Business Metrics Model Development

 

Business Issue

The Client’s Support Services Group needed improved visibility into support costs and profitability for products, service products and top customers.

Solution

Bardess consultants analyzed the data for the customer care and parts provisioning systems to determine the population rate of key fields, accuracy of entitlement (compared to entitlement database) and validity of input Contract Numbers. Based on the accuracy of the data determined in the analyses, several options for determining the Product, Service Product and Customer profitability were explored. Metric Models were developed using methodologies that utilized customer care data to distribute Total Service Burden across Service Products and Top Customers, and utilized the distribution of products and services products in the Entitled Base to allocate the Total Service Burden across Service Products and Products.

 

Client Impact

The Product, Service Product and Top Customer Metric Models provided the Client with repeatable and flexible methods of allocating Total Service Revenue despite data issues which would render standard analysis methods inaccurate.

 

Revenue Backlog Cleanup and Revenue Recovery

 

Business Issue 

The Client estimated that they had a backlog of $20M in software products services revenue that they could not realize due to process incompatibilities and system issues resulting from an acquisition.

Solution

Through situation assessments and process audits, Bardess consultants quantified the amount of revenue for both Services and Products that was currently backlogged in the ERP ordering system. Additionally, we identified open-loops in the current processes that caused the situation. Our team addressed the immediate need to realize the backlogged revenue by quickly developing an order management and forecasting tool and related processes, as a short-term solution. This tool used extracted data from corporate ERP systems to create a central repository of the order data to allow the clients to manage both product and services orders easily, to forecast accurately, and recognize revenue on time.

 

Client Impact

The client was able to process the backlogged orders and realize $25 million in services revenue and an additional $40 million in product revenue.

 

Order Management Tracking and Forecasting Tool Development

 

Business Issue 

The Client had no automated facility to track the status of installation projects. Projects Managers were using manually intensive processes leveraging spreadsheets to track order and project phase information, providing no consolidation of project information to management.

Solution 

Bardess consultants audited the current Project Management processes and systems. Based on this analysis, the team developed a user-friendly, web-based, Order Management Tracking (OMT) system which tracked product, installation and professional services from different orders and tracked the status of installation and professional services at the detail level. The OMT system accomplished this by extracting line level data for multiple orders from corporate systems and consolidating this information for the project. The OMT system also provided Project Management detailed and summary revenue forecasting reports based on the order type, product type, region, customer level and projected completion date.

 

Client Impact

Implementation of the OMT system increased the Client’s efficiency by drastically reducing the amount of manual tasks required for project tracking and forecasting while increasing the accuracy and timeliness of installation and maintenance orders.