Cost Modelling for Services NEW
Ensuring value and benefits of your service portfolio
Is the eternal question about the value of services also on your desk? Keeping leadership in the discussion about price or cost of services implies that you have sound control over the cost and value drivers of your services. You need to be able to constantly link value, service levels, quality and cost in order to provide your clients with sound, reliable and correct information about the consequences of the decision which is in the make. Therefore, you need financial modelling for services.
This course will enable participants to develop, manage and adapt a financial model for producing monetary management information, which is oriented on support professional decision taking.
Provide sound knowledge of costing and pricing models
Understand how a financial model supports the value creation of a service
Determine the areas of investment to maximize/increase profits
Provide guidance on establishing a financial model
1. Introduction to Financial Modelling
2. Costing models
b. Incremental costing
c. Activity-based costing
3. Pricing models
a. Free or “freemium”
c. Value based
d. Volume/Tiered based
e. Market based
f. Razor and blade based
4. Financial Modelling
a. Model structure and data
b. Value modelling
c. Define the cost/price strategy of a service
d. Select investment areas to increase profit margins
e. Maximizing value and profit
5. Lessons learned in financial modelling
• Managers and business representatives who need to develop a financial model for their services in the service portfolio
• Project and programme managers leading investment initiatives of service development or improvement where the costing and pricing aspects need to be managed
Theory and concepts illustrated by a trainer with sound expertise and experience in financial modelling.
Group discussions with the purpose to match the relevant financial modelling issues to real life experience.