Financial Services

We help businesses see the true cost of their immaterial products and services

Like in all businesses, all companies operating within the areas of Finance or Professional Services need to understand how their products/services actually consume cost. Dealing mainly with immaterial products, there is seldom any need to worry about “traditional” production costs, related to, for example, manufacturing or warehousing. Instead, finance- and service organisations need to focus on indirect costs that are more relevant, such as the IT systems needed in order to manage and deliver the products and execute the services.

These IT systems are too often seen as “one time investments” – which is wrong. Since your business depends on the systems being up and running, you need to take into calculation all costs that are generated in the process, such as maintenance costs, support costs, and correction costs. These costs are much harder to analyse, which makes cost allocation by customer or service quite difficult. This, in its turn, makes it very tedious to calculate and monitor bottom-line profitability. That is, unless some kind of profitability analysis model is developed and deployed.

The Astrada method makes it possible to understand which resources affect which IT costs within your organisation, for example by means of systems, projects and licenses. The key is to capture your company’s specific needs and business logic. This, in its turn, clearly indicates which costs can be monitored within each resource, and how large these costs actually are.

A one-time analysis can be the starting point for an Astrada implementation, allowing the organisation to continuously follow up IT costs where they are generated. This continuous follow up is made possible by integrating Astrada with the relevant business systems already in operation, thus giving all users within your organisation access to the same high-quality analysis data. This makes all home-made calculation sheets and local databases obsolete, which in its turn improves data quality, at the same time as the IT costs for local application maintenance is reduced.

And since you now have access to reliable profitability analysis information, you are in a much better position to correctly prize both products and services, knowing what they really cost