Transaction-based pricing & FedEx.pptVIP免费

Transaction-basedPricingwithaCaseStudyofFedExLeapfrogConfidential-InternalUseOnlyFinancialAdvisoryServicesTrippO’ConnorFebruary2003Confidential-InternalUseOnly2IntroductionBenefitsoftransaction-baseddealsRequirementsofatransaction-baseddealCostanalysisTransactionpricingCostmanagementstrategiesOtherconsiderationsFedExLeapfrogcostsandpricingmodelLessonslearnedfromFedExpursuitFinancialAdvisoryServicesteamContentsConfidential-InternalUseOnly3Atransaction-baseddealisonewhereCGE&Yispaid(inwholeorinpart)accordingtotransactionvolumes.Pricingofthetransactionvolumescanbebasedonsalesordervolume,numberofcustomers,applicationusage,andothers.Theobjectivesofthisdocumentareto:Describethebenefitsanddefinetherequirementsoftransaction-baseddealsProvideinsighttotheanalysisnecessarytoaccuratelycostandeffectivelypriceatransaction-baseddeal,includingvariablepricingSummarizetheFedExLeapfrogpricingmethodologyCommunicatethelessonslearnedfromtheFedExLeapfrogpursuitGenerateinterestinpursuingmoretransaction-baseddealsandusetransactionpricingasacompetitiveadvantageagainstourcompetitorsIntroductionConfidential-InternalUseOnly4Introduction-PricingoptionsScopeofWorkPricingMethodologiesTime&MaterialsFixedFeeTransaction-basedBuildthesolution/systemInfrequent-Feesbasedonaratecardbylevelforthehoursincurredtoaccomplishtheproject(ormilestones).LowestrisktoCGE&Y.IncreasinglyCommon-Predeterminedfees,generallypaiduponcompletionofmilestones(deliverables)Notappropriateunlessthereisveryhighconfidenceinthenumberoftransactionsandqualityofon-goingsystemsupport(possibleinthereplacementofasystemforastablebusinessoperation)Outsourcethesolution/systemoperate,maintain,upgrade,etc.Specificactivities-Generallyreservedforperiodicorminorincrementalscopeofwork(AdditionalResourceCharges,ARCs)Majorityofdeals-Predeterminedfees,thatmayvarybyyear,quarterormonthbasedonadefinedscopeofworkPossible-Opportunityfortransaction-basedpricing,particularlyifthesystemisestablished,transactionvolumesarefairlyconstantandotherrequirementsaremet(page6).Build-Runbuildthesolution/systemandoperate,maintain,upgrade,etcVeryraresincethefinancialriskisontheclient.Majorityofdeals-Generallyclientsexpectthebuildfeestobespreadoverthelifeofthedeal,inwhichcaseCGE&Ymaysacrificemargininthefirstyearduetotransitioncostsandhavehigherprofitsinlateryears.Goodopportunitywhenreplacinganexistingsystemforanestablishedbusinessandotherrequirementsaremet(page6).Foranewbusinessitisuniquelychallengingsincethereisnohistoryofthecostsformaintainingthesystem,andtransactionvolumeswillscaleasthebusinessgrows.FedExLeapfrogisavariabletransaction-baseddeal.Confidential-InternalUseOnly5CGE&Yhasexecutedahandfuloftransaction-baseddeals,andwiththecloseoftheFedExagreementhasaddedavariablepricedtransaction-baseddeal.Ourseniorexecutivessupportaddingmoretransaction-baseddeals,alignedwithourengagementportfoliostrategy,forthebenefitsitcanprovide.Alignrevenue-generatingincentivesbetweenCGE&Yandtheclientsothatbothentitiessucceedwhengeneratinghigherordervolumes,morecustomers,orhighermixofprofitablesalesThetransactionsthatmeasureCGE&YcompensationneedtoberevenuegeneratingtotheclienttoproperlyaligntheincentivesCapitalizeontheupsidesuccessoftheventureClientsaremorelikelytosharetheupsidebywayofatransaction-baseddealsincetheclientwillbeincreasingtheirprofitsastransactionvolumesinc...