Business strategy is a module that allows to clearly express the company’s direction and the measures intended to adopt to reach the objectives to sustain the company’s mission.
Starting from the actual company’s situation in terms of productive capacity and open orders, this module allows the management to suppose various scenarios that include:
- Analysis of hypotethical investments;
- Make or buy of purchases and outsourcing;
- Costs variation of materials and components;
- Sales Hypothesis (product mix, quantities and price scenarios);
- Variation of productive capacity.
The application interacts with data of the company’s IT system to acquire information of the interested data areas.
The simulation consists on the possibility to change in an aggregate (for example: for the market and/or product family) and detailed way, at customer and product level any element of analysis (variable):
- Management of financial duties;
- Management of physical internal duties;
- Materials’ and components’ costs;
- Management of possible investments;
- Product’s price determination;
- Sales, with short-medium term orders;
- Acceptance of customers’ special offering requests;
- Machines capacity, overtine, turns, new machines cycles and/or manufacturing plant.
The principal value added consists of giving the effect of every choice or scenario on the company’s profitability.
Based on historical and past datas inserted, the application calculates the marginality indexes and the gaps with respect to the real situation.
The application always proposes two solutions:
- The first one considers the maximum theoretical demand without considering the productive capacity constrain (theoretical);
- The second one considers the effective productive capacity deriving from the company’s choice (realistic).
In order to have a global vision of the company’s financial situation, this solution can be integrated with economic and financial analysis (they give a great support, for example, for what concerns the General Accounting and Analytical Accounting or the monitoring of the cash flows) and business strategy solution.
Moreover, integrating the business strategy with purchases analysis, sales analysis and human resource analysis, the management has all the data for a complete control of the company.