Margin & Cost

Holistic view across cost and margin computation

Key challenges without Assurance

The Cost & Margin assurance is important to mitigate the root cause areas of leakage such as hosting cost of unused/redundant assets, higher level of equipment failures than expected, customer does not achieve the expected margin etc. If not followed it leads to challenges like:

  • Not all costs are considered when calculating margins which provides an inaccurate view of borderline products / customers / partners.
  • Not all revenues as per reported financials are mapped when calculating margins.
  • Most margin management programs do not cover the length and breadth of all products & services offered.
  • Complex dashboards that provide very little actionable & measurable outcomes

What Subex Business Assurance offers:

Cross segment computation
This segment involves accumulation of cost across billing, partners, infra, IT, network, and customers. It involves computation across the verticals to give margin
Near real time tracking
Dynamic near real time tracking of products, services & customers that border on high risk & borderline margins
Proactive Risk mitigation
Correlation of margins with payable and collections assurance for mitigation of risk. Revenue accounting, reporting & validation (deferred, unbilled & realized revenue) from order, sales, billing
Intuitive dashboarding and performance
Intuitive dashboarding for each revenue stream, customer segment, What if analysis & product performance

Additional Coverage

The Margin and cost assurance have a key role to play under Business Assurance forum. The reconciliations performed under this assurance are taken from sources like Contract, Service Provisioning, Billing, Third party payables, Faulty Equipment Report, Adjustment/Waiver passed etc. The industry is experiencing the general shift in terms of technology disruption and next generation activities. This assurance also tackles few more challenges across margin leakage and cost allocation etc with its AI/ML based automation and data driven analytics scope such as:

  • Revenue risk modelling
  • ARPU analysis of customers per product
  • Price elasticity analysis to optimize product pricing
  • Simplex Optimization algorithm to estimate components of products
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