PROFITABILITY, COSTING & CHARGEBACKS
For many enterprises, understanding the true profitability and cost of products and services is not easy. Frequently the costs related to creating products and services are complex and involve long value chains of activities and shared services such as IT. Few enterprises get this right. With Magic Orange you can accurately model the complex provider-consumer relationships and allocate shared services costs using measurable and controllable drivers.
- Unlock cost optimization opportunities in your business and save costs.
- Empower business units to make smarter decisions concerning shared services usage.
- Increase profitability through more efficient use of shared service resources.
- Quick return on investment with fast and easy deployment process.
Who do we help?
Struggles to defend the true cost of shared services and measure asset utilization effectively
- Understand shared services spend
- Predict future shared services spend
- Find opportunities to run shared service departments more effectively
Experiences difficulty in allocating complex shared service costs
- Understand and manage the total cost of ownership (TCO) of shared products and services
- Create accurate budgets which can be explained
- Be empowered to show shared service spend and future requirements
Has an incomplete view of the allocated shared services costs.
- Be empowered to make smart decisions concerning the use of shared services
- Understand and address inefficient usage of shared services
- Receive a true profit margin for delivering services and products to market
What questions do we answer?
- What is the true cost of delivering a service to the business?
- How much spend is on innovation versus operational?
- Are existing investments being used efficiently
- Across which products and services is spend spread?
- How does spending on specific shared service resources compare with what was budgeted?
- Which areas within shared services are attracting too much or too little investment?
- How does the usage of shared services within the business affect the profit margin?
- Are shared services being used efficiently?
- What is the true cost of each revenue generating business unit?