By Joe DeSiena, President Consulting Services
The goal of Revenue Management is to improve cash flows by improving key revenue impacting processes, reports and systems interfaces. Solutions are not always found in ERP systems which tend to focus on expense-related processes rather than the end-to-end quote-to-cash processes.
Revenue Management involves the entire revenue cycle in the Enterprise including maintenance revenue flows, revenue reporting and analysis, revenue allocation and recognition, contract management and billing.
Why Revenue Management?
Increases in government regulations (FASB, SEC, Sarbanes-Oxley Act), the economy and the disappointments of massive ERP solutions have led companies to focus on managing the flow of revenues as a way to improve the bottom line. In many corporations, the financial processes do not match to IT solutions resulting in inefficient workarounds using spreadsheets and manual tools. Moreover, poor revenue management processes negatively impact companies in several ways:
Poor Revenue Management Processes
- Missed Billing Due Dates
- Elapsed Maintenance Contracts
- Poor Customer Installed Base Management
Impacts to Companies
- Inaccurate Revenue Reporting (Misstatement of Revenues)
- Decreased Cash Flow-(Missed Billing)
- Inefficient Manual Work around Processes
The Best Approach
Identify the most effective and least costly solution to revenue shortfalls whether it is an improved revenue process, systems interface or data flow. Develop an approach to recover revenue lost in poor data quality or inefficient processes.
Identify and create effective solutions to resolve Revenue Management issues. Determine the best way to replace disparate spreadsheets, redundant data entry, weak reporting and other manual legacy processes to more effectively track and manage revenue streams to and from customers and suppliers. “Close the loop” between critical business processes and functions across the Enterprise and create visible audit trails for Revenue flows.
To find out more about Bardess Group and how its Revenue Management services can help you, contact us now for a free consultation.
About the Author
Joe DeSiena is President of Consulting Services at Bardess Group, Ltd., a Management Consulting firm specializing in data revitalization, business process design, and information technology for services-related businesses. He is currently a board member of the Society for Information Management in New Jersey.
He is an experienced management consultant with over 20 years of professional experience assisting Fortune 500 clients in resolving business issues related to the Triangle Relationship between business data, processes and systems functions for services and sales organizations. More specifically, he has directed engagements in services marketing and delivery, business planning, data revitalization, data migration, process design and reengineering among others. He has shared his experience and insights in presentations before numerous senior client and association groups.
Joe DeSiena’s industry exposure includes data networking, telecommunications, manufacturing, pharmaceuticals, financial services, utilities, travel and entertainment among others. He has corporate management experience in major companies such as American Express, Chase, Bristol Meyers-Squibb, Coopers & Lybrand (PWC), Deloitte Touche, and Pan Am. Joe DeSiena is a graduate of the Stern School of Business at NYU with an MBA in Finance. He received his B.A. in Mathematics and Economics from the State University of New York at Stony Brook graduating Magna Cum Laude with Phi Beta Kappa honors.