Enterprise Performance Management and
Business Intelligence Edition
Oracle Corp
April 2011 Stay Connected: TwitterFacebookLinkdInYouTube
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Going Surgical: Cost and Profit Management in the Wake of the Recent Downturn

In the wake of the recent economic downturn, businesses across all industries are maintaining a much sharper focus on cost and profitability management.

"But instead of the aggressive cost-cutting required when top-line revenues were flat or shrinking, organizations are now taking a much more 'surgical' approach to cost and profit management," says John O'Rourke, vice president of product marketing, Oracle.

Beyond Summary-Level Reporting
Such an approach requires accurate allocation of both costs and revenues by individual product lines, services, customer segments, locations, channels, and other lines of business.

"Only then can you make informed decisions about which products or services to invest in and which to retire, how to price products or services for different customer segments, and where to focus your marketing and customer service resources," explains O'Rourke.

To unlock deeper insight into the source of profits and losses, Oracle Hyperion Profitability and Cost Management provides a complete understanding of all revenue and cost values. This is possible thanks to a flexible allocations platform that supports activity-based costing, time estimation, and other methods.

In addition, traceability maps and audit trail capabilities provide new levels of transparency, which in turn provide greater confidence in the analysis and the reported results.

Finally, results from Oracle Hyperion Profitability and Cost Management can be easily shared with Oracle Hyperion Planning and other enterprise performance management applications.

Beyond Manufacturing and Retail
Early adopters of cost and profit management practices include financial services, consumer packaged goods, retail, and manufacturing organizations. But now, according to O'Rourke, a slew of new industries are aggressively joining the fray, including
  • Telecommunications companies—to address a need to identify the most cost-effective and/or profitable network areas, as well as gain deeper insight into product and customer segments to justify billing rates
  • Health insurers—to gain a deeper and more accurate understanding of member segments and plan profitability
  • Public sector organizations—to achieve increased visibility into costs and shared services usage in the face of new performance reporting requirements
To learn more, view a recent Webcast featuring U.K.-based financial services company Schroders Plc.

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