Best-in-class Companies Dominate Profitable Markets Through Next Generation Demand Management, says AberdeenGroup Report.BOSTON -- Enterprises that deploy next generation demand management processes and technologies are dominating profitable market segments and leaving competitors to fight over the crumbs CRUMBS is an improvisational theatre duo based in Winnipeg, Manitoba, Canada. The duo consists of two actors, Stephen Sim, and Lee White. Other members include videographers, musicians, photographers, webmasters, illustrators, producers, agents, publicists, graphic , says a recent AberdeenGroup Report. "The Demand Manangement Benchmark Report" determined that companies with best in class demand management capabilities consistently outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. their competitors in all customer facing performance indicators. The report demonstrates that the average improvement from a demand management initiative was 4.7 percentage points in percent gross margin, 24% gain in inventory turns and 13 percentage points gain in forecast accuracy. "Market winners consistently focus and dominate the most profitable market segments and leave the less profitable segments to the competition," said Stan Elbaum, Aberdeen's senior vice president of research and author of the report. "Next generation technologies in real-time demand forecasting, pricing management and optimization, and market segmentation Market Segmentation A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. and prioritization are mission critical applications for these dominating players, who continuously analyze and redefine Verb 1. redefine - give a new or different definition to; "She redefined his duties" define, delimit, delimitate, delineate, specify - determine the essential quality of 2. their target segments" Elbaum recommends that companies take the following actions to extract maximum value from their initiatives to improve their demand management capabilities: --Develop a single operational demand forecast --Segment the marketplace to uncover more granular granular /gran·u·lar/ (gran´u-lar) made up of or marked by presence of granules or grains. gran·u·lar adj. 1. Composed or appearing to be composed of granules or grains. 2. sets of customers/product/channel/market mixes and focus on the most critical/profitable segments --Develop an iterative it·er·a·tive adj. 1. Characterized by or involving repetition, recurrence, reiteration, or repetitiousness. 2. Grammar Frequentative. Noun 1. demand management process that involved multiple scenarios and "what-if" simulations and targets margin and profitable revenue growth as the key objectives --Provide the sales organization with the incentive from metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. that include forecast accuracy, and profit targets as well as revenues --Improve demand forecasting accuracy by leveraging the use of next generation causal based forecasting, neural network neural network or neural computing, computer architecture modeled upon the human brain's interconnected system of neurons. Neural networks imitate the brain's ability to sort out patterns and learn from trial and error, discerning and extracting and pattern recognition technologies The "Demand Management Benchmark Report" arms readers with a set of actionable competitive frameworks with which to benchmark their companies against best in class competitors' strategies, processes and technologies. Different prioritized specific recommendations are provided based on the current level of demand management maturity to guide a program of improving top and bottom line results and competitiveness. To download a copy of the report, follow this link: http://aberdeen.com/summary/report/benchmark/DmdMgmt_SE.asp About AberdeenGroup Founded in 1988, AberdeenGroup Inc., is the trusted advisor to the global business executive for value chain strategies and business advice. |
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