SAS® Profitability Management to ship

25 October 2006

New offering will meet demand for high-volume, granular profitability analysis

SAS® Profitability Management, which facilitates faster, better decisions on product-mix, customer-mix, and marketing or sales programs, will ship in Q4 2006. With flexible and reliable cost-and-revenue business modelling, SAS, the leader in business intelligence, will provide critical revenue intelligence – including insights into what drives profitability. Decision makers across the enterprise from finance to marketing can investigate issues and develop corrective actions. By better understanding profitability drivers, they can make quick improvements in the areas that have the greatest impact on the bottom line.

With SAS Profitability Management, decision makers will be able to define the segmentation reports that they need on the fly. Removing delays in centralised report creation improves productivity when field personnel can create their own reports.

For example, business managers can track the profit performance of customer groups or individual customers; product groups or individual SKUs; channels or specific branches. This drill-down view into revenue, cost and asset categories enables them to manage profit as a performance metric. Such a level of granularity has not been possible with traditional activity-based costing systems.

“Only SAS delivers the scalability needed to calculate profitability at the individual customer transaction,” said Tony Adkins, Product Manager at SAS. “SAS Profitability Management enables decision making based on profitability rather than revenue – enabling organisations to create more profitable customer, product and channel strategies.”

"With SAS Profitability Management, we'll more clearly understand our transaction costs and can better evaluate prospects before accepting them as customers or setting pricing." said Peter Conner, Executive Vice President and Treasurer at First National Bank of Arizona. "And, we can better identify our most valuable customers so we can invest more heavily in them."

Analysts agree the future of profitability management lies in the ability to analyse data at the transaction level. "Intensifying focus on profitability analysis—customers, products, orders, and channels—requires attributing cost to revenue. Allocation models don’t readily reflect real cost. It’s all about profitability. I’ve done a lot of research on the pricing and profitability management market lately, which is all about setting and getting the right price to increase margins on a deal-by-deal basis," wrote John Hagerty of AMR Research in an Alert Article published September 14, 2006.

SAS Profitability Management is built on the SAS Enterprise Intelligence Platform, which optimally integrates individual technology components within the existing IT infrastructure into a single, unified system. The result is an information flow that transcends organisational silos, diverse computing platforms and niche tools – and delivers new insights that drive value for an organisation.

Today’s announcement was made at BetterManagement LIVE, a business conference in Las Vegas that brings together more than 1,000 attendees from the public and private sector to share ideas and knowledge on critical business management issues.

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