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“Rapid Delivery of Business Value through

             Pricing & Margin Management”

            terence.chan@acceval-intl.com



Proprietary & Confidential to Acceval
Who Is Acceval ?


Leading provider and pioneer in Asia Pacific for Pricing &                  Recipient of
Margin Management Software for Business-to-Business                     Singapore Infocomm
companies                                                                  Award 2008 for
Created more than USD 38 million/yr worth of business                      Best Industrial
                                                                            Application
benefits to-date for our customers
PriXLence™ is an Enterprise Class software developed based
on Pricing Best Practices from leading thought leaders such
as McKinsey and Co.
Designed to give business users control in every step of the
Pricing Process from Segmentation to Deal Execution to Deal
Negotiation to Closure
Pioneered by a team of consultants from world class
organizations (Accenture, Deloitte, SAP Consulting)
                                                                           Best Customer ROI
Acceval’s Partners includes Accenture, IBM, HP, Singtel, and                     Award
other industry-specific consulting partners
Founder is ex-Shell
                                                 -2-
                                Proprietary & Confidential to Acceval
We have proven experience delivering “Pricing & Margin Management”
capabilities across multiple industries within B2B environment




                                  -3-
Pricing Management – An Enterprise wide Challenge




              Reactive Pricing                                 Error Prone Pricing Process
            “Gut feel” ad-hoc pricing                             Un-synchronized price list versions
                No central price list                        Inability to disseminate and control pricing to
    One Price fits All (lacking in segmentation)               employees causing inconsistent prices to
                                                                               customers



                                Enterprise wide Challenge


      Ineffective Deal Negotiation                              Disconnect from Enterprise
     Lacking in updated information weakens a                           Systems
    negotiation and cause exposure to financial                 Quote-to-Bid and Negotiation process
                       risk                                  disconnected from other functions/systems




                                                       -4-
                                      Proprietary & Confidential to Acceval
Pricing Management and its Importance


It’s about arriving at the right Offer                        Mckinsey study shows that by
Price taking into consideration                               increasing 1% in all business drivers
  – Cost-to-Serve
  – Customers
  – Competition
Pricing shows the most substantial




                                                       Business Drivers
increase in Profits and yet the most
underutilized profit lever
A rich opportunity to improve the
bottom line not by cutting cost
Control and creation of market
segments thru differentiated pricing
With PriXLence, it means achieving all
these in one software                               Source: Harvard Business Review, McKinsey “The Price Advantage”

                                                   Pricing Excellence is important in delivering superior
                                                                     business results
                                                 -5-
                                Proprietary & Confidential to Acceval
Pricing Transformation delivers significant business Benefits
      Case Study :- Chemicals (commodity and specialty)

                                      Benefits and Investment Attractiveness for Pricing transformation initiative
                                                                                                                                                                                                                       Actual
                                                                                                                                                                                                                   Acceval Client
                                                                            Business Benefits                                                                                                                       Case Study:
                     14,000                                                                                                                               14000                                                      Disguised
                                                                                                                                                                                                                     Chemical
                                                                                                                                                                                                                     Company
                     12,000                                                                                                                               12000


                     10,000                                                                                                                               10000  Investment Attractiveness
US $ / year (‘000)




                      8,000
                                                           Benefits significantly                                                                         8000




                                                                                                                                                                  US $ (‘000)
                                                           > 1% of Revenue / Year
                      6,000                                                                                                                               6000


                      4,000                                                                                                                               4000                       IRR > 40%
                      2,000                                                                                                                               2000


                         0                                                                                                                                0
                              P Optim
                               rice  ization    Price       Value Pricing       Price    Price ForecastingPrice Negotiation Total Annual     One-tim e
                                            Synchronization                 Perform ance                      & Control      Recurring      Receivables
                                                                              Analysis                                        Benefits       Reduction
                For company with annual revenue of US
                1 Billion / year, recurring business
                benefit is more than 10 million / year
                                                                                                                             6


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                                                                                                                                      -6-
                                                                                                         Proprietary & Confidential to Acceval
Acceval creates Success for your business at your pace


                                    Pricing & Margin Management / Optimisation Continuum


                                  Pricing & Margin Management                                        Price Optimisation
                                          (Foundation)                                                  (Advanced)
Value Creation ($)




                                      Deal Execution                             Pricing Analytics

                                                                                                      Price based on
                                                                                                      Customer Value
                          Quick Win                                                                   (Value Pricing)
                                               Improve Negotiated              Improve Pricing
                      Reduce Unwarranted       Price / Margin                  Policies & Cost to     Optimise Bid Price /
                      Discount /                                               Serve                  List Price
                      Inconsistent Pricing     Enhance Price
                                               Differentiation                 Improve Business       “Optimise” Product
                                               (Segmented Pricing)             Mix                    / Service Offerings

                                                                                           Pricing Capabilities Continuum
                             While Acceval covers the whole spectrum of pricing capabilities, most companies will
                             start with Pricing & Margin Management areas
                                                                        -7-
                                                           Proprietary & Confidential to Acceval
PriXLence™: Acceval’s flagship Pricing & Margin Management solution for
Business To Business Industries

 1
            Deal Execution
      (List Price / Policy Management,
          Quotation Management)



  2
        Pricing / Profitability
      Analysis, Segmentation,
      Competitive Intelligence


  3

          Value Pricing /
        Price Optimisation


                                                  -8-
                                 Proprietary & Confidential to Acceval
Value Proposition for Pricing Transformation enabled by PriXLence™

                 Compelling Business Benefits : Typically 1-3% of Revenue / year
                  Company with 100 mil revenue / year     1-3mil benefits / year

                        Value Drivers                                 Benefit Sources
                                                       Improve Offer Price to Customer
                                                       Achieve Better Negotiated Price / Margin

                        Revenue                        Reduce Unnecessary Discounting
                      Enhancement                      Enhance contract compliance
                                                       Improve Capture of Market Price Trend
Earnings After                                         Opportunities
Capital Costs                                          Improve Product / Customer / Channel /
                                                       Market Mix

                          Cost                         Reduce Costs To Serve, e.g.
                        Reduction                         – Supply Chain costs
                                                          – Customer Support / Service costs
                                                          – Channel costs
                         Working
                         Capital                       Reduce Working Capital Requirements
                        Reduction                      (payment terms / inventory)
                                                 -9-
                                    Proprietary & Confidential to Acceval
Pricing Management solution enables your Pricing Strategy




     Empower and Enable People                                     Policies and Processes
                                                               Clear price setting/discount policies/rules
      Empower to quote and negotiate deals
                                                                   Clear approvals process/authority
      Incentives to promote lower discounts,
              shorter payment terms                               Pricing done globally or in-country




                             Pricing Management Systems

                    Analyze
                                                                Control and Measurements
    Constant efforts to quantify each offering to
                each target market                                Controls on undeserved discounts
       Co-Relation of Offer Prices /Volume                          Reviews of previous discounts
        Co-Relation of Offer Prices/Market                         Control on Cost-to-Serve factors



                                                      - 10 -
                                      Proprietary & Confidential to Acceval

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Pricing solution boost $38m/yr business benefits for our customers

  • 1. “Rapid Delivery of Business Value through Pricing & Margin Management” terence.chan@acceval-intl.com Proprietary & Confidential to Acceval
  • 2. Who Is Acceval ? Leading provider and pioneer in Asia Pacific for Pricing & Recipient of Margin Management Software for Business-to-Business Singapore Infocomm companies Award 2008 for Created more than USD 38 million/yr worth of business Best Industrial Application benefits to-date for our customers PriXLence™ is an Enterprise Class software developed based on Pricing Best Practices from leading thought leaders such as McKinsey and Co. Designed to give business users control in every step of the Pricing Process from Segmentation to Deal Execution to Deal Negotiation to Closure Pioneered by a team of consultants from world class organizations (Accenture, Deloitte, SAP Consulting) Best Customer ROI Acceval’s Partners includes Accenture, IBM, HP, Singtel, and Award other industry-specific consulting partners Founder is ex-Shell -2- Proprietary & Confidential to Acceval
  • 3. We have proven experience delivering “Pricing & Margin Management” capabilities across multiple industries within B2B environment -3-
  • 4. Pricing Management – An Enterprise wide Challenge Reactive Pricing Error Prone Pricing Process “Gut feel” ad-hoc pricing Un-synchronized price list versions No central price list Inability to disseminate and control pricing to One Price fits All (lacking in segmentation) employees causing inconsistent prices to customers Enterprise wide Challenge Ineffective Deal Negotiation Disconnect from Enterprise Lacking in updated information weakens a Systems negotiation and cause exposure to financial Quote-to-Bid and Negotiation process risk disconnected from other functions/systems -4- Proprietary & Confidential to Acceval
  • 5. Pricing Management and its Importance It’s about arriving at the right Offer Mckinsey study shows that by Price taking into consideration increasing 1% in all business drivers – Cost-to-Serve – Customers – Competition Pricing shows the most substantial Business Drivers increase in Profits and yet the most underutilized profit lever A rich opportunity to improve the bottom line not by cutting cost Control and creation of market segments thru differentiated pricing With PriXLence, it means achieving all these in one software Source: Harvard Business Review, McKinsey “The Price Advantage” Pricing Excellence is important in delivering superior business results -5- Proprietary & Confidential to Acceval
  • 6. Pricing Transformation delivers significant business Benefits Case Study :- Chemicals (commodity and specialty) Benefits and Investment Attractiveness for Pricing transformation initiative Actual Acceval Client Business Benefits Case Study: 14,000 14000 Disguised Chemical Company 12,000 12000 10,000 10000 Investment Attractiveness US $ / year (‘000) 8,000 Benefits significantly 8000 US $ (‘000) > 1% of Revenue / Year 6,000 6000 4,000 4000 IRR > 40% 2,000 2000 0 0 P Optim rice ization Price Value Pricing Price Price ForecastingPrice Negotiation Total Annual One-tim e Synchronization Perform ance & Control Recurring Receivables Analysis Benefits Reduction For company with annual revenue of US 1 Billion / year, recurring business benefit is more than 10 million / year 6 6 7 7 8 8 9 9 0 0 '0 '0 '0 '0 '0 '0 '0 '0 '1 '1 1 3 1 3 1 3 1 3 1 3 Q Q Q Q Q Q Q Q Q Q -6- Proprietary & Confidential to Acceval
  • 7. Acceval creates Success for your business at your pace Pricing & Margin Management / Optimisation Continuum Pricing & Margin Management Price Optimisation (Foundation) (Advanced) Value Creation ($) Deal Execution Pricing Analytics Price based on Customer Value Quick Win (Value Pricing) Improve Negotiated Improve Pricing Reduce Unwarranted Price / Margin Policies & Cost to Optimise Bid Price / Discount / Serve List Price Inconsistent Pricing Enhance Price Differentiation Improve Business “Optimise” Product (Segmented Pricing) Mix / Service Offerings Pricing Capabilities Continuum While Acceval covers the whole spectrum of pricing capabilities, most companies will start with Pricing & Margin Management areas -7- Proprietary & Confidential to Acceval
  • 8. PriXLence™: Acceval’s flagship Pricing & Margin Management solution for Business To Business Industries 1 Deal Execution (List Price / Policy Management, Quotation Management) 2 Pricing / Profitability Analysis, Segmentation, Competitive Intelligence 3 Value Pricing / Price Optimisation -8- Proprietary & Confidential to Acceval
  • 9. Value Proposition for Pricing Transformation enabled by PriXLence™ Compelling Business Benefits : Typically 1-3% of Revenue / year Company with 100 mil revenue / year 1-3mil benefits / year Value Drivers Benefit Sources Improve Offer Price to Customer Achieve Better Negotiated Price / Margin Revenue Reduce Unnecessary Discounting Enhancement Enhance contract compliance Improve Capture of Market Price Trend Earnings After Opportunities Capital Costs Improve Product / Customer / Channel / Market Mix Cost Reduce Costs To Serve, e.g. Reduction – Supply Chain costs – Customer Support / Service costs – Channel costs Working Capital Reduce Working Capital Requirements Reduction (payment terms / inventory) -9- Proprietary & Confidential to Acceval
  • 10. Pricing Management solution enables your Pricing Strategy Empower and Enable People Policies and Processes Clear price setting/discount policies/rules Empower to quote and negotiate deals Clear approvals process/authority Incentives to promote lower discounts, shorter payment terms Pricing done globally or in-country Pricing Management Systems Analyze Control and Measurements Constant efforts to quantify each offering to each target market Controls on undeserved discounts Co-Relation of Offer Prices /Volume Reviews of previous discounts Co-Relation of Offer Prices/Market Control on Cost-to-Serve factors - 10 - Proprietary & Confidential to Acceval