Business reporting and data analysis development
A company, providing extensive CRM systems and other ICT systems as its main B2B offering, experienced varying profitability amongst its customer delivery cases. This occurred even as the main characteristics of the customer delivery cases, such as offered product and service, customer type and size, were similar. This had raised the interest of the management and financial administration to examine why the profitability was fluctuating drastically amongst its customer deliveries and to subsequently understand whether potential measures could be taken to improve the profitability in upcoming customer cases.
The company needed to inspect and analyze its customer delivery cases. Key figures and key performance indicators needed to be looked into and mirrored against a detailed contextual analysis of a selection of customer delivery cases, representing extremities in cost-effectiveness despite resemblance of the main characteristics of the context. The objectives included (a) to create an understanding of the underlying reasons why some customer delivery cases are much more cost-effective than others, and (b) subsequently, based on the novel understanding, make potential business related or operative adjustments.
Magnolia Solutions was assigned responsibility for the analysis of a selection of customer cases pinpointed by the company. As a result of an extensive deep analysis conducted, patterns and factors impacting the cost-effectiveness were documented and communicated in a structured way to the management and financial administration of the company. The process was repeated on a monthly basis, each month covering a new set of customer cases.
The analysis work revealed a number of factors, which played a role in customer delivery case profitability. On the basis of this information, the company was able to implement new kinds of measures to proactively monitor, control, and prevent the emergence of profitability risk entailing aspects. Moreover, the conducted analysis work also directly supported the development of the company’s own internal business reporting capabilities and readiness.