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THE ACTIVITY-BASED MANAGEMENT (ABM) APPROACH
In an always-shifting economic context, it is crucial to have performant tools under your belt, able to answer your customers' expectations all the while maintaining your competitiveness. Predictive models must constantly get faster and more precise to identify and elevate growth opportunities all the while providing decision-making support to management.
Activity-based management falls precisely into this always more demanding context. By relying on a deep knowledge of costs and their triggering elements, this approach offers a per activity-based view of the company's profitability. This degree of precision enables the construction of detailed and reliable predictive models, rather than macro-economic figures. Where classical longterm models are limited to acting on a few broad hypotheses, this methodology provides quick and detailed operational costings sorted by activity type.
The in-depth understanding of costs and their functioning thus enables the quick simulation of numerous hypotheses, but also provides invaluable indicators to other departments.
Be they applied to commercial or operational uses, these indicators prevent the redundancy of irrelevant hypotheses by providing elements of profitability from the get-go. In so doing, we simplify the processes all the while reinforcing interdepartmental collaboration.
In-depth knowledge that impacts the whole company
The precision of our methodology enables to reach beyond purely financial considerations by providing every department elements that render long-winded iterative sessions:
- For the executive committee, it provides fast and precise indicators to gauge potential strategic choices based on the company's growth context.
- For the financial department, it provides a budgetary simulation tool, doubled with a pinpoint-accuracy costing control module (invoice comparator).
A digitalized costing control tool offers considerable time-efficiency and allows the reaffection of staff to higher added value tasks.
- For the operational department, it provides elements enabling the addition of an economic dimension to operational choices
(scheduling, operational responses, itinerary variants, maintenance timetables, etc.)
- For the commercial department, the fine-tuned knowledge of return on production costs per activity also enables a better definition of pricing policy and more accurate yield.
- Indicators provided beforehand to commercial and operational departments speed up and improve the relevance of operational decision-making processes.
- By taking into account existing operational outputs, the tool simplifies the process all the while avoiding overloads by deleting redundant operations and analysis tools.
ABM, an aid in making the decisions to face the challenges of tomorrow
Our activity-based management solution goes beyond a mere financial tool. It brings an answer to an ever-increasing need for reactivity and precision.
The ABM approach enables:
- Rapid and detailed multi-faceted simulations to weigh different strategic options.
- The inclusion of customized indicators to add in the financial aspect from the get-go, thus speeding up the decisional process.
- Detailed per-activity results within the company so it may adapt its growth trajectory.
