Analytics
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Tools for a Fractional CFO, Bunker vs. Reach Reporting for FP&A and Accounting
This year, I launched a Fractional CFO Services business. As part of my effort to steam line the financial reporting at my clients, I started using a software platform called Bunker, an innovative software company that provides great software for a Fractional CFO driving FP&A reporting, among other things. In order to settle on Bunker,… Continue reading
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Wondering about machine learning in your efforts? Let’s talk the basics about Random Forest and XGBoost.
The business generalist or expert in a specific aspect of business operations might wonder about machine learning and data science. Random Forest and XGBoost are two techniques that are related and commonly used in business predictive modeling. I want to give you some basics for these frequently used techniques so you can be sharp enough… Continue reading
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LCV is for client unit economics, True Profitability is for product unit economics and another approach to drive value in your SaaS business.
Living in a SaaS world, we are often focused on LCV (Lifetime Customer Value) for a critical unit measurement of profitability. But, it’s also important to understand your product unit economics. True Profitability, a term and methodology developed by Pedro Ferro and described in his book by the same name, determines the specific unit economic… Continue reading
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Can I pay you to stop using TikTok? Or, will you pay to stop your whole friend group from using TikTok?
Is social media a product status trap? What is the price to stop using TikTok? This week is a little turn away from my typical analytics discussion. We are going to talk about product economics and how consumers get value out of social media. While reading, you can ask yourself questions about the products in… Continue reading
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Managing a Loan Portfolio with Great Analytical Tools
Partnering with Vector ML Analytics, my team transformed our consumer loan portfolio’s financial reporting, emphasizing advanced analytics for precision and efficiency. This collaboration covered data integration and deployment, improving reporting through automation, resulting in speed, accuracy, cost savings, and better decision-making. Our enhanced reporting capabilities now include detailed asset and liability insights, weekly cash flow… Continue reading
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Recurring revenue modeling can be tricky, using cancellation curves can improve precision and results
In a recent post on SaaS financial modeling, I covered some of the main drivers that play a role in the construction of financial forecasts for SaaS and related business models. One of the most important aspects of such financial forecasts is the build out of contracted revenues. In general contracted revenues can be quite… Continue reading
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Key considerations for SaaS (or any recurring revenue) financial models
Build your components so the are easily expandable in time and detail In SaaS, decoding revenue dynamics is pivotal for pushing the business forward. Let’s talk about the elements of financial modeling tailored for SaaS companies: 1. Revenue Insights: MRR (Monthly Recurring Revenue): This quantifies the predictable monthly revenue, offering immediate insights into short-term revenue… Continue reading
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Unlocking Value Creation: The Power of Lifetime Customer Value in Operational Execution
You might see it in various places as CLV (Customer Lifetime Value) or LTV (Lifetime Value). Lifetime Customer Value, or LCV, is what I call this metric. Fairly interchangeable in my experience, people who use these metrics regularly will know what you mean when you refer to any one of them. LCV’s compact measurement of… Continue reading
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Elevating Data Science with Operations Research Expertise
Introduction Who’s on a quest to develop advanced data science capabilities? One of my analytics team’s strategic expansion brought together diverse talents in statistics, applied math, and engineering. This case study explores the integration of operations research, fostering collaboration and knowledge diversity within analytics. Objective Our primary goal was to blend diverse skill sets, creating… Continue reading
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How We Replaced an Implementation of Workday Adaptive Enterprise Planning Management with Microsoft’s PowerBI Tailored for FP&A Reporting
Excel’s powerful capabilities, integrations and flexibility make it a favored tool for all financial and accounting professionals. Like many middle market companies, we considered moving from an Excel dominated financial planning and reporting process to an “enterprise grade” solution. A very difficult decision, we set aside Excel for a unified financial planning tool, also known… Continue reading