If you have read our page on SAS Activity-Based Management, you know that traditional financial reports can hide the destruction of up to 400 percent of the figure you publish as profit. If you are in the not-for-profit sector, think of it in terms of activities reducing the value of monies invested.
An ABM model traces cost as it is assigned to various activities. As a management tool, the solution is designed for flexibility, arriving at more granular costs and showing how or why cost fluctuates by customer segment, channel or product. While that may work for some smaller organizations, performance may degrade rapidly in medium to large organizations because of the sheer volume of transactions and the need to track those costs to each and every unique transaction.
Benefits
SAS Profitability Management was designed to focus on assigning cost to large volumes of transactions – billions in minutes, not hours. It can be used in three ways:
- As a precursor to ABM. SAS Profitability Management allows a cost accountant to create a robust assignment model in a point-and-click environment quickly and far more accurately than traditional allocation engines. Once the rules are set up, allocation is fast and easy. The results can be used to more accurately identify clusters of customer behavior as priority segments for improvement.
- To speed up budgeting and reporting. Results can be bulk loaded into departmental budgeting and reporting systems, reducing the budget cycle and enabling a greater level of detail for planning and reporting.
- As a deeper dive from ABM. SAS Activity-Based Management models can be imported for the sophistication of the ABM model combined with the speed and capabilities of SAS Profitability Management. Instead of running your ABM model monthly or quarterly, you’ll have the flexibility to run profit reports daily or weekly to see exactly how changes in your operating environment affect cost and profit by transaction.
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Features
- Drillable, customizable reporting. Web reporting interface generates fully customizable reports showing revenue, cost contributions, total profit and other value categories in the standard vertical format used by financial systems.
- Individual or multiple behavior assignments. Assignment rules can match a single transaction to both single and multiple behaviors and track the values uniquely associated with each one.
- Flexible driver rules. Assigned values can be calculated using either unit values or total values.
- Model build via import. Entire models can be built based on tables that can be registered into the SAS Metadata Server. You can also use multiple formats from multiple data sources to build tables.
- Multiple application support. Reporting and analysis by all SAS solutions and analytic products, as well as many third-party products, is available through tables output and registered in the SAS Metadata Server.
- Dimension table management. Unlimited dimensions from virtually any data source can be stored for use in reporting and assignment rules.
How SAS® is different
SAS Profitability Management builds on our experience of implementing SAS Activity-Based Management at more than 750 customer sites. We strive to listen, learn and then develop innovative solutions that create value for our customers.
SAS Profitability Management is based on more than 30 years of experience describing with statistical accuracy how and why behaviors influence outcomes.
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Industries
Activity-Based Management
