Using ABM to Make Strategic Decisions

Costs by product, channel, division, and unit provide a clear picture of the monetary value of these dimensions to your business. These costs are valuable metrics for evaluating Strategic Alternatives and developing scorecards for performance. They can be used to compare the baseline to projected costs of an SA. More focused data on the cost structure and the potential changes that may occur with new initiatives makes you a better decision maker. A more realistic view of the costs associated with product launches may be the deciding data point between a joint venture and de novo entry. The de novo cost may be significantly higher after general and administrative costs are driven into the launch assessment. You also have the ability to measure the results of the implemented decision against your initial baseline for a clearer picture of the performance of the Strategic Alternatives. You can evaluate the performance of the SA against the alternative selected.