Strategic Profitability

through
Customer Centricity

Dr. Bala V Balachandran

J.L. Kellogg Distinguished Professor of Accounting &
Information Management (Emeritus in Service), Northwestern University, USA
Founder, Chairman & Dean (Emeritus), Great Lakes Institute of Management, India
The Morphing Business Environment
Levers to Maximize Profit
Levers to Maximize Profit
 Bala’s 4Ms
 Measure Both Revenues & Costs Correctly (ABC)
 Monitor Movement of Both Revenues & Costs
 To Apply 50% Rule
 For Benchmarking
 Rule-I and Cashew nut Rule-II
 & continuous Improvement
 Manage For Action Plan
 Yield Management / Revenue Management
 Throughput Management
 Activity-Based Management
 Process Value Analysis So That We Can
 Maximize Profitability
Strategic Process Management
Strategic Process Management
Strategic Process Management
Example of how a given axis in
Activity Based Management
can be further expanded
 Strategic Profitability Management

A great Vision without Implementation is Nothing but Hallucination

 Revenue Management
 “Revenue management” is the art and science of predicting
real-time consumer demand at the micro market level and
optimizing the price and availability of products”
 Keenly Observe Buying Behavior of Customers
 Objective of RM is to Sell Right Product to Right Customer
at Right Time for Right Price

BE DISTINCT OR BE EXTINCT
 Cost & Revenue Management
CM The relentless pursuit to eliminate Non-value added activities and
optimize resource utilization effectively and efficiently.
RM Ensures that companies will sell the right product to the right
customer at the right time for the right price with the right cost.
 An integrated set of business processes and activities
 Brings together people, systems, knowledge & information
 Goal is to understand market and anticipating customer behavior
 Requirement to respond quickly and effectively to opportunities
 Integrate efficiently with company's resources, products & services
If your ego is bigger than your Logo, then you go
Value Chain Perspective
of Business Functions
Cost Management
Cost Management
Value Chain Perspective

With an EFFICIENT CONSUMER RESPONSE (ECR)

the SUPPLY-DEMAND VALUE CHAIN is optimized
Strategic Cost Management
Balanced Scorecard
 Transform from
Value Chain to Value Hub
Comments &
Questions