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Understand where value is being created, maintained, and destroyed in every corner
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View value by numerous different user-defined dimension combinations
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Determine if the digital delivery channel is truly creating value and how much
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Enhance current profitability and planning systems with drivers tied to benchmarks
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Forecast staffing needs and costs based on projected product volumes
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Determine ROI on proposed marketing promotions
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Make marketing decisions to promote profitable products
Multidimensional Value Assessment (MVA) is Kohl's flagship service. It is a significant extension of Kohl’s Product Value Assessment (PVA), the MVA takes the balance sheet product level information from the PVA and drives it down to the individual loan and deposit level. This enables users to "slice and dice" profitability using Kohl-supplied OLAP reporting or the Business Intelligence tool of their choice.
MVA is a critical tool in today's environment as executives consider potentially transformational decisions. It can show executives what is currently working (i.e., creating value) and not working in the organization. Many organizations are considering expanding their digital footprint and, MVA can show whether the current digital channel is creating the value you think it is.
With this knowledge, executives have a far better understanding of where the organization currently stands so they can make prudent decisions that enhance the good and avoid, minimize, or fix the bad. As management guru Peter Drucker and others have said, "If you can't measure it, you can't manage it."
MVA is not just a fancy new way of seeing old results. Each dimension (i.e., product, channel, credit tier, etc.) is assigned revenue and cost related to that dimension. MVA enables executives to see where value is being created or destroyed in previously immeasurable corners of the organization.
Our Product Value Assessment (PVA) provides a complete picture of the value contributed by loan and deposit products. We work closely with functional areas and data providers to create a customized product value model based on your unique operations utilizing loan, deposit, and core transaction data as well as your organization's financials. In addition, our customized Employee Cost Assessment identifies which employees are spending time on specific activities by product. This allows management to understand the employee operational costs per product. Employee costs are key as they are often half of all costs. If you don't know where employees are spending their time you can't understand what it costs to deliver your products.
We now include the Product Value Simulation Model (PVS). The PVS facilitates the development and testing of product-related strategies such as evaluation of marketing proposals and development of new products using the numbers from your previous Product Value Assessment. This tool allows you to quickly update important value information between Assessments.
Non-maturity deposits (NMDs) are an important source of funding for financial institutions. However, they present a challenge because they do not have a fixed term, can be withdrawn at any time, and are administered rate instruments. With the recent volatility in interest rates, it has come to our attention that NMD duration calculations have failed to produce representative value changes for Interest Rate Risk (IRR) purposes. In researching the cause of this, Kohl discovered that many consulting firms misunderstood how NMDs behave. This misunderstanding did not surface until the recent interest rate volatility exposed the issue.
To address this issue Kohl Analytics Group has developed a Deposit Value Assessment (DVA). The DVA can be completed as a stand-alone assessment or in conjunction with our Product Value Assessment (PVA) or Multidimensional Value Assessment (MVA).
Our FTP service is a detailed instrument-by-instrument analysis with multiple FTP methodologies depending on the characteristics of the loan or deposit. Our service costs a fraction of purchasing commercial software and hiring expensive analysts.
(Stand-Alone or Complimentary Solution)
A fast, "mini" service that determines product profitability based on a combination of your financial data and standard cost information from recently completed Full Assessments in our database. It is excellent for companies that want to start small and grow into the more customized and detailed Full Assessment
Our clients have also used this Assessment as an audit of their internal profitability system.
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11312 East Beryl Ave
Scottsdale, AZ 85259
(602-793-3534)