Every company wants to maximize revenue in order to increase profit. However, that statement is misleading as it doesn’t explain how to actually maximize revenue. Companies struggle and go out of business everyday, because they don’t have the right tools to maximize profits.
High school algebra uses revenue maximization word problems for homework. Simply put: It’s not as straightforward as a math problem. There are numerous terms, figures, equations, and ideas that math students never considered: fixed costs, average variable costs, outputs, profit functions, and various other concepts that proved challenging. Even at a professional level, it is often difficult to exhaust every possible avenue to increase sales.
A Lesson in Being Prepared
Processes in place for continuous improvement regarding savings, automation, standardization, and data analysis—across all departments at a company—can help shared services organizations stay competitive amidst a slow economic growth. To maximize revenue it is equally important to utilize opportunities and take advantage of the best resources available. Whether it is in the classroom or in a Fortune 500 company, the right technology, the right information, and the right capability to solve a problem at the right time can mean great success.
Professionals and industry leaders in will take part in SSON’s Shared Services and Business Transformation Forum NZ 2013 in New Zealand from July 23 to July 25. To join the conversation about the event, find us on Twitter and tweet us your thoughts.