In today’s assessment landscape, Finance Process Optimization (FPI) and cost reduction are very important as firms strive to reach and maintain sustainable bottom lines. FPI maximises cash flows by lowering the cost of producing the results in the marketplace. Lowering energy expense management internal costs for finance results in greater net profitability.
Many firms have implemented Cost Accounting as additional data capture, yet FPI has been shown to provide more meaningful information to handle market events and stimulate product decisions. Under some energy expense management conditions, FPI may also provide sophisticated Wisdom which may facilitate the poor decision making process and can increase the cost synergism (e.g. stock option valuation) for making a strategic investment or spending decisions within an organisation.
From operations to finance, many software applications are engineered to capture transactional information, but these applications may not reflect the huge volume of variations that can fill the system with information you can’t easily use (or don’t feel comfortable reading). One energy expense management technique called information miners, covers for information with no strings attached. Information miners systematically harvest information from transactional sources. Information miners can be implemented as part of a transactional operations table (TAT) and a transactional data capture (TDC) program.
From the financial perspective, information miners can be implemented as means to establish a pricing negotiation table with an energy expense management broker. Selling and buying information can be captured and processed within a remarkably interactive and accurate format.
From a customer perspective, information miners can be implemented as part of a customer relationship management (CRM) or customer shipping volume management (Castle & Associates) database for acquiring new customers and encouraging existing customers to purchase new products as needed.
Information miners will reap substantial cost savings in the information content process. The main challenge for organisations will be the effort of exploiting the tangible as well as the tangible and intangible benefits from implementing such programs. Selecting the right “mining tool” is the first step. Then, the energy expense management implementation will be a real challenge – and often failure will occur.
Information extract from mined information contains statistical information with rare or rare quality. It is essential that the methodology is soundly based and involves the right type of decision-maker. That said, there is a lot of expert advice for early stage projects available on the web and in organisations that will set up these projects for you.
Information miners have been used for a long time for finding savings balances, estimating future performance, and forecastingMA give food for thought for firms considering applying this approach in their finance function. Despite all the hype out there in the marketplace, data mining has found its mark as the most effective decision making methodology for any organisation for clear cost reductions in areas of sales, costs, and marketing, and they are telling a good story.
From the financial perspective, information mining is the main methodology for ROI management across the enterprise. This process is worth its weight in gold for companies seeking to reduce their costs by 25% in the first three quarters.
Information mining enables regional operations or groups to make decisions based on incorrect currency values, errors in market timing, key values, wrong market conditions which result in inaccurate analysis. The confidence rate among decision makers in the energy expense management company’s decision making system has been evaluated in the presence of data mining – the confidence has become 98.6%!
Information mining systems commonly accompany energy expense management ERP packages and use of off-the-shelf financial software solutions for big business, it has recently been adopted by smaller firms as they can obtain a clear ROI. At the time of this writing, it is still a primary method for management with tea on their shoulders and a notebook at their desk.