Profitability & Cost Management

ADI Strategies › Solutions › Profitability & Cost Management

Drive Profitability & Control Costs

Dollar_14297Profitability Analytics, also referred to as Profitability & Cost Management, has become a critical component in the framework of Enterprise Performance Management. Realizing the potential profitability and true costs of your products and/or services is necessary to improve performance; Incomplete or inaccurate information will lead to poor strategic decisions, as well as improper allocation of resources (both financial and people) to maximize the bottom line.  Furthermore, it is also necessary to align the true cost of a product and/or service with the drivers of costs

ADI’s Profitability Management solutions allow our clients to:

  • Align cost with revenue based on key business drivers to achieve optimal profitability at each business segment (Product, Customer, Channel, etc.)
  • Perform ‘what-if’ analysis to support decision-making during times of change, such as plant closure, reorganization, channel adjustments
  • Identify root causes and  optimize flexibility and agility to maneuver within an ever complex market
  • Discover and analyze the true impact of Shared Services
  • Improve customer service and react to changing customer demands (price, product mix, packaging, capacity) with a clear understanding of the impact on profitability
  • Discover and comprehend the underlying drivers of the business, including creating drill-down capability

Traditional profitability and cost analytics focused on past performance and  operated in a static environment with outdated data.  ADI’s integrated approach of delivering financial, planning and profitability information together to make better decisions about the future allows our clients to stay nimble.  Furthermore, we help our clients link strategic initiatives with operational plans and activities at the enterprise, business unit and departmental level  to ensure management has the right information to properly align resources and focus on areas that enhance performance.

Whether you are looking to utilize Activity-based costing (ABC), time estimation, driver based, or other profitability & costing methodology, ADI Strategies can guide you through the best approach for your business.  We can help you develop and deploy a Profitability Management solution that gives you the control, clarity and performance necessary to make better, more informed decisions in a complex and competitive global environment.

Oracle Hyperion Profitability and Cost Management (HPCM)

Oracle Hyperion Profitability and Cost Management (HPCM) software is a new performance management application that is part of Oracle’s enterprise performance management (EPM) system and provides actionable insights into costs and profitability. HPCM offers a flexible allocations platform for any activity-based costing method.  HPCM also supports cost and revenue management, provides traceability maps and audit trails, and is the only packaged profitability application that leverages Essbase.

ADI’s experience in HPCM can help you discover drivers of cost and profitability, empower your users with visibility and flexibility, and improve resource alignment. Plus, with our overall expertise in Hyperion Enterprise Performance Management applications, we can help you drive a single point of maintenance due to HPCM’s common foundation and overall integration capabilities.

Key Benefits of Oracle HPCM:

  • Identify sources and attributes of profitability with multidimensional analysis
  • Improve decisions with scenario modeling capabilities
  • Enable management best practices by leveraging profitability as a performance metric
  • Accurately allocate costs with a flexible allocation engine that supports any methodology
  • Gain confidence in cost allocations and revenue flows with graphical traceability maps
  • Quickly validate models with user-defined business rules
  • Improve resource alignment

Learn more about our clients here…
Watch a product demo here…

Contact us to learn more about controlling costs and improving profitability.