DISTINCTIVES: VDDW Distinctives   >   Overview

  • The VDDW is not merely a GL datamart or BI point solution. It is distinct in the following ways:
    • 1. It provides a dynamic view of the corporate P&L, all the way to the net operating level, even, if desired, to the level of economic profit (NOPAT less capital consumed times cost of capital), analyzable by any dimension (or combination of dimensions) of interest, including customers, suppliers, products or services, and channels, down to each and every transaction.
    • 2. It decomposes the P&L into an itemized list of all the underlying business processes that roll up and contribute to a given line of income or expense, as well as the drivers of that process’s performance, for any slice of the business, even down to the transaction.
    • 3. It reveals capacity constraints or excesses, and how well the enterprise leverages both its expense-inducing and revenue-generating corporate resources, in the service of every product, partner, channel, or any other dimension of interest.
    • 4. It provides complete, ad hoc traceability back to the GL, allowing dynamic analysis of fixed & variable expense consumption along any axis of interest.
    • 5. Perhaps most importantly, it schematically unites financials with operational data and business processes in such a way that all silos within the company share a common vocabulary and framework for measuring performance. It is the data bedrock for CPM (Corporate Performance Management).
  • In short, the VDDW approach illuminates corporate financials from an operational perspective, and, in a way no other solution quite can, exposes the who, what, when, where and why behind the enterprise P&L and how to improve it.
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    • About the Diagram

  • The above diagram is a visual way of comparing the VDDW to other related approaches so as to better understand what makes it distinct. Along all the axes of comparison depicted the VDDW rates well. (To learn more about what each section of the diagram means, and why VDDW rates well in that area, explore the links to the right.)
  • Beginning at the top of the diagram and moving around clockwise, you progress along a gradual continuum from the financial / analytical domain, to the broader organization, and finally, to the technical.
  • In reality, while each sector of comparison is separate, they do in fact inform one another in multiple ways. A solution that is not easy to use will not foster deep analysis, for speed is critical to the analyst. If deep analysis can’t be performed, accuracy is doubtful. If accuracy is doubtful, organizational reception will be tepid, etc.