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Stern Stewart and Acorn Systems partner to Deliver Customer Value Analytics (CVA)Customer Profitability Analysis Made More Accurate through EVA and Consumption-Driven CostingNEW YORK and HOUSTON – May 17, 2004 – Stern Stewart, pioneer of its proprietary EVA® framework and Acorn Systems, the leader in profit and cost analytics, have partnered to deliver Customer Value Analytics (CVA), a solution that enables companies to measure and identify opportunities to increase the Economic Profit of their customers. Hundreds of companies worldwide now use EVA, and evidence shows that most of them significantly outperform other companies in their industries. Similarly, the insight generated from Acorn Systems’ Profitability Analysis and Improvement solution has enabled its customers to achieve breakthrough profit increases, with customers realizing an average net profit improvement of 2 percent of revenue. CVA is the first offering to combine the power of Stern Stewart’s EVA and Acorn Systems’ Consumption-Driven Costing. “Acorn Systems’ Consumption-Driven Costing is the most advanced and scalable profitability analytics package in the market today,” said G. Bennet Stewart III, Senior Partner, Stern Stewart. “With CVA companies can now accurately measure the economic profit of individual customers and customer segments and identify actions they can take to grow their most profitable customer base and to increase the profitability of under performing customers.” “Stern Stewart is a widely recognized and proven leader in helping companies improve shareholder value, which is why this partnership fits so well with Acorn Systems’ mission to improve companies’ profitability,” said Leland Putterman, CEO, Acorn Systems. “Stern Stewart’s EVA framework brings a consistent approach to measuring and setting financial performance goals and enabling managers to think like company owners. CVA will provide the fastest, most-material results to companies that already have established a Profit Culture and can provide a rallying point for those companies seeking to implement a Profit Culture.” Studies have shown that, in a typical company, the top 20% of customers account for as much as 300% of total profits while the bottom 20% combine to destroy 200% of profits. Acorn Systems’ Enterprise Profit System (EPS) uses an advanced Consumption-Driven Costing methodology, a significant improvement over traditional costing methodologies, to create a much more accurate measure of the profitability of customers, products, segments, transactions or any other cost driver a company would like to model, giving managers the information they need to make better decisions. Combining Stern Stewart’s expertise in measuring Economic Profit, EVA, with Acorn Systems’ advances in costing and technology produces a powerful and scalable tool that can accurately record transactional profitability. This profit and loss information can be quickly aggregated and applied to any facet of a company, such as its customers or products, in order to measure and identify opportunities to improve the Economic Value being created and destroyed with each transaction. About Stern Stewart About Acorn Systems, Inc. |
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