Activity Analysis

Activity based costing (ABC) has been in use by organizations adopting corporate performance management solutions for more than two decades. ABC facilitates the effective use of organizational resources, earning its reputation as a valuable tool for effective cost management and profitability optimization.

However, despite activity based costing demonstrating significant and tangible returns for organizations adopting corporate performance management solutions, others still view it as “too complicated and time consuming”.

Activity Analysis is a Web-based activity based costing application offering an easy solution to both these issues, speeding up data collection and reporting, enabling enterprises to replenish corporate performance management solutions more frequently, put reporting directly into the hands of users and make greater use of the ABC information.

Activity based costing is a proven methodology for pinpointing a business' most profitable customers, products, regions or channels, as well as uncovering the costs of individual business processes that may need to be improved in order to drive higher profit levels. This helps organizations make informed decisions on such issues as:

• Setting pricing and discounting strategies
• Managing the product and customer portfolios to optimize profitability
• Managing customer relationships to ensure that the cost to serve is in line with their potential for profit

Activity Analysis addresses the traditional barriers to implementing activity based costing by combining the functionality of ALG's Metify ABM tool with the benefits of the Enterprise Performance Optimization (EPO) Suite. These include Web-deployment, Work Manager, an open database architecture and easy integration with the rest of the EPO applications.