View
305
Download
6
Category
Tags:
Preview:
DESCRIPTION
Effective pricing management solutions can help your company make better pricing decisions during your quote-to-bid process, to ensure profits margins are kept at its max. Talk to us to find out how..Let us share with you our experience in creating $38m/yr of business benefits for our customers in Asia
Citation preview
“Rapid Delivery of Business Value through
Pricing & Margin Management”
terence.chan@acceval-intl.com
Proprietary & Confidential to Acceval
Who Is Acceval ?
� Leading provider and pioneer in Asia Pacific for Pricing &
Margin Management Software for Business-to-Business
companies
� Created more than USD 38 million/yr worth of business
benefits to-date for our customers
� PriXLence™ is an Enterprise Class software developed based
on Pricing Best Practices from leading thought leaders such
Recipient of Singapore Infocomm
Award 2008 forBest Industrial
Application
on Pricing Best Practices from leading thought leaders such
as McKinsey and Co.
� Designed to give business users control in every step of the
Pricing Process from Segmentation to Deal Execution to Deal
Negotiation to Closure
� Pioneered by a team of consultants from world class
organizations (Accenture, Deloitte, SAP Consulting)
� Acceval’s Partners includes Accenture, IBM, HP, Singtel, and
other industry-specific consulting partners
� Founder is ex-Shell- 2 -
Proprietary & Confidential to Acceval
Best Customer ROI
Award
We have proven experience delivering “Pricing & Margin Management” capabilities across multiple industries within B2B environment
- 3 -
Pricing Management – An Enterprise wide Challenge
Reactive Pricing “Gut feel” ad-hoc pricing
No central price list
One Price fits All (lacking in segmentation)
Reactive Pricing “Gut feel” ad-hoc pricing
No central price list
One Price fits All (lacking in segmentation)
Error Prone Pricing ProcessUn-synchronized price list versions
Inability to disseminate and control pricing to employees causing inconsistent prices to
customers
Error Prone Pricing ProcessUn-synchronized price list versions
Inability to disseminate and control pricing to employees causing inconsistent prices to
customers
- 4 -
Proprietary & Confidential to Acceval
Ineffective Deal NegotiationLacking in updated information weakens a
negotiation and cause exposure to financial risk
Ineffective Deal NegotiationLacking in updated information weakens a
negotiation and cause exposure to financial risk
Disconnect from Enterprise Systems
Quote-to-Bid and Negotiation process disconnected from other functions/systems
Disconnect from Enterprise Systems
Quote-to-Bid and Negotiation process disconnected from other functions/systems
Enterprise wide ChallengeEnterprise wide Challenge
Pricing Management and its Importance
� It’s about arriving at the right Offer
Price taking into consideration
– Cost-to-Serve
– Customers
– Competition
� Pricing shows the most substantial
increase in Profits and yet the most
Busin
ess D
rivers
Mckinsey study shows that by
increasing 1% in all business drivers
increase in Profits and yet the most
underutilized profit lever
� A rich opportunity to improve the
bottom line not by cutting cost
� Control and creation of market
segments thru differentiated pricing
� With PriXLence, it means achieving all
these in one software
- 5 -
Proprietary & Confidential to Acceval
Busin
ess D
rivers
Source: Harvard Business Review, McKinsey “The Price Advantage”
Pricing Excellence is important in delivering superior business results
Pricing Transformation delivers significant business Benefits Case Study :- Chemicals (commodity and specialty)
8,000
10,000
12,000
14,000
8000
10000
12000
14000
Benefits significantly > 1% of Revenue / Year
US
$ / y
ear
(‘000)
US
$ (‘0
00)
Investment AttractivenessInvestment Attractiveness
Benefits and Investment Attractiveness for Pricing transformation initiativeActual
Acceval Client Case Study: Disguised Chemical Company
Business BenefitsBusiness Benefits
0
2,000
4,000
6,000
8,000
Price Optimization Price
Synchronization
Value Pricing Price
Performance
Analysis
Price ForecastingPrice Negotiation
& Control
Total Annual
Recurring
Benefits
One-time
Receivables
Reduction
0
2000
4000
6000
8000
> 1% of Revenue / Year
US
$ / y
ear
(‘000)
US
$ (‘0
00)
Q1
'06
Q3
'06
Q1
'07
Q3
'07
Q1
'08
Q3
'08
Q1
'09
Q3
'09
Q1
'10
Q3
'10
IRR > 40%
For company with annual revenue of US 1 Billion / year, recurring business benefit is more than 10 million / year
Proprietary & Confidential to Acceval- 6 -
Acceval creates Success for your business at your pace
Pricing & Margin Management(Foundation)
Price Optimisation(Advanced)
Valu
e C
reation ($)
Pricing & Margin Management / Optimisation Continuum
Deal Execution Pricing Analytics
� Reduce Unwarranted Discount / Inconsistent Pricing
Pricing Capabilities Continuum
Valu
e C
reation ($)
� Improve Pricing Policies & Cost to Serve
� Improve Business Mix
� Price based on Customer Value (Value Pricing)
� Optimise Bid Price / List Price
� “Optimise” Product / Service Offerings
Quick Win� Improve Negotiated
Price / Margin
� Enhance Price Differentiation (Segmented Pricing)
While Acceval covers the whole spectrum of pricing capabilities, most companies will start with Pricing & Margin Management areas
Proprietary & Confidential to Acceval
- 7 -
PriXLence™: Acceval’s flagship Pricing & Margin Management solution for Business To Business Industries
Deal Execution
(List Price / Policy Management, Quotation Management)
1
Pricing / Profitability 2
- 8 -
Proprietary & Confidential to Acceval
Pricing / Profitability Analysis, Segmentation, Competitive Intelligence
2
Value Pricing /Price Optimisation
3
Value Drivers Benefit Sources
� Improve Offer Price to Customer
� Achieve Better Negotiated Price / Margin
� Reduce Unnecessary Discounting
� Enhance contract compliance
Revenue Enhancement
Compelling Business Benefits : Typically 1-3% of Revenue / year
Company with 100 mil revenue / year ���� 1-3mil benefits / year
Value Proposition for Pricing Transformation enabled by PriXLence™
� Enhance contract compliance
� Improve Capture of Market Price Trend
Opportunities
� Improve Product / Customer / Channel /
Market Mix
� Reduce Costs To Serve, e.g.
– Supply Chain costs
– Customer Support / Service costs
– Channel costs
� Reduce Working Capital Requirements
(payment terms / inventory)
Enhancement
Cost Reduction
Working Capital
Reduction
Earnings After Capital Costs
Proprietary & Confidential to Acceval
- 9 -
Pricing Management solution enables your Pricing Strategy
Empower and Enable People Empower to quote and negotiate deals
Incentives to promote lower discounts, shorter payment terms
Empower and Enable People Empower to quote and negotiate deals
Incentives to promote lower discounts, shorter payment terms
Policies and ProcessesClear price setting/discount policies/rules
Clear approvals process/authority
Pricing done globally or in-country
Policies and ProcessesClear price setting/discount policies/rules
Clear approvals process/authority
Pricing done globally or in-country
- 10 -
Proprietary & Confidential to Acceval
AnalyzeConstant efforts to quantify each offering to
each target market
Co-Relation of Offer Prices /Volume
Co-Relation of Offer Prices/Market
AnalyzeConstant efforts to quantify each offering to
each target market
Co-Relation of Offer Prices /Volume
Co-Relation of Offer Prices/Market
Control and MeasurementsControls on undeserved discounts
Reviews of previous discounts
Control on Cost-to-Serve factors
Control and MeasurementsControls on undeserved discounts
Reviews of previous discounts
Control on Cost-to-Serve factors
Pricing Management SystemsPricing Management Systems
Recommended