Financial Intelligence
Analyse management accounting information to improve business profitability by identifying revenue, cost and profitability optimisation opportunities or risks.
Financial Analytics
Pricing Optimisation
Financial Leakage Reduction
Financial Intelligence
Financial Analytics
Business Impact
- Gain an understanding of the contributors to your business’s costs in order to identify which activities, products or customers are hindering or increasing your profitability, and develop action plans based on this information.
Our Approach
- We use time and motion studies and financial modelling to estimate costs at various business activity levels, which then apply to products and roll-up into customer contributions.
- Deep dive into financial records to identify trends, variances, concerns and opportunities in order to mitigate risks and exploit opportunities.
- All company expenses should have a contribution to the betterment of the business and financial analytics allows us to identify if this does occur.
- Financial analytics is a broad term with multiple levels of introspection, all of which share the overarching purpose of ensuring that business funds are effectively and efficiently utilised and allocated.
- All financial reports are considered in financial analysis - it can be as simple as an income statement and the underlying chart of accounts.
- Understanding the allocation of all expenses allows us to reduce unnecessary expenses or reallocate expenses to efficient or revenue generating areas of the business.
Financial Intelligence
Pricing Optimisation
Business Impact
- Maximise input and gross margins by optimising your pricing strategy at a holistic, category and product level.
- Balance the trade-offs of increasing volume vs. maximising profitability.
Our Approach
- We utilise a value-based pricing methodology to determine the ideal product price points as well as holistic and category mix of price points to maximise margins while not sacrificing overall volumes or customer numbers.
- The approach uses both existing product volumes as well as market perceptions on willingness to pay to arrive at an optimal mix of volume drivers, market competitors and margin builders.
- An appropriate and accurate pricing strategy is imperative to avoiding retail pricing risks, i.e. setting prices either too high or too low.
- The right pricing strategy allows for market share expansion while ensuring active margin management if employed successfully.
- We utilise a derived value pricing approach that uses statistical modelling to determine category importance, combined with competitor benchmarking to optimise value perception while increasing input margins.
Financial Intelligence
Financial Leakage Reduction
Business Impact
- Stop losing revenue due to process oversights and lack of contract or SLA transparency.
Our Approach
- We analyse your agreements and processes from negotiation to invoicing and payment to ensure that no revenue is lost due to process gaps or lack of transparency.
- Financial leakage refers to the variance in money expected to flow into your business and the money actually received, or the expected payments from your business against the payments actually made.
- This variance occurs due to inefficient business processes or the lack of process automation.
- It can also be a function of ad-hoc business agreements, a lack of visibility or understanding of agreements, or non-existence of agreements.
- The reduction in profitability due to leakage can be significant, but there are often simple solutions to rectify and reduce the leakage.