pricing solution boost $38m/yr business benefits for our customers

10
“Rapid Delivery of Business Value through Pricing & Margin Management” [email protected] Proprietary & Confidential to Acceval

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Effective pricing management solutions can help your company make better pricing decisions during your quote-to-bid process, to ensure profits margins are kept at its max. Talk to us to find out how..Let us share with you our experience in creating $38m/yr of business benefits for our customers in Asia

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Page 1: Pricing solution boost $38m/yr business benefits for our customers

“Rapid Delivery of Business Value through

Pricing & Margin Management”

[email protected]

Proprietary & Confidential to Acceval

Page 2: Pricing solution boost $38m/yr business benefits for our customers

Who Is Acceval ?

� Leading provider and pioneer in Asia Pacific for Pricing &

Margin Management Software for Business-to-Business

companies

� Created more than USD 38 million/yr worth of business

benefits to-date for our customers

� PriXLence™ is an Enterprise Class software developed based

on Pricing Best Practices from leading thought leaders such

Recipient of Singapore Infocomm

Award 2008 forBest Industrial

Application

on Pricing Best Practices from leading thought leaders such

as McKinsey and Co.

� Designed to give business users control in every step of the

Pricing Process from Segmentation to Deal Execution to Deal

Negotiation to Closure

� Pioneered by a team of consultants from world class

organizations (Accenture, Deloitte, SAP Consulting)

� Acceval’s Partners includes Accenture, IBM, HP, Singtel, and

other industry-specific consulting partners

� Founder is ex-Shell- 2 -

Proprietary & Confidential to Acceval

Best Customer ROI

Award

Page 3: Pricing solution boost $38m/yr business benefits for our customers

We have proven experience delivering “Pricing & Margin Management” capabilities across multiple industries within B2B environment

- 3 -

Page 4: Pricing solution boost $38m/yr business benefits for our customers

Pricing Management – An Enterprise wide Challenge

Reactive Pricing “Gut feel” ad-hoc pricing

No central price list

One Price fits All (lacking in segmentation)

Reactive Pricing “Gut feel” ad-hoc pricing

No central price list

One Price fits All (lacking in segmentation)

Error Prone Pricing ProcessUn-synchronized price list versions

Inability to disseminate and control pricing to employees causing inconsistent prices to

customers

Error Prone Pricing ProcessUn-synchronized price list versions

Inability to disseminate and control pricing to employees causing inconsistent prices to

customers

- 4 -

Proprietary & Confidential to Acceval

Ineffective Deal NegotiationLacking in updated information weakens a

negotiation and cause exposure to financial risk

Ineffective Deal NegotiationLacking in updated information weakens a

negotiation and cause exposure to financial risk

Disconnect from Enterprise Systems

Quote-to-Bid and Negotiation process disconnected from other functions/systems

Disconnect from Enterprise Systems

Quote-to-Bid and Negotiation process disconnected from other functions/systems

Enterprise wide ChallengeEnterprise wide Challenge

Page 5: Pricing solution boost $38m/yr business benefits for our customers

Pricing Management and its Importance

� It’s about arriving at the right Offer

Price taking into consideration

– Cost-to-Serve

– Customers

– Competition

� Pricing shows the most substantial

increase in Profits and yet the most

Busin

ess D

rivers

Mckinsey study shows that by

increasing 1% in all business drivers

increase in Profits and yet the most

underutilized profit lever

� A rich opportunity to improve the

bottom line not by cutting cost

� Control and creation of market

segments thru differentiated pricing

� With PriXLence, it means achieving all

these in one software

- 5 -

Proprietary & Confidential to Acceval

Busin

ess D

rivers

Source: Harvard Business Review, McKinsey “The Price Advantage”

Pricing Excellence is important in delivering superior business results

Page 6: Pricing solution boost $38m/yr business benefits for our customers

Pricing Transformation delivers significant business Benefits Case Study :- Chemicals (commodity and specialty)

8,000

10,000

12,000

14,000

8000

10000

12000

14000

Benefits significantly > 1% of Revenue / Year

US

$ / y

ear

(‘000)

US

$ (‘0

00)

Investment AttractivenessInvestment Attractiveness

Benefits and Investment Attractiveness for Pricing transformation initiativeActual

Acceval Client Case Study: Disguised Chemical Company

Business BenefitsBusiness Benefits

0

2,000

4,000

6,000

8,000

Price Optimization Price

Synchronization

Value Pricing Price

Performance

Analysis

Price ForecastingPrice Negotiation

& Control

Total Annual

Recurring

Benefits

One-time

Receivables

Reduction

0

2000

4000

6000

8000

> 1% of Revenue / Year

US

$ / y

ear

(‘000)

US

$ (‘0

00)

Q1

'06

Q3

'06

Q1

'07

Q3

'07

Q1

'08

Q3

'08

Q1

'09

Q3

'09

Q1

'10

Q3

'10

IRR > 40%

For company with annual revenue of US 1 Billion / year, recurring business benefit is more than 10 million / year

Proprietary & Confidential to Acceval- 6 -

Page 7: Pricing solution boost $38m/yr business benefits for our customers

Acceval creates Success for your business at your pace

Pricing & Margin Management(Foundation)

Price Optimisation(Advanced)

Valu

e C

reation ($)

Pricing & Margin Management / Optimisation Continuum

Deal Execution Pricing Analytics

� Reduce Unwarranted Discount / Inconsistent Pricing

Pricing Capabilities Continuum

Valu

e C

reation ($)

� Improve Pricing Policies & Cost to Serve

� Improve Business Mix

� Price based on Customer Value (Value Pricing)

� Optimise Bid Price / List Price

� “Optimise” Product / Service Offerings

Quick Win� Improve Negotiated

Price / Margin

� Enhance Price Differentiation (Segmented Pricing)

While Acceval covers the whole spectrum of pricing capabilities, most companies will start with Pricing & Margin Management areas

Proprietary & Confidential to Acceval

- 7 -

Page 8: Pricing solution boost $38m/yr business benefits for our customers

PriXLence™: Acceval’s flagship Pricing & Margin Management solution for Business To Business Industries

Deal Execution

(List Price / Policy Management, Quotation Management)

1

Pricing / Profitability 2

- 8 -

Proprietary & Confidential to Acceval

Pricing / Profitability Analysis, Segmentation, Competitive Intelligence

2

Value Pricing /Price Optimisation

3

Page 9: Pricing solution boost $38m/yr business benefits for our customers

Value Drivers Benefit Sources

� Improve Offer Price to Customer

� Achieve Better Negotiated Price / Margin

� Reduce Unnecessary Discounting

� Enhance contract compliance

Revenue Enhancement

Compelling Business Benefits : Typically 1-3% of Revenue / year

Company with 100 mil revenue / year ���� 1-3mil benefits / year

Value Proposition for Pricing Transformation enabled by PriXLence™

� Enhance contract compliance

� Improve Capture of Market Price Trend

Opportunities

� Improve Product / Customer / Channel /

Market Mix

� Reduce Costs To Serve, e.g.

– Supply Chain costs

– Customer Support / Service costs

– Channel costs

� Reduce Working Capital Requirements

(payment terms / inventory)

Enhancement

Cost Reduction

Working Capital

Reduction

Earnings After Capital Costs

Proprietary & Confidential to Acceval

- 9 -

Page 10: Pricing solution boost $38m/yr business benefits for our customers

Pricing Management solution enables your Pricing Strategy

Empower and Enable People Empower to quote and negotiate deals

Incentives to promote lower discounts, shorter payment terms

Empower and Enable People Empower to quote and negotiate deals

Incentives to promote lower discounts, shorter payment terms

Policies and ProcessesClear price setting/discount policies/rules

Clear approvals process/authority

Pricing done globally or in-country

Policies and ProcessesClear price setting/discount policies/rules

Clear approvals process/authority

Pricing done globally or in-country

- 10 -

Proprietary & Confidential to Acceval

AnalyzeConstant efforts to quantify each offering to

each target market

Co-Relation of Offer Prices /Volume

Co-Relation of Offer Prices/Market

AnalyzeConstant efforts to quantify each offering to

each target market

Co-Relation of Offer Prices /Volume

Co-Relation of Offer Prices/Market

Control and MeasurementsControls on undeserved discounts

Reviews of previous discounts

Control on Cost-to-Serve factors

Control and MeasurementsControls on undeserved discounts

Reviews of previous discounts

Control on Cost-to-Serve factors

Pricing Management SystemsPricing Management Systems