Robert Kugel's Analyst Perspectives

Profitability Management Conquers Inflationary Pressures

Posted by Robert Kugel on Oct 11, 2022 3:00:00 AM

A year ago, I wrote about how technology could be useful in an inflationary period, correctly anticipating the world we live in now. Responding effectively to changes in costs is always challenging, but even more so because of the choppy and chaotic nature of the current environment. Many organizations have a limited or no ability to raise prices, and are forced to find ways to minimize the impact of rising costs. And while it’s true that some organizations have a degree of pricing power, behind this generalization there is a more complex reality because this ability to raise prices often varies depending on specific products, customers and channels. Companies can best address the challenges of inflation by adopting a technique that Ventana Research calls “profitability management.”

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Topics: Office of Finance, Financial Performance Management, digital finance, Revenue Management, profitability management, Revenue Performance Management

Configure, Price and Quote Software Supports Profitability Management

Posted by Robert Kugel on Jan 7, 2022 3:00:00 AM

Pricing is an issue that almost every for-profit company confronts – and usually agonizes over. Chief financial officers must play a part in setting the strategic direction of pricing in their organization. They should not be involved in tactical pricing decisions because they are not close enough to markets and customers, but they should be part of the strategic design of pricing, especially as part of a profitability management effort, which I’ve discussed before.

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Topics: Office of Finance, Analytics, Financial Performance Management, Digital Commerce, Digital Business, Revenue Management, Sales Engagement