Principles of our profitability models:
Our profitability models achieve the lowest levels of segmentation thanks to powerful allocation methodologies. Hence, any analysis that the business requires such as profitability by certain customer and /or product, by region and segment can be performed.
Operating expenses allocation
Operating Expenses allocation is the first main component of a company efficiency and profitability.
Depending on the allocation rules and policies a profit center, customer or product could be more or less profitable.
Operating expenses should be allocated to the lowest level of segregation. Our models include complex allocation calculations so the methodologies are self-explanatory for the business divisions and reflect the business reality.
Process and data reliability
Analysts should not waist time on analyzing if numbers are correct or not, but on analyzing information for the business empowering. Every model needs maintenance from the business, such as cost allocation rates or drivers, risk management weights, metadata categorization etc. Our applications automatically verify and alert based on validation algorithms, that the models are properly maintained to always assure reliability and robustness that any analyst needs. Our models always incorporate reconciliations against the General Ledger measuring data accuracy.
Risk adjusting methodologies
Our profitability modeling can include operational, credit and market risk models; making sure the risk is properly managed and leveraged in the company.
Technology independence
Our models are designed to work with the major relational databases and BI software available in the market so companies can leverage of the software already purchased.