Extracting Costs from the Value Chain by Implementing Benchmarking Best Practices by M. Crevola, Former CFO, Perth Energy
1. It Is All about Figures:
Extracting Costs from the Value Chain by
Implementing Benchmarking Best Practices
Michael Crevola, Former CFO, Perth Energy
2. BENCHMARKING 1979 – TODAY
FROM XEROX TO XERO
1979 – Xerox started to compare itself to its
competitors on unit manufacturing costs.
1986 – Motorola developed six sigma.
2013 – Six Sigma rules but now what?
9. Netflix as Big Brother?
“We monitor what you watch, how often you watch
things. Does a movie have a happy ending, what’s
the level of romance, what’s the level of violence, is
it a cerebral kind of movie or is it light and funny?”
Netflix spokesman Joris Evers.
11. Benchmarking Internal data
• Clearly frame the proposition you want to
understand
• Collect data related to the proposition – bad and
good
• Look at the interconnection between the data
source and the customer
12. Insights from Perth Energy
• Half Hourly Consumption data by Customer
• Contract Price
• Cost of Service
13. Lets Chat!!
• What has worked for you?
• What challenges do you face?
• Cost Reduction vs Revenue Improvement