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ISE 517 – The Modern Enterprise System Class Introduction

ISE 517 – The Modern Enterprise System Class Introduction. Erich Kreidler. SESSION CHECKLIST. The Five Elements of Business Acumen (Ram Charan ) Cash Margins Velocity Growth Customer Adding/dropping. OUR AREAS OF ANALYSIS. Execution Capabilities. Innovation

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ISE 517 – The Modern Enterprise System Class Introduction

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  1. ISE 517 – The Modern Enterprise SystemClass Introduction Erich Kreidler

  2. SESSION CHECKLIST • The Five Elements of Business Acumen (Ram Charan) • Cash • Margins • Velocity • Growth • Customer • Adding/dropping

  3. OUR AREAS OF ANALYSIS Execution Capabilities • Innovation • Corporate social responsibility • Globalization • And more….. Customer Cash Growth Margins Velocity Create Blue Oceans Business Acumen Macro Trends

  4. Thinking like the street vendor…

  5. “Money-Making Model” AnalyzerSource: Franklin Covey Leadership Training

  6. RO (I, A, E, etc) • Definitions: • Investment • Assets • Return = Margin * Velocity • Example • Given a company with 5% GPM, $2B in assets, $5B in investments, $1B in equity and $10B in sales  Calculate ROI, ROA, ROE

  7. Understanding your business acumen • What were your company’s sales last year? • Is the company growing? • Is the growth flat or declining? • By how much and why? • Is this sustainable? • What is your company’s profit margin? • Is it growing, declining or flat? • Do you know why? • How does your margin compare with your competitors? • How does it compare with other industries?

  8. Understanding your business acumen • What is your company’s inventory velocity? • What is your company’s return on assets? • Is your company’s cash generation increasing or decreasing? Why? • Is your company gaining or losing against the competition? • How do you know? • What is your contribution to all of the above?

  9. Next Class Case Study #1:

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