Robert Kugel's Analyst Perspectives

Profit Velocity’s New Dimension in Managing Profitability

Posted by Robert Kugel on Feb 20, 2013 10:15:58 AM

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.

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Topics: Performance Management, Operational Performance Management (OPM), PV Accelerator, sales incentives, strategy, Analytics, Business Analytics, Cloud Computing, Business Performance Management (BPM), Financial Performance Management (FPM), pricing, Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), incentive management, Price optimization, Profit Velocity, Profitability, Software, S&OP

Patent Documents Useful for Buyers of Price Optimization Software

Posted by Robert Kugel on Nov 30, 2011 8:03:55 AM

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.

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Topics: Performance Management, Operational Performance Management (OPM), Zilliant, Model N, Navetti, Nomis Solutions, process automation, PROS Pricing, sales incentives, Servigistics, Signal Demand, strategy, Analytics, Business Analytics, Oracle, Business Performance Management (BPM), Customer Performance Management (CPM), Financial Performance Management (FPM), pricing, Sales Performance Management (SPM), Vendavo, incentive management, patent, Price optimization, Profitability, Software, Vistaar Technologies

Successful Price Optimization Has Multiple Dimensions

Posted by Robert Kugel on Oct 28, 2011 9:54:18 AM

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.

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Topics: Performance Management, Operational Performance Management (OPM), sales incentives, strategy, Analytics, Business Analytics, Business Performance Management (BPM), Financial Performance Management (FPM), pricing, Sales Performance Management (SPM), incentive management, Price optimization, Profitability, Software

Price Optimization and Sales Incentives Deliver Profitability

Posted by Robert Kugel on Jun 24, 2011 2:30:43 PM

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.

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Topics: Predictive Analytics, Operational Performance Management (OPM), revenue optimization, sales management, Business Analytics, Business Performance Management (BPM), Financial Performance Management (FPM), pricing, Sales Performance Management (SPM), Workforce Performance Management (WPM), incentive management, Price optimization, Profitability