The need for speed in the product development arena is driven by intense global competition
Austin, TX (PRWEB) September 8, 2009
Zilliant, the leading provider of price optimization and margin management solutions for B2B manufacturers, distributors, high-tech, and industrial service companies, today announced it has received a 2009 Innovation Insight Award for Best Innovative Process by Manufacturing Business Technology Magazine (MBT). Zilliant's price optimization and analytics solutions were recognized for its ability to help a leading building products manufacturer inject discipline into its pricing processes that vastly improved margins within a six-month timeframe, as compared to prior ongoing traditional practices.
In conducting a Six Sigma review, the building products manufacturer discovered that its pricing process was complex, poorly understood by its workforce, and ulti-mately relied on heavily undocumented "tribal knowledge." This resulted in sales-people offering customers a broad range of prices on similar products, with as many as 50 percent of sales orders transacted below lowest-approved prices.
By analyzing the manufacturer's historic sales and order data, Zilliant's solution identified roughly 6,000 price segments. For each of these price segments, the solution produced a range of five price points: start, target, discount, deep discount, and floor. A control group of the company's sales representatives was instructed to use these price points when negotiating with customers, while the remaining sales staff conducted business as usual. Six months later, the group using Zilliant price points had substantially increased its margin contribution relative to those working as usual. More results on the implementation can be read in Zilliant's newsroom.
Each year, MBT bestows Innovation Insight Awards on companies from both the IT vendor and user communities that demonstrate creative use of information technology to solve real business problems.
Sidney Hill, executive editor of MBT, said this year's winning entries all, in one way or another, attacked the most pressing issue facing the manufacturing sector today: the need to get new cutting-edge products to market as fast as possible.
"The need for speed in the product development arena is driven by intense global competition," Hill said. "And we saw that same level of competition among our in-novation award entries. Virtually every product or project submitted was worthy of some sort of recognition. That made things extremely difficult for our judging panel. In the end, however, we believe we selected the ones that best exemplified MBT's ongoing mission of helping manufacturers understand how to use information technology to creative a competitive advantage."
Zilliant has been recognized in the Manufacturing Business Technology Top 40, Supply & Demand Chain Executive 100, Red Herring 100, Red Herring 200, and the prestigious Deloitte Texas Technology Top 50.
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Zilliant is the leading provider of price optimization and margin management solu-tions for B2B manufacturing, distribution, high-tech, and industrial service companies. Zilliant uses existing transactional data to improve decisions across all facets of price analysis, price setting and execution. Zilliant helps companies achieve the best pricing possible on every deal, agreement, and price list, increasing profits by tens of millions of dollars. Headquartered in Austin, Texas, Zilliant is a privately held company. Investors include Austin Ventures, Cardinal Ventures, Panorama Capital, and Trellis Partners. For more information contact Zilliant at 877.893.1085 or visit http://www.zilliant.com.
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