Longview Solutions Adds Profitability Modeling and Optimization to its CPM Suite
Toronto, Canada– July 27, 2009 -- Longview Solutions, a leader in Corporate Performance Management software today announced the availability of Longview Profitability Analytics, a powerful profitability and cost management application. Longview Profitability Analytics is powered by Acorn Systems, Inc. flagship product – Acorn Performance Analyzer, and will be marketed and sold under the Longview brand as an extension of Longview's Performance Management Platform.
Longview Profitability Analytics is an enterprise-scale application that holistically measures the revenue, cost and net profitability of any dimension of a business, including customers, products, suppliers, channels, orders and transactions, to intelligently drive cost reduction and maximize profitable revenue growth. From a value perspective, a CFO study conducted by a Tier 1 consulting firm found that clients who focused on profitable growth and revenue initiatives rather than simple cost reductions saw as much as 5 to 15 percent of revenue improvement in net profitability. For example, a $4B Financial Services firm added $600M in annual profit improvement due to the new insight provided by profitability modelling and optimization, resulting in a $9B shareholder value improvement.
From a business perspective, there are many benefits to adding profitability management and optimization (PMO) to an existing performance management strategy. "Organizations need to look at the areas where they have the most pain and where they can get a quick return. Typically these are in the areas of budgeting, planning and forecasting and profitability modeling," says Nigel Rayner, Research Vice President at Gartner, Inc. "Very few organizations have a solution that lets them really understand the drivers of profitability by product, market segment, customer, etc. and can then bring that information into their planning process . This is what the CEO and management team need in order to make intelligent decisions that drive business value."
Longview Profitability Analytics is tightly integrated with Longview's CPM Suite that includes Planning, Budgeting, Forecasting, Consolidation, Management Reporting and Tax Provisioning. Benefits include:
- Better strategy formulation and execution through better understand of where and why customers are making and losing money.
- More accurate and robust planning through the addition of rich driver information including items such as resource capacity/utilization insight, and cost per activity/process insight.
- Advanced future costing and profitability analysis using dynamic planning data
- Expanded financial metrics, such as customer and segment profitability which can then be leveraged for metrics and scorecarding in any BI platform.
"Our 2009 BPM Pulse Survey results indicate that 61% of respondents consider profitability optimization more important today due to the current economic climate," reports John Colbert, Vice President, Research and Analysis at BPM Partners. "This is a logical extension to a performance management implementation – getting to the next level of profitability analysis, down to the SKU or transactional level. This gives companies the ability to make detailed operational adjustments to improve their performance at the client, product or sales channel level."
"After careful thought and consideration Longview determined that the most prudent way to deliver a robust analytical modeling engine to our customers was to leverage Acorn's PMO technology platform," said John Power, President of Longview Solutions. "Acorn's proven technology combined with its domain knowledge and expertise will give Longview customers the best of both worlds and a time to value ratio that is well documented by end users."
"We are pleased to enhance Longview's powerful Performance Management Platform with Acorn's profitability and cost management solution," said Chris D. Fraga, Chief Strategy Officer, Acorn. "With the addition of Acorn's rich and accurate profitability, cost, and driver insight to Longview's single repository of the financial truth, companies can make even more effective and profitable decisions in harmony across the enterprise - from the Board and management team to front-line operations resources."
To learn more about Longview Profitability Analytics register to attend our upcoming web seminar with Business Finance on July 30, 2009 entitled "How to Use CPM to Drive Profitability and Cost Optimization." Details can be found at www.longview.com/profitabilitywebcast About Longview Solutions
Longview Solutions provides corporate performance management (CPM) software that leading companies such as Trustmark, Time Warner, Home Depot, Ingersoll Rand, JC Penney, and GE Healthcare use to drive performance with speed, visibility and financial integrity. Since 1994, many of the world's most respected companies have been using our technology platform to create a single repository of financial truth from which statutory consolidation, management reporting, financial planning, modeling, analysis, budgeting, forecasting and tax reporting can be performed quickly and accurately, enterprise-wide. Longview is an Exact Software company headquartered in Toronto, Canada with additional offices in Philadelphia, Chicago (USA) and London (UK). For more information, visit www.longview.com About Acorn Systems
Acorn Systems provides companies with profitability and cost management solutions to drive better business decisions. Over the past 12 years, Acorn has delivered profit improvement results for Global 2000 companies in the Financial Services, Retail, Consumer Products, Manufacturing, Distribution, Logistics and Services sectors. Combining proprietary technology with proven methodology, Acorn reveals profit opportunities across the enterprise, including customers, channels, segments, products, vendors, and processes. Our unique approach enables clients to achieve results in a fraction of the time of traditional approaches, and to make continuous, fact-based decisions to improve their bottom line. www.acornsys.com
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