CaseStudy - Open access

An international telecoms operator

Creating a cost and profit tool

This international operator was making losses and so needed to move the business into profit. A strategic review was carried out to set a new direction. The management recognized that prices needed to be set sensibly and product managers had to be made responsible for value creation, not simply for selling volumes. Proper business intelligence data was needed on which to base strategic investment decisions.The management realized that these changes could be successful only if there was visibility of costs and a tool to measure them. The operator chose PA Consulting Group to create a model that would transform accounting costs and revenues into measures of product profit and loss.