Products and Services - Enterprise profit improvement process

Enterprise profit improvement process

The profitability improvement process can be applied to all industries, but in particular, of course, to your manufacturing processes, which is part of the enterprise business model.

After the multi-dimensional business model has been built and validated, the performance measurement for the analyzed period is measured by the WhaleCurve of customers and products. It is like a fingerprint for your performance for the time analyzed. Based on the same multidimensional business model, the potentializer analysis clearly shows the various gaps and improvement potentials, which can be further understood for that particular part of the business model. Simulated process changes of the business model in a variables mode, for those values like drivers and variables you are in control of, will immediately show the changes and improved performance. This process can be further enhanced by using our global search optimization tool. With this we are finding the optimum for the processes under consideration. The optimum are found by maximizing profit subject to capacity and other constraints.

Once the best feasible process change has been found and agreed upon, the new enterprise multi-dimensional business model for the new future period can be run and one can depict the new performance measure by the WhaleCurve. As any process changes goes along with uncertainty of assumptions, a Monte Carlo analysis run is advised. It will provide you with further confidence showing the mean, upper and lower confidence interval for the costs, revenues, profits for that particular part. The new model for the new future period should show less profit erosion and improved dependencies on customers.

The image provides an overview of this profitability improvement process.