Show Me the Money, How to Find it

March 29, 2009

Show me the money, but where do you look?

If you are looking for areas to reduce cost, then analyze your data and find your own gold.  In order to keep focus, follow these simple dimensioning techniques and then dive into the details.

Dimension By

  • Relevance
  • Size of Benefit
  • Potential Penetration
  • Ease of Capture
  • Sustainability

When you add a dimension to your analysis either through a data warehouse, or through simple thought experiments you can quickly pinpoint the quick hits to that of the slow brew money makers.

When you look at the relevance you are exploring weather the opportunity ties to a key value driver, and when you look at the size of benefit you need to tie in the estimated saving potential time frame.  Likewise, will the potential penetration get you more than 50% of the value.  Remember, your resources are scarce so pay particular attention to the ease of capture dimension.  Lastly, will the cost saving initiative be sustainable or will it only be a quick hit that will quickly dissipate over time.

A visual analysis of this technique is shown below.  Hopefully some of this information will lead you through a  thought provoking analysis that will help you find your money quicker through a cost saving portfolio of projects.

Additional filters to apply to the analysis will be:

  • Your current organizational skills
  • Your current knowledge
  • Your prior initiatives and how closely they dovetail with your short list of opportunities

Enjoy and remember, Show me the money!

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