SAS^® Activity-Based Management

By implementing SAS^® Activity-Based Management at more than 750 customer sites, we have discovered a rule of thumb: Companies typically destroy up to 400 percent of the figure quoted in their profit and loss (P&L) sheet. That is, if you stack up all your customers in order of their true contribution to profit, you typically find that the first 30 percent deliver 500 percent of the figure quoted in your P&L. The next 50 percent add nothing. The last 20 percent destroy 400 percent to arrive at your published P&L figure. At SAS, we call this a "profit cliff."

In the Spotlight Creating value in a down economy Read this Q & A with Dr. Peter Turney to see how you could add 400% to the figure sitting in your P&L.

The worst part is not the destruction of value, but that those destroying value are considered an organization’s best customers. Are your marketing, sales and product management teams devising incentives and plans that attract the right customers? Or could they be attracting those that destroy value? If you are unsure, you absolutely need SAS^® Activity-Based Management.

Benefits
With rising costs and falling margins and consumer confidence, managers need far more detail than traditional financial systems provide to remain competitive. With SAS^® Activity-Based Management you can:

• See how cost accumulates in a way that employees can understand and act on.
• Manage how shared service costs are allocated to products, customers, channels and services. 
• Improve processes by identifying cost bottlenecks, rework and activity that doesn’t add value. 
• Learn how changes in driver volumes impact costs/profit/value.
• Evolve how you do business by focusing on what can be leveraged for maximum value.

Features
SAS^® Activity-Based Management is used by commercial enterprises, nonprofits and agencies in the public sector to get unrivaled insight into how cost/value flows:

• Uses any activity-based costing methodology, including bottom-up, consumption and time-driven, to best meet your needs.
• Provides essential data cleansing, enrichment and integration.
• Offers a highly visual, flexible and multidimensional modeling environment with a point-and-click interface.
• Provides Web-based reporting and analysis to ensure cost, process and profitability intelligence can be shared quickly.

How SAS^® is different
SAS invested in cost and profitability analysis in 2002 by acquiring market leader ABC Technologies Inc. Since then, we have completely rebuilt the solution, integrated core SAS functionality, improved speed/scalability and proved that it works for more than 750 customers.   
SAS has more than 30 years of experience describing with statistical accuracy how and why behaviors influence outcomes. We believe that creating a robust cost model deserves the same level of commitment. Our experience allows you to see results in weeks, not years.

Looking for more information on SAS Activity-Based Management? Watch the Webcast Cost and Profitability Optimization. Download the white paper Activity-Based Costing: An Emerging Foundation for Performance Management. Listen to our product manager as he takes you step by step through a tour of the solution. Visit BetterManagement.com for info on activity-based management methodologies and business practices. Read related success stories. Ready to put THE POWER TO KNOW® to work for you? Contact your local SAS office or call us toll free at 1-800-727-0025 (U.S. and Canada). Contact SAS for pricing information and to learn more about our products and solutions. Sign up for one of our free e-newsletters.				Watch the Webcast Cost and Profitability Optimization.