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Price Optimization
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Agenda
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Agenda
Key Levers to Cost Management3
• To ensure sustainability, reduce
reliance & exposure to short-term
funding needs
• It is also subject to exposure and risks
from areas including receivables,
payables and inventory management
Working Capital Management
• Companies often reduce focus on
operational & process efficiency
• Top performing companies understand
the fact that financial strength is built
from driving out operational
inefficiencies
Operational Efficiency
• Due to reducing cost in china, many
procurement teams are facing growing
pressure
• This will lead to more strategic sourcing,
consolidation of resources and improved
contract & inventory management
Procurement
• Inefficiencies in channel management
and distribution networks needs to be
identified & understood to optimize
efficiency gains along the supply chain
Supply Chain
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Levers to Achieve Successful Cost Optimization4
• How to best
establish the
cost
optimization
program?
• What are the
goals / scope of
the program
Discover
• What can be
done better?
• How can the
benefits and
improvement to
the financial
performance be
permanently
embedded?
Maintain
& Grow
• What is the
scale of the
cost
optimization
opportunities?
Insight
• What
opportunities
are available
and which one
should be
developed?
Design
• Which
opportunities
should be
implemented and
in what order?
Implement
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Levels of Strategic Cost Optimization5
1
2
3
4
Do more with
less
Tighter alignment
with business
Transform to
higher levels
Reduce
Agenda: Cut IT costs, prioritize
demand, span of control
enhancements
Reduce costs and prioritize spend
Optimize
Agenda: Improve processes, “go
lean,” evaluate target operations
models (shared services), exercise
sourcing options.
Remove waste, increase efficiency
Rationalize
Agenda: Rationalize IT portfolio,
reduce functional redundancies.
Business relevance, flexibility,
agility
Transform
Agenda: Evaluate technology,
broaden capabilities., create new
sources of revenue.
Invest more to optimize more
CostSaving
High
Low
Nature of IT Cost OptimizationTactical Strategic
Levels of Strategic Cost Optimization6
Reduce
Agenda: Cut IT costs, prioritize
demand, span of control
enhancements
Reduce costs and prioritize spend
Optimize
Agenda: Improve processes, “go
lean,” evaluate target operations
models (shared services), exercise
sourcing options.
Remove waste, increase efficiency
Rationalize
Agenda: Rationalize IT portfolio,
reduce functional redundancies.
Business relevance, flexibility,
agility
Transform
Agenda: Evaluate technology,
broaden capabilities., create new
sources of revenue.
Invest more to optimize more
CostSaving
High
Low
Nature of IT Cost OptimizationTactical Strategic
Do more with
less
Tighter alignment
with business
Transform to
higher levels
Detailed Levels Within Strategic Cost Optimization Framework7
Level 1 Level 2 Level 3 Level 4
Reduce: Cut costs and prioritize spend
Companies tend to prioritize cost optimization initiatives by
simply considering short-term cash savings
Optimize: Remove waste and increase efficiency
The focus should be on eliminating excess waste while increasing
the efficiency of current systems
Rationalize: Seek business relevance, flexibility and agility
It is imperative to focus on business goals and ensure that IT initiatives are aligned with business objectives and priorities. IT
performance metrics should be closely tied to business metrics so that their alignment can be measured appropriately
Transform: Invest more to optimize more
As economic conditions improve, companies can focus their cost optimization efforts on implementing long-term business and IT process
improvements, enabling business growth and innovation, and repositioning the business to sustain a competitive advantage
Prioritizing IT Cost Optimization8
Dimension
Score
1 2 3
Strategic Value Low Medium High
IT Control Low Medium High
Potential Cost & Benefit Low Medium High
Customer Impact Negative Neutral Positive
Time to Benefit Realization < 18 Months 6-18 Months < 6 Months
Degree of Business Risk
Reengineering of current
processes & organizational
structures. Staff redundancies.
Limited changes in roles &
organizational structures
Minimal organizational
change & staff impact
Degree of Technical Risk
Impact on operating system,
database & middleware.
Moderate impact on few
technical components.
Minor impact on technical
components
Likelihood of Reprioritization &
Cancellation
High Medium Low
Investment Requirement High Medium Low
Total Score Reject
9
Evaluate
18
Accept
22 27
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IT Cost Optimization Initiative Benefits9
Application Portfolio Rationalization
• Improved Cost Management
• Increased Efficiency
• Business Transformation
Infrastructure Rationalization
• Reduce total cost of ownership
• Improve economies of scale by
standardization of assets
Organization & Operating Model
• Savings due to process
standardization and reduced re-work
• Improved Product Quality and Service
Operations & Process Transformation
• Improve visibility of end-to-end value chain
• Increase demand forecast accuracy
• Drive significant increase in bottom line.
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Improving business efficiency
through analytics
Advanced analytics helps in reducing customer churn and
make equipment safer. Utilizing analytics also helps in the
customer retention or improving marketing responses which in
turn can have a big impact on the business
Digitalization of Business processes
Develop an integrated approach that brings together
required competencies & expertise, along with buy-
in from the executive leadership team
Improving inventory management
As inventory is a working capital asset, reducing inventory
will contribute directly to the bottom line
Continuous improvement culture
CIOs need to work collaboratively with business leaders to focus
on lean improvement efforts
Cost
Optimization
Techniques
10
Improving Data Management
Enable people to share data in an easy & efficient way &
use that data to create business value through better &
faster decisions
Supply Chain Optimization
Develop an integrated approach that brings together
required competencies & expertise, along with buy-
in from the executive leadership team
Process Automation
Business leaders need to go beyond the current use of
automation to robotics, and leverage the Internet of Things
and smart machines to build intelligent business processes
Customer Self-Service
Establish a strategy to handle self-service technologies, which
must be continuously updated and based on the customer’s
perspective and experience
Cost
Optimization
Techniques
11
Cost Optimization Planning12
Already
Done
Plan to
Do
Save
IT Procurement
• Hiring internally at lower rates than contact
staff
• Deferring desktop Replacements
• Your Text Here
• Your Text Here
15
12
18
21
19
12
16
31
13
14
19
21
Cost Savings within IT
• Open-Source desktop Software
• Consolidation of data centers within a single
agency
• Your Text Here
• Your Text Here
x
x
x
x
x
x
x
x
x
x
x
x
Joint Business &
IT Savings
• Asset utilization Analysis
• Teleworking
• Your Text Here
• Your Text Here
x
x
x
x
x
x
x
x
x
x
x
x
Process Improvement,
Business Restructuring &
Innovation
• Sharing citizen call centers across agencies
• Sharing IT help desk across agencies
• Your Text Here
x
x
x
x
x
x
x
x
x
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Stages in Cost Reduction13
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Cost
Cutting
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Cost
Management
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Cost
Design
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Cost
Positioning
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1. Cost Cutting14
Cost Cutting involves cuts in
spending based on arbitrary criteria.
Costs are divided into committed &
discretionary categories.
Cuts target discretionary before
committed; large before small;
expedient before sensitive.
Performance measured against
historical standards
01
02
03
04
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2. Cost Management15
Cost Management
involves a systematic
approach to cost
reduction that involves
an understanding of
relevant cost drivers
Costs are
organized by
resources,
activities, and cost
objects
Reductions achieved by
eliminating unused
capacity, nonvalue-
added activities, &
reducing activity cycle
times.
Performance
measured against
long-term target
standards
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Cost Design involves an
evaluation & redesign of the
internal value chain . It seeks to
improve the relationship among
resources required and work
performed to satisfy customer
requirements
Costs are
organized by
process & sub
process.
Text Here
Reductions
achieved by
eliminating
redundancy &
conforming to
operational strategy.
Text Here
Performance
measured against
best-in-class
standards of
performance.
Text Here
16
17
Cost Positioning involves an evaluation &
redesign of the external value chain. It
seeks to improve the relationship among
supply chain members to enhance
competitiveness
4. Cost
Positioning
Performance measured against strategic objectives such as
market share & price targets
Costs are organized by links in the value chain
Reductions achieved by consolidation of links, sharing information,
better coordination, & exploiting synergies among supply chain
members
Comparison of Stages18
Stages Cost Cutting Cost Management Cost Design Cost Positioning
Basis Arbitrary spending cuts Understanding cost drivers Redesign internal value chain Redesign external value chain
Objective Achieve cost reduction targets Satisfy customer requirements
Enhance company
competitiveness
Enhance s. chain
competitiveness
Time horizon Short term Medium Term Long term Long Term
Perspective Internal Internal Internal External
Cost Measurement
Classified into committed &
discretionary
Organized by resources
activities, & cost objects
Organized by links in the
internal value chain
Organized by links in the
external value chain
Reduction Methodology
Reduce discretionary large &
expedient costs
Eliminate unused capacity, NVA
activities & reduce cycle times
Eliminate redundancy &
conform to operational
strategy
Consolidate links, share
information, coordination,&
synergies
Performance Standards Historical standards Long-term standards Best –in- class standards Strategic objectives
Common tool Standard costing Kaizen Costing Activity-Based Planning Strategic Cost Management
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Price Optimization Icons Slide19
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Let’s Have a
Coffee
Break!
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Let’s Start again in 30 Minutes
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About
Us
22
Our Team23
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Designation
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Target24
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01
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02
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Puzzle25
04
03
02
01
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Location26
United
States
Brazil
Nigeria
China
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Timeline27
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2015
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2016
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2018
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2019
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Bulb or Idea28
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Magnifying Glass29
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Charts &
Graphs
Pie Chart31
20%
40%
18%10%
12%
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Product
01
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Product
02
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Product
03
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Product
04
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Product
05
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Area Chart32
0
10
20
30
40
50
60
70
80
90
100
DecNovOctSepAugJulJunMayAprMarFebJan
SalesinPercentage(%)
Financial Year 2018
Product01 Product02
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Scatter Bubble Chart33
20
60
30
40
75
55
80
90
10
20
30
40
50
60
70
80
90
100
10 20 30 40 50
Profit(InSales)
In Percentage
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Product
01
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Product
01
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0
5
10
15
20
25
30
35
03-05-2018
05-05-2018
08-05-2018
12-04-2018
15-05-2018
17-05-2018
Radar Chart34
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01
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01
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Price Optimization PowerPoint Presentation Slides

  • 2. 2 Agenda 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Agenda 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Agenda 02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Agenda 04 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Agenda 05 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Agenda
  • 3. Key Levers to Cost Management3 • To ensure sustainability, reduce reliance & exposure to short-term funding needs • It is also subject to exposure and risks from areas including receivables, payables and inventory management Working Capital Management • Companies often reduce focus on operational & process efficiency • Top performing companies understand the fact that financial strength is built from driving out operational inefficiencies Operational Efficiency • Due to reducing cost in china, many procurement teams are facing growing pressure • This will lead to more strategic sourcing, consolidation of resources and improved contract & inventory management Procurement • Inefficiencies in channel management and distribution networks needs to be identified & understood to optimize efficiency gains along the supply chain Supply Chain This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 4. Levers to Achieve Successful Cost Optimization4 • How to best establish the cost optimization program? • What are the goals / scope of the program Discover • What can be done better? • How can the benefits and improvement to the financial performance be permanently embedded? Maintain & Grow • What is the scale of the cost optimization opportunities? Insight • What opportunities are available and which one should be developed? Design • Which opportunities should be implemented and in what order? Implement This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 5. Levels of Strategic Cost Optimization5 1 2 3 4 Do more with less Tighter alignment with business Transform to higher levels Reduce Agenda: Cut IT costs, prioritize demand, span of control enhancements Reduce costs and prioritize spend Optimize Agenda: Improve processes, “go lean,” evaluate target operations models (shared services), exercise sourcing options. Remove waste, increase efficiency Rationalize Agenda: Rationalize IT portfolio, reduce functional redundancies. Business relevance, flexibility, agility Transform Agenda: Evaluate technology, broaden capabilities., create new sources of revenue. Invest more to optimize more CostSaving High Low Nature of IT Cost OptimizationTactical Strategic
  • 6. Levels of Strategic Cost Optimization6 Reduce Agenda: Cut IT costs, prioritize demand, span of control enhancements Reduce costs and prioritize spend Optimize Agenda: Improve processes, “go lean,” evaluate target operations models (shared services), exercise sourcing options. Remove waste, increase efficiency Rationalize Agenda: Rationalize IT portfolio, reduce functional redundancies. Business relevance, flexibility, agility Transform Agenda: Evaluate technology, broaden capabilities., create new sources of revenue. Invest more to optimize more CostSaving High Low Nature of IT Cost OptimizationTactical Strategic Do more with less Tighter alignment with business Transform to higher levels
  • 7. Detailed Levels Within Strategic Cost Optimization Framework7 Level 1 Level 2 Level 3 Level 4 Reduce: Cut costs and prioritize spend Companies tend to prioritize cost optimization initiatives by simply considering short-term cash savings Optimize: Remove waste and increase efficiency The focus should be on eliminating excess waste while increasing the efficiency of current systems Rationalize: Seek business relevance, flexibility and agility It is imperative to focus on business goals and ensure that IT initiatives are aligned with business objectives and priorities. IT performance metrics should be closely tied to business metrics so that their alignment can be measured appropriately Transform: Invest more to optimize more As economic conditions improve, companies can focus their cost optimization efforts on implementing long-term business and IT process improvements, enabling business growth and innovation, and repositioning the business to sustain a competitive advantage
  • 8. Prioritizing IT Cost Optimization8 Dimension Score 1 2 3 Strategic Value Low Medium High IT Control Low Medium High Potential Cost & Benefit Low Medium High Customer Impact Negative Neutral Positive Time to Benefit Realization < 18 Months 6-18 Months < 6 Months Degree of Business Risk Reengineering of current processes & organizational structures. Staff redundancies. Limited changes in roles & organizational structures Minimal organizational change & staff impact Degree of Technical Risk Impact on operating system, database & middleware. Moderate impact on few technical components. Minor impact on technical components Likelihood of Reprioritization & Cancellation High Medium Low Investment Requirement High Medium Low Total Score Reject 9 Evaluate 18 Accept 22 27 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 9. IT Cost Optimization Initiative Benefits9 Application Portfolio Rationalization • Improved Cost Management • Increased Efficiency • Business Transformation Infrastructure Rationalization • Reduce total cost of ownership • Improve economies of scale by standardization of assets Organization & Operating Model • Savings due to process standardization and reduced re-work • Improved Product Quality and Service Operations & Process Transformation • Improve visibility of end-to-end value chain • Increase demand forecast accuracy • Drive significant increase in bottom line. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 10. Improving business efficiency through analytics Advanced analytics helps in reducing customer churn and make equipment safer. Utilizing analytics also helps in the customer retention or improving marketing responses which in turn can have a big impact on the business Digitalization of Business processes Develop an integrated approach that brings together required competencies & expertise, along with buy- in from the executive leadership team Improving inventory management As inventory is a working capital asset, reducing inventory will contribute directly to the bottom line Continuous improvement culture CIOs need to work collaboratively with business leaders to focus on lean improvement efforts Cost Optimization Techniques 10
  • 11. Improving Data Management Enable people to share data in an easy & efficient way & use that data to create business value through better & faster decisions Supply Chain Optimization Develop an integrated approach that brings together required competencies & expertise, along with buy- in from the executive leadership team Process Automation Business leaders need to go beyond the current use of automation to robotics, and leverage the Internet of Things and smart machines to build intelligent business processes Customer Self-Service Establish a strategy to handle self-service technologies, which must be continuously updated and based on the customer’s perspective and experience Cost Optimization Techniques 11
  • 12. Cost Optimization Planning12 Already Done Plan to Do Save IT Procurement • Hiring internally at lower rates than contact staff • Deferring desktop Replacements • Your Text Here • Your Text Here 15 12 18 21 19 12 16 31 13 14 19 21 Cost Savings within IT • Open-Source desktop Software • Consolidation of data centers within a single agency • Your Text Here • Your Text Here x x x x x x x x x x x x Joint Business & IT Savings • Asset utilization Analysis • Teleworking • Your Text Here • Your Text Here x x x x x x x x x x x x Process Improvement, Business Restructuring & Innovation • Sharing citizen call centers across agencies • Sharing IT help desk across agencies • Your Text Here x x x x x x x x x This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 13. Stages in Cost Reduction13 This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. Cost Cutting This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. Cost Management This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. Cost Design This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. Cost Positioning This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 14. 1. Cost Cutting14 Cost Cutting involves cuts in spending based on arbitrary criteria. Costs are divided into committed & discretionary categories. Cuts target discretionary before committed; large before small; expedient before sensitive. Performance measured against historical standards 01 02 03 04 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 15. 2. Cost Management15 Cost Management involves a systematic approach to cost reduction that involves an understanding of relevant cost drivers Costs are organized by resources, activities, and cost objects Reductions achieved by eliminating unused capacity, nonvalue- added activities, & reducing activity cycle times. Performance measured against long-term target standards This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 16. Cost Design involves an evaluation & redesign of the internal value chain . It seeks to improve the relationship among resources required and work performed to satisfy customer requirements Costs are organized by process & sub process. Text Here Reductions achieved by eliminating redundancy & conforming to operational strategy. Text Here Performance measured against best-in-class standards of performance. Text Here 16
  • 17. 17 Cost Positioning involves an evaluation & redesign of the external value chain. It seeks to improve the relationship among supply chain members to enhance competitiveness 4. Cost Positioning Performance measured against strategic objectives such as market share & price targets Costs are organized by links in the value chain Reductions achieved by consolidation of links, sharing information, better coordination, & exploiting synergies among supply chain members
  • 18. Comparison of Stages18 Stages Cost Cutting Cost Management Cost Design Cost Positioning Basis Arbitrary spending cuts Understanding cost drivers Redesign internal value chain Redesign external value chain Objective Achieve cost reduction targets Satisfy customer requirements Enhance company competitiveness Enhance s. chain competitiveness Time horizon Short term Medium Term Long term Long Term Perspective Internal Internal Internal External Cost Measurement Classified into committed & discretionary Organized by resources activities, & cost objects Organized by links in the internal value chain Organized by links in the external value chain Reduction Methodology Reduce discretionary large & expedient costs Eliminate unused capacity, NVA activities & reduce cycle times Eliminate redundancy & conform to operational strategy Consolidate links, share information, coordination,& synergies Performance Standards Historical standards Long-term standards Best –in- class standards Strategic objectives Common tool Standard costing Kaizen Costing Activity-Based Planning Strategic Cost Management This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 19. Price Optimization Icons Slide19 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 20. Let’s Have a Coffee Break! This is a representative image, and should be replaced by your own image. Just right click and replace image. Let’s Start again in 30 Minutes 20
  • 22. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. About Us 22
  • 23. Our Team23 This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. Name Here Designation This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. Name Here Designation This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. Name Here Designation This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. Name Here Designation This is a representative image, and should be replaced by your own image. Just right click and replace image.
  • 24. Target24 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 04 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 25. Puzzle25 04 03 02 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 04 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 26. Location26 United States Brazil Nigeria China This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 27. Timeline27 This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. 2015 This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. 2016 This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. 2017 This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. 2018 This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. 2019 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 28. Bulb or Idea28 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.04 This is a representative image, and should be replaced by your own image. Just right click and replace image.
  • 29. Magnifying Glass29 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 31. Pie Chart31 20% 40% 18%10% 12% This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 04 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 05 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 32. Area Chart32 0 10 20 30 40 50 60 70 80 90 100 DecNovOctSepAugJulJunMayAprMarFebJan SalesinPercentage(%) Financial Year 2018 Product01 Product02 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 33. Scatter Bubble Chart33 20 60 30 40 75 55 80 90 10 20 30 40 50 60 70 80 90 100 10 20 30 40 50 Profit(InSales) In Percentage This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 01 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 34. 0 5 10 15 20 25 30 35 03-05-2018 05-05-2018 08-05-2018 12-04-2018 15-05-2018 17-05-2018 Radar Chart34 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 01 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 35. 35 Thank You Contact Numbers: 0123456789 Email Address: emailaddress123@gmail.com Address: # Street number, city, state