How to deliver Business Value using Management Information systems measuring time, cost and quality metrics

1. Successful Management Information projects in a
FTSE100 company, that saved £40.0m p.a. in operating costs
without resource reduction.
Nigel Beck FCCA, ASQ
Managing Director
Optimum Value Solutions Limited
8th May 2018

2. Management Information reporting in a
Homogenous Product Company
To maximise Business performance, it is important to measure metrics with targets across the company.
Many companies do not implement Box 2 above and therefore make sub-optimal business decisions in Box 3.
An example of a Homogeneous Product company is Gas & Electricity, Telecoms, Water, Health Insurance,
House & Car Insurance companies.
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3. The Benefits of reporting Process Costs &
‘Cost of what people do’ Costs?
A successful embedded solution in a FTSE100 company provided:
Direct project benefits
• Measured benefits > £22.0m per annum without resource reduction
• Project implemented in 12 months; and
• The project provided more than 10 times return on Investment.
Indirect project benefits, with :
• Operational cost transparency
• Process Costs reported to the right level of Management
• Tracking Unit rates over time
• ‘Cost to Serve the Customer’ analysis
• Monthly Reporting of Churn Costs including the cost of customer acquisition
• Superior recharge mechanism of operational costs for global tax & legal purposes
• Benchmarking of internal costs
• Right First Time analysis / Reduction of Cost of Poor Quality
• Enhanced Regulatory reporting
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4. The Benefits of reporting Process Costs &
‘Cost of what people do’ Costs?
Further Benefits include:
• Improved Product Costing
• Product Profitability analysis
• Customer Profitability analysis
• Payback period per Customer
• Improved Product Pricing Decisions
• Being able to target investment decisions and track their benefits
• Capacity Planning & Understanding how volumes affect the cost base
• Sales Channel analysis; and
• Reduction of Non-Value Added Activities
• The Finance function speaking the same language as operational management -
leads to improvements in Business Value to support sales and operations and to
maximise profits and control costs.
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5. Business Insight Road Map to
Balanced Scorecards
KPI s Balanced
Scorecard
Six Sigma Process
Customer metrics
Customer Needs
Finance & Employee metrics
Operational
cost metrics
Business
Insight
Activity
Cost
Cost of
Poor Quality
Customer
Profitability
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6. Real Life Benefits of Balanced Scorecards
•Increased Sales
•Operational Efficiencies
•Centralisation of Management Information
•Non-Production of Non-Value Adding KPIs
•Reduction in Systems & Maintenance Costs
•Increase
Direct Benefits with higher
Customer Satisfaction &
Employee Satisfaction
•“Doing it Right First Time” for Customers
•All employees focused on Customer metrics
•All employees delivering the strategic objectives
•One Version of the Truth
•More Management time spent on action to improve
metric results
Indirect Benefits with higher
Customer Satisfaction &
Employee Satisfaction
Highly Confidential
Actual project in a £1bn Turnover Business Unit of a FTSE100 company
Measured
Benefits were
£17.3m p.a. &
Increased Sales
Year 1: Net Margin improvement > 2% which supports sales and operations and to
maximise profits and control costs. Enabled Net Margin to increase 7% in 3 Years.
© 2018 Optimum Value Solutions Limited. All rights reserved.

7. Conclusion
• Best practice in Management Information projects with return on investment
greater than 10 times the investment;
• Improvement in Efficiency with savings of £40.0m p.a. without resource
reduction;
• Projects implemented in 12 months;
• Always evidence previous successful delivery of Management Information
projects;
• Make sure you adopt the “right approach” to successful project management
and then report Management information to the “right people” at the “right
time”; and
• OVS can provide advice, support and help to achieve successful delivery for
your Management Information projects.
Management Information projects that saved costs of £40.0m p.a. without
resource reduction, and increased sales to support the business and operations
and to maximise profits and control costs.
Highly Confidential© 2018 Optimum Value Solutions Limited. All rights reserved.

8. Critical Success Factors
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WHY USE OPTIMUM VALUE SOLUTIONS?
PROJECT DELIVERY
Time 12 months delivery
Cost Competitive pricing
Quality Evidence of previous successful delivery of the MI project
First Mover advantage.
COMPETITOR TO OPTIMUM VALUE SOLUTIONS
PROJECT DELIVERY
Time Delivery can be > 12 months
Cost More expensive than OVS
Quality Need evidence of previous successful delivery of the same MI project
& ensure they know “what to do” as well as “how to” achieve
successful delivery.

9. Important information
Some information in this presentation is based upon publicly available information and reflects prevailing conditions and our views as of this date, all of which are
accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of any
information available from public sources.
The information in this presentation is made by Optimum Value Solutions Ltd and is in all respects subject to the negotiation, agreement and signing of a specific contract.
All rights are reserved.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to
provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice from Optimum Value Solutions Ltd after a thorough examination of the particular
situation.
Whilst the information presented and views expressed in this presentation have been prepared in good faith, Optimum Value Solutions Ltd accepts no responsibility or
liability to any party in connection with such information or views. It is noted that the probability of successful implementation is low (based on time, cost & quality
criterion), where the information contained in this presentation is used without formal engagement with Optimum Value Solutions Ltd.
This presentation has been prepared exclusively for the UK homogenous product market and does not carry any right of publication. This presentation is incomplete without
reference to and should be viewed solely in conjunction with a briefing provided by Optimum Value Solutions Ltd. Neither this presentation nor its content may be used for
any other purpose without prior written consent of Optimum Value Solutions Ltd.
Highly Confidential© 2018 Optimum Value Solutions Limited. All rights reserved.