioritize Data Quality with Automation:
Automated Data Validation: Implement automated data quality checks to identify and rectify errors at the source, minimizing downstream issues.
Data Lineage Tracking: Track the flow of data throughout the ecosystem, ensuring transparency and facilitating root cause analysis for errors.
5. Cultivate a Data-Driven Mindset:
Metrics-Driven Performance Management: Align KPIs and performance metrics with data-driven insights to ensure actionable decision making.
Data Storytelling Workshops: Equip stakeholders with the skills to translate complex data findings into compelling narratives that drive action.
Benefits of a Precise Ecosystem:
Sharpened Focus: Precise access and clear roles ensure everyone works with the most relevant data, maximizing efficiency.
Actionable Insights: Strategic analytics and automated quality checks lead to more reliable and actionable data insights.
Continuous Improvement: Data-driven performance management fosters a culture of learning and continuous improvement.
Sustainable Growth: Empowered by data, organizations can make informed decisions to drive sustainable growth and innovation.
By focusing on these precise actions, organizations can create an empowered data analytics ecosystem that delivers real value by driving data-driven decisions and maximizing the return on their data investment.
Techniques to optimize the pagerank algorithm usually fall in two categories. One is to try reducing the work per iteration, and the other is to try reducing the number of iterations. These goals are often at odds with one another. Skipping computation on vertices which have already converged has the potential to save iteration time. Skipping in-identical vertices, with the same in-links, helps reduce duplicate computations and thus could help reduce iteration time. Road networks often have chains which can be short-circuited before pagerank computation to improve performance. Final ranks of chain nodes can be easily calculated. This could reduce both the iteration time, and the number of iterations. If a graph has no dangling nodes, pagerank of each strongly connected component can be computed in topological order. This could help reduce the iteration time, no. of iterations, and also enable multi-iteration concurrency in pagerank computation. The combination of all of the above methods is the STICD algorithm. [sticd] For dynamic graphs, unchanged components whose ranks are unaffected can be skipped altogether.
Adjusting primitives for graph : SHORT REPORT / NOTESSubhajit Sahu
Graph algorithms, like PageRank Compressed Sparse Row (CSR) is an adjacency-list based graph representation that is
Multiply with different modes (map)
1. Performance of sequential execution based vs OpenMP based vector multiply.
2. Comparing various launch configs for CUDA based vector multiply.
Sum with different storage types (reduce)
1. Performance of vector element sum using float vs bfloat16 as the storage type.
Sum with different modes (reduce)
1. Performance of sequential execution based vs OpenMP based vector element sum.
2. Performance of memcpy vs in-place based CUDA based vector element sum.
3. Comparing various launch configs for CUDA based vector element sum (memcpy).
4. Comparing various launch configs for CUDA based vector element sum (in-place).
Sum with in-place strategies of CUDA mode (reduce)
1. Comparing various launch configs for CUDA based vector element sum (in-place).
Opendatabay - Open Data Marketplace.pptxOpendatabay
Opendatabay.com unlocks the power of data for everyone. Open Data Marketplace fosters a collaborative hub for data enthusiasts to explore, share, and contribute to a vast collection of datasets.
First ever open hub for data enthusiasts to collaborate and innovate. A platform to explore, share, and contribute to a vast collection of datasets. Through robust quality control and innovative technologies like blockchain verification, opendatabay ensures the authenticity and reliability of datasets, empowering users to make data-driven decisions with confidence. Leverage cutting-edge AI technologies to enhance the data exploration, analysis, and discovery experience.
From intelligent search and recommendations to automated data productisation and quotation, Opendatabay AI-driven features streamline the data workflow. Finding the data you need shouldn't be a complex. Opendatabay simplifies the data acquisition process with an intuitive interface and robust search tools. Effortlessly explore, discover, and access the data you need, allowing you to focus on extracting valuable insights. Opendatabay breaks new ground with a dedicated, AI-generated, synthetic datasets.
Leverage these privacy-preserving datasets for training and testing AI models without compromising sensitive information. Opendatabay prioritizes transparency by providing detailed metadata, provenance information, and usage guidelines for each dataset, ensuring users have a comprehensive understanding of the data they're working with. By leveraging a powerful combination of distributed ledger technology and rigorous third-party audits Opendatabay ensures the authenticity and reliability of every dataset. Security is at the core of Opendatabay. Marketplace implements stringent security measures, including encryption, access controls, and regular vulnerability assessments, to safeguard your data and protect your privacy.
StarCompliance is a leading firm specializing in the recovery of stolen cryptocurrency. Our comprehensive services are designed to assist individuals and organizations in navigating the complex process of fraud reporting, investigation, and fund recovery. We combine cutting-edge technology with expert legal support to provide a robust solution for victims of crypto theft.
Our Services Include:
Reporting to Tracking Authorities:
We immediately notify all relevant centralized exchanges (CEX), decentralized exchanges (DEX), and wallet providers about the stolen cryptocurrency. This ensures that the stolen assets are flagged as scam transactions, making it impossible for the thief to use them.
Assistance with Filing Police Reports:
We guide you through the process of filing a valid police report. Our support team provides detailed instructions on which police department to contact and helps you complete the necessary paperwork within the critical 72-hour window.
Launching the Refund Process:
Our team of experienced lawyers can initiate lawsuits on your behalf and represent you in various jurisdictions around the world. They work diligently to recover your stolen funds and ensure that justice is served.
At StarCompliance, we understand the urgency and stress involved in dealing with cryptocurrency theft. Our dedicated team works quickly and efficiently to provide you with the support and expertise needed to recover your assets. Trust us to be your partner in navigating the complexities of the crypto world and safeguarding your investments.
The affect of service quality and online reviews on customer loyalty in the E...
Six Analytics Everyone Should Know - How to turn Financial Data into Insights
1. How to turn Financial Data into
Insights
Six Analytics Everyone
Should Know
by Bernard Marr
Created by: Gerry Carranza
2. Financial Analytics help business understand current and past
performance, predict future performance and make smarter decisions.
In today’s data-filled world, analytics is an essential part
of staying competitive.
• Predictive Sales Analytics
• Customer Profitability Analytics
• Product Profitability Analytics
• Cash Flow Analytics
• Value Driver Analytics
• Shareholder Value Analytics
3. Predictive Sales Analytics
Sales analytics involves figuring out how
successful your sales predictions in the future
Tip: Predicting future sales is always helped by detailed and thorough sales data from the past
so keep accurate records.
Predictive sales analytics is an extremely useful tool for planning and peace of mind, helping you manage
the peaks and troughs of your business. For example, many businesses experience more and less sales
at certain times of the year. If you know that year on year you make fewer sales in July then you can
encourage staff to take holiday then and stay calm when sales drop in that period.
• Looking for trends in past data.
• Using predictive techniques like correlation
analysis.
4. Customer Profitability Analytics
Tip: The biggest danger with customer profitability analytics is when you don’t analyze a customer’s fill lifetime
value. It is important to focus on a customer’s cumulative value to your business.
Shoot the dogs and ride the rockets!
It’s important to differentiate between the customers that make you money and the customers that lose
you money. Customers profitability usually falls within the 80/20 rule, whereby 20% of your customers
account for 80% of your customers account for 80% of your profit, and 20% of your customers account for
80% of your customer-related-costs. Knowing which is which important.
5. Product Profitability Analytics
Tip: Watch out for loss leaders. Some products may lose you money but their purchase leads
on to more profitable purchases (think of a razor and expensive replacement blades).
Product profitability analytics is a way of discovering profitability by individual product, rather than looking
at the business as a whole. To do this you need to assess each of the product and its costs individually.
Admittedly, this can be tricky because your products may well share production processes or cost bases.
Therefore, you need to find a reliable and fair way to apportion costs to your various products.
Product profitability analytics helps businesses uncover profitability insights across the product range so
better decisions are made and profits is protected and grown over time. For example, if you discover that
one product makes more profit than all the others then you may want to promote that product more heavily.
Revenue $
Cost $
6. Cash Flow Analytics
Tip: When trying to predict future cash flow based on past data, it’s important to ensure
you are making the right assumptions. Scenario analysis can help with this.
• Knowing how money is moving in and out of
your business is essential for gauging the
health of your business. Cash flow analytics
involves using retrospective or real-time
indicators such as the Cash Conversion
Cycle and Working Capital Ratio. You can
also use tools like regression analysis to
predict future cash flow.
• On top of helping you manage cash flow
and making sure enough cash to keep the
component turning, cash flow analytics
support a variety of corporate functions.
For example, analytics software can help
accounts receivable personnel to increase
cash flow by prioritizing which customers
are contracted by collection staff and
when.
7. Value Driver Analytics
Tip: You must properly identify your value drivers and be really clear
about what it is you are trying to achieve strategically.
• Most businesses have a sense of where
they are heading and what they are trying
are achieve. Often these goals are
formalize on a strategy map that identifies
the value drivers in the business. These
value drivers are the key levers that the
business needs to pull in order to meet its
strategic objectives. Value driver analytics is
the assessment of these levers to ensure
actually deliver the expected outcome.
• Value drivers are often based on
assumptions which need to be tested to
check they are correct. For example, you
may use price as one of your drivers and
assume that price influences sales and
revenue, but you need to test that
hypothesis so you can establish if you are
right or not.
Drivers
8. Shareholder Value Analytics
Tip: This metric needs to be tempered with additional customer-based analysis to ensure
that the shareholder value is not occurring at the expense of customer value.
• The results and interpretation of the results
by investors, analysts and the media will
determine how successful your business is
on the stock market. Shareholder value
analytics is a calculation of the value of a
company made by looking at the returns the
business provides to its stakeholders. It
effectively measures the financial
consequences of strategy and assesses
how much value the business’s strategy is
actually delivering to the shareholders.
• Shareholder value analytics should be
used frequently alongside profit and
revenue analytics. To measure
shareholder value analytics, you can use
a metric called Economic Value Added
(EVA). This calculates the profit of a
business when the cost of equity finance
has been removed.
Economic Value Added is a measure of
economic profit. It is calculated as the difference
between the Net Operating Profit After Tax and
the cost of financing the firm’s Capital.
EVA = NoPAT – Capital x Cost of Capital
NOPAT
______
Net
Operating
Profit After
Tax
Capital Charge
___________
Capital
Invested X
WACC
EVA
Weighted Average Cost of Capital
Editor's Notes
In today’s data-filled world, analytics is an essential part of staying competitive. Financial Analytics help businesses understand current and past performance, predict future performance and make smarter decisions. Let’s look at some of the key financial analytics that any business. Regardless of size, should be using.
Sales revenue is the lifeblood of any business so knowing how much you can expect to receive has important tactical and strategic implications. Predictive Sales analytics involves figuring out how successful your sales predictions in the future. There are many ways to predict sales, such as looking for trends in past data or using predictive techniques like correlation analysis.
Predictive sales analytics is an extremely useful tool for planning and peace of mind, helping you manage the peaks and troughs of your business. For example, many businesses experience more and less sales at certain times of the year. If you know that year on year you make fewer sales in July then you can encourage staff to take holiday then and stay calm when sales drop in that period.
Tip: Predicting future sales is always helped by detailed and thorough sales data from the past so keep accurate records.
It’s important to differentiate between the customers that make you money and the customers that lose you money. Customers profitability usually falls within the 80/20 rule, whereby 20% of your customers account for 80% of your customers account for 80% of your profit, and 20% of your customers account for 80% of your customer-related-costs. Knowing which is which important.
By understanding the profitability of certain groups of customers you can also analyze each group and extract useful insights. For example, you may discover that your very best customers made their first purchase from particular advertisement in a particular magazine. That knowledge can help direct your future marketing efforts.
Tip: The biggest danger with customer profitability analytics is when you don’t analyze a customer’s fill lifetime value. It is important to focus on a customer’s cumulative value to your business.
In order to stay competitive, businesses need to know where money is being made and lost. Product profitability analytics is a way of discovering profitability by individual product, rather than looking at the business as a whole. To do this you need to assess each of the product and its costs individually. Admittedly, this can be tricky because your products may well share production processes or cost bases. Therefore, you need to find a reliable and fair way to apportion costs to your various products.
Product profitability analytics helps businesses uncover profitability insights across the product range so better decisions are made and profits is protected and grown over time. For example, if you discover that one product makes more profit than all the others then you may want to promote that product more heavily.
Tip: Watch out for loss leaders. Some products may lose you money but their purchase leads on to more profitable purchases (think of a razor and expensive replacement blades).
The day-to-day running of a business requires a certain amount of cash to keep the lights on, wages paid, etc. Knowing how money is moving in and out of your business is essential for gauging the health of your business. Cash flow analytics involves using retrospective or real-time indicators such as the Cash Conversion Cycle and Working Capital Ratio. You can also use tools like regression analysis to predict future cash flow.
On top of helping you manage cash flow and making sure you have enough cash to keep the cogs turning, cash flow analytics can also support a variety of corporate functions. For example, analytics software can help accounts receivable personnel to increase cash flow by prioritizing which customers are contracted by collection staff and when.
Tip: When trying to predict future cash flow based on past data, it’s important to ensure you are making the right assumptions. Scenario analysis can help with this.
Most businesses have a sense of where they are heading and what they are trying to achieve. Often these goals are formalize on a strategy map that identifies the value drivers in the business. These value drivers are the key levers that the business needs to pull in order to meet its strategic objectives. Value driver analytics is the assessment of these levers to ensure actually deliver the expected outcome.
Value drivers are often based on assumptions which need to be tested to check they are correct. For example, you may use price as one of your drivers and assume that price influences sales and revenue, but you need to test that hypothesis so you can establish if you are right or not.
Tip: You must properly identify your value drivers and be really clear about what it is you are trying to achieve strategically.
The results and interpretation of the results by investors, analysts and the media will determine how successful your business is on the stock market. Shareholder value analytics is a calculation of the value of a company made by looking at the returns the business provides to its stakeholders. It effectively measures the financial consequences of strategy and assesses how much value the business’s strategy is actually delivering to the shareholders.
Shareholder value analytics should be used frequently alongside profit and revenue analytics. To measure shareholder value analytics, you can use a metric called Economic Value Added (EVA). This calculates the profit of a business when the cost of equity finance has been removed.
Tip: This metric needs to be tempered with additional customer-based analysis to ensure that the shareholder value is not occurring at the expense of customer value.
In corporate finance, Economic Value Added (EVA) is an estimate of a firm's economic profit, or the value created in excess of the required return of the company's shareholders. Quite simply, EVA is the net profit less the opportunity cost of the firm's capital.
Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds and any other long-term debt, are included in a WACC calculation.