Empower Your Business with Enhanced Profitability and Cost Management
Many companies either spend too much time on manually manipulating spreadsheets and understanding key drivers of profitability or, worse yet, spend no time on understanding due to the perceived complexities of the process. Insight to profitability and cost should be a fast, intuitive and automatic process, but too often this is not the case.
Learn how leading organizations are able to gaining insight into hidden profits and costs across key business dimensions – such as products, customers, sales channels, and more
But first, what is Profitability & Cost Management?
Profitability and Cost Management is a purpose-built process available in Oracle Cloud EPM, designed to help businesses manage their project contracts and the associate financial transactions. It provides tools for managing contract creation, tracking, execution, as well as tools for managing project costs and revenue. and includes features for collaboration and communication between project team members and stakeholders as well as sharing project documents, milestones, and status updates.
It is ideal for businesses that manage complex projects that involve multiple contracts, cost centers, and revenue streams and businesses in industries such as construction, engineering, and professional services that require a high degree of contract and financial management.
Common Challenges
One customer case study involves a leading construction company that manages multiple projects across the country. Contracts with multiple subcontractors and need to track expenses and revenue for each project to ensure profitability. They also faced several common challenges:
Manual Processes: Companies may rely on manual processes such as spreadsheets and email to manage contracts and project finances. Without a centralized system for tracking contracts and project finances, companies may lack visibility into key performance indicators such as project profitability, cash flow, and contract compliance. Manual processes can also be time-consuming and error prone which can lead to missing critical project deadlines.
Inefficient Workflows: Inefficient workflows and approval processes can lead to delays in contract approvals, invoicing, and payments, which can negatively impact cash flow and project timelines. Because of this, companies may be at risk of non-compliance with contract terms and regulations which can lead to financial penalties and reputational damage. Negative impacts to profitability and ability to compete in the marketplace are also challenges faced with a manual process.
Limited Scalability: Without a scalable project contract management solution, companies may struggle to manage a growing volume of contracts and projects which may lead limit a businesses’ ability to grow and expand. A company using multiple systems to manage its contracts and projects it can be difficult to consolidate and analyze data across different systems.
Benefits to the Business
According to an Oracle case study, a global engineering and construction firm was able to improve project planning and resource management with Oracle Cloud EPM, resulting in a 10% reduction in overall project duration and a 15% improvement in resource utilization.
In a customer testimonial, a digital marketing agency reported that Oracle Profitability and Cost Management helped them improve project visibility and alignment, resulting in a 30% reduction in project delays and a 15% increase in project profitability.
Additional benefits include:
- Single, centralized repository for managing all contracts associated with a project, providing greater visibility into contract terms, obligations, and deadlines and allowing them to more effectively monitor and manage project risks.
- More effective collaboration among project teams, with the ability to share documents, collaborate on workflows, and manage approvals.
- Real-time financial visibility into project costs, enabling project managers to track budget performance, forecast future expenses, and make better-informed financial decisions.
- Highly scalable and flexible solution that can be customized to meet the unique needs of any organization, regardless of size or industry. It solution can be deployed quickly and can integrate with other enterprise systems, providing a seamless user experience.
Finance and IT teams can also benefit from:
- Improved Financial Control
- Streamline Financial Processes
- Enhanced Contract Compliance
- Improved Financial Reporting
- Increased Collaboration
- Improved System Integration
- Enhanced Data Security
- Increased User Adoption
Solution: Oracle Profitability & Cost Management (within Oracle Cloud EPM)
How do you prioritize and allocate resources across your project portfolio? How do you track project progress and report on project status?
Oracle Cloud EPM provides real-time visibility into project data, including budgets, schedules, and resource allocation. This can help project managers identify potential issues early on and take corrective action before they become bigger problems. It provides a centralized platform for project teams to collaborate and share information. This can help reduce communication silos and improve teamwork, ultimately leading to better project outcomes. Finally, advanced resource management features, such as capacity planning and demand forecasting, are available, which can help project managers optimize resource utilization and improve project efficiency.
