CostPerform software
Understand the why behind every cost. Connect your financial data to the operational activities behind it, model your true cost structure, and make decisions based on facts, not assumptions.
Answering your cost and performance questions
Unclear allocation logic, black box calculations, and complex regulatory demands can be a major headache in finance. For example, how can a bank track the expected profitability of serving a new customer? How can a government department calculate the exact cost of providing a service accurate to the cent? Or how can a telecom network report its costs line by line to the national regulator? CostPerform excels in answering these questions directly with your enterprise ERP data.
Here are some of the questions we help you find the answers to:
Here’s how. Simply put, the cost structure of most organizations consists of four layers. From top to bottom they are: costs, resources, activities, and products and/or services. CostPerform’s cost modeling software allows you to:
- Visualize those layers
- Use them as building blocks to represent the current or future cost structure of your organization.
Reveal the true drivers behind every cost
When you’ve created the structure, you can assign ‘objects’ (as we call them), to each block. For instance, a hospital has objects such as salaries and depreciation costs, nurses and MRI’s as resources, heart surgery and blood transfusions as activities and bypass operations and hip replacements as products.
Once the objects are established, the next step is to find the cause-and-effect relationships between the objects and to record and visualize them into a cost model. This model gives you detailed – and thus extremely valuable – insights into the often very complex cost and capacity flows of your organization. With those insights, you can find answers to any cost and performance question, resulting in the knowledge of where to make adjustments to improve business performance.
Simulate future costs and performance scenarios
But CostPerform doesn’t stop there. Besides being fully customizable to your organizations’ needs, our software is also capable of creating future cost performance scenarios with intelligent simulations, giving you more valuable insights. For instance, when considering whether to introduce a new product or service, you might ask: how will this affect costs, workloads and your profits? CostPerform delivers the answers.
The power of CostPerform: a practical example
A semiconductor company has a $500 million budget to produce 10 million chips. At years-end, bookkeeping signals a budget overrun of 20%: the actual costs were $600 million but they produced 11 million chips. As a CFO, you can just accept this and find someone or something to blame. A more professional approach would be to use CostPerform to do a standard variance analysis. With the help of working standards (batch sizes, time to produce, recipes et cetera), the manufacturer can calculate its allowed costs for the 11 million chips produced.
Besides, thanks to recorded data on time spent and material used, he can better identify the root cause of the 20% overrun, resulting in (positive and negative) price, volume, occupation and efficiency results. A CFO can use this detailed performance information to improve profit, rather than blaming people for overrunning budget and doing nothing about it.
What CostPerform helps you solve
Identify your truly profitable customers
Calculate the true cost of serving each customer and find out who’s profitable, who isn’t, and why.
Explore Customer Profitability
Take control of IT costs
Most IT costs land in a general ledger with no link to who consumed them. CostPerform connects IT spending to the business units consuming it, from showback to full unit cost.
Explore TBM
See true costs across every product, market, or channel
MDC allocates costs across every dimension that matters, so no product or market is subsidizing another without you knowing.
Explore Multi-Dimensional Costing
Defend every compliance number
Regulators don’t accept estimates. CostPerform gives you a fully traceable and auditable cost model your team can stand behind in minutes.
Explore Regulatory Reporting
Turn capacity into a competitive edge
Know exactly how your teams and resources are deployed and where capacity is sitting idle, so you can cut bottlenecks, reduce unnecessary costs, and plan resources precisely.
Explore Capacity Management
Eliminate waste in your activities
Time-Driven Activity-Based Costing (TDABC) uses time as a cost driver to calculate the true cost of each activity, expose unused capacity, and enable variance analysis.
Explore TDABC
CostPerform is an absolute game changer. Not only does it offer unparalleled cost transparency for our clients, but it also facilitates crucial financial sustainability conversations between Finance, Technology, Operations, and the Service Delivery aspects of any organisation.
– Mahmoud Ashmawy, OnPoint Advisory
