Wednesday, May 03, 2006

Opportunity in your existing data

Many companies miss a huge opportunity by ignoring their current enterprise data. Many times when preparing for a software implementation my clients and I find "artifacts" that management did not know about.

One client found that due to a number of acquisitions in their customer base, 90% of the orders came from 30% of the customers based on volume. When you consider ordering costs, returns, overhead, custom skus, and logistics they found that the other 70% of the clients were not adding value to the business! Looking at the same data from a Revenue viewpoint it was clear that they had to find a different way to serve those customers immediately.

The scary thing was that snr management did not know this was happening. They were fixated on making "better product" when their product was already very good.

This one discovery will help them push margins back where they should be.

Is there an opportunity for you to look at your business differently?

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