Profit Velocity Solutions’ PV Accelerator is an analytic application designed to enable capital-intensive companies to consistently achieve substantially wider margins and higher return on assets (ROA). Companies in industries such as specialty chemicals, building materials, integrated steel mills and silicon chip fabrication (to name just four) routinely fail to make the right decisions about pricing, production and sales management because they use analytic methods that, from an economic perspective, present a distorted measure of profitability. Profit Velocity’s approach is to use profit contribution per unit of time as the core principle for driving decisions about production, pricing and CRM-related issues, including compensation-, customer- and account management.
Topics: Performance Management, Sales Performance, Supply Chain Performance, PV Accelerator, sales incentives, strategy, Operational Performance, Analytics, Business Analytics, Business Performance, Cloud Computing, Financial Performance, pricing, incentive management, Price optimization, Profit Velocity, Profitability, Software, S&OP
Doing one’s homework is vital in buying business software. However, unless you’re replacing a relatively simple application, it’s hard to know exactly what to evaluate. Indeed, if people in a company given this task don’t have experience in using a specific type of business application or don’t understand how new or improved functionality will help execute business processes better, they may do a poor job of assessing the available alternatives. Third-party consultants may be helpful, but their prejudices and familiarity with a vendor’s products may cloud their objectivity. In the end, a buyer might agree with their point of view, but this agreement should be an informed decision.
Topics: Performance Management, Sales Performance, Zilliant, Model N, Navetti, Nomis Solutions, process automation, PROS Pricing, sales incentives, Servigistics, Signal Demand, strategy, Operational Performance, Analytics, Business Analytics, Business Performance, Customer & Contact Center, Financial Performance, Oracle, pricing, Vendavo, incentive management, patent, Price optimization, Profitability, Software, Vistaar Technologies
As its name suggests, demand-based pricing is a method that uses the buyer’s demand, based on an estimate of a good’s or service’s perceived value to the buyer, as the central element in setting price. Pricing strategies are most important because they can have a disproportionate impact (positive and negative) on a company’s bottom line. Managing prices has always been an activity of keen interest, but it has become even more so over the past decade as a result of the constrained pricing environment.
Topics: Performance Management, Sales Performance, sales incentives, strategy, Operational Performance, Analytics, Business Analytics, Business Performance, Financial Performance, pricing, incentive management, Price optimization, Profitability, Software
Two software applications I follow, price and revenue optimization (PRO) and sales compensation and incentives, can be highly complementary when used together. Unfortunately, since they typically are developed and sold by different kinds of software vendors, scant attention has been paid to the value of using them in tandem. I advise companies that have adopted a PRO strategy to use an incentive management application also to support and reinforce their optimization efforts. It is also part of our research agenda and education on sales for 2011 and beyond.
Topics: Predictive Analytics, Sales Performance, revenue optimization, sales management, Operational Performance, Business Analytics, Business Performance, Financial Performance, Workforce Performance, pricing, incentive management, Price optimization, Profitability