Applying Revenue Management Techniques For Handling Peak-load Demands During The End Of Quarter Rush

...For decades, “the Operations” in enterprises got socially conditioned to believe that cost minimization is the only means within their reach to profitability and assumed all responsibility for revenue maximization as “the sales” function only. A few enterprises, having run their course in the cost minimization path are now slowly beginning to realize the potential of Operations-Centric Revenue Management to profitability and the role “the Operations” can play to contribute to revenue maximization...

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Operations-Centric Revenue Management – Could this be a solution for Fill Rate chargeback challenges?

...Such a technology solution should have following key capabilities 1.Algorithms and heuristics based revenue maximization 2.Trade-offs evaluated expediting 3. Self-score carding based fulfillment processes 4. Delivery performance related KPI dashboards 5. User Configurable Business Rule based Fulfillment processes etc. For all the cross-functional operational teams, it should provide synergistic effort yielding collective insights needed for a single minded pursuit of Revenue Maximization...

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Revenue Management in Real World - Manufacturing Industry Examples

...Though there are several proponents of Revenue Management in academia, the Technology firms and the industry have not so far evinced required levels of interest in this discipline. The quantum leaps in technology and new paradigms like in-memory computing, No SQL, Big Data etc. offer potential for shifting our focus from transaction level to operational level. We should simultaneously change our goal from cost reduction to revenue maximization in our endeavors to harness the power of these technologies in handling the operational data. The operational user’s ability to evaluate the trade-offs involved in determining recourse action is severely impacted by the sheer volume of operations and the number of tradeoffs involved. Hence, the need for a systematic approach and a technology solution arises to effectively handle the demand management operational decisions in an optimal manner to maximize revenues....

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Are Business Models key determinants of success in servicized technology products sales scenario?

...Pricing and billing under the traditional software licensing resembled regular tangible products pricing and billing. The pricing and billing functionality available in the ERP sufficed to handle traditional software licensing. Standard ERP functionality like periodic billing, Resource Related Billing etc. are grossly inadequate to price and bill the usage in Software-as-a-Service business scenarios. Though this slightly resembled the utility billing, there are several additional requirements to be addressed in the case of subscription based B2B billing scenarios. Transparency or providing the customer with the easily verifiable usage statistics is a key requirement. In B2B usage based billing scenarios, it is not just the total usage that the customer expects to see in the invoice - it is also the details of the usage, break-up as per their chargeback mechanisms etc. The requirement for providing the break-up of the usage as per the allocation mechanism specified by individual customer organization arises in the servicized product B2B selling scenario as the customer (being a B2B customer) needs this granular details for their internal cost allocation across a range of cost objects: different Business Units, Divisions, Departments or positions etc...

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