Business problem:
- Develop a transaction pricing model for current and future back-office operations and benchmark transactional price
- Drive behavior to improve productivity
Solution Approach:
- Identify exclusive work items; based on operational and customer imperatives
- Identify standardized business inputs and outputs, process duration and repeatability
- Identify direct/ indirect cost elements attributed to each transaction and build cost allocation framework.
- Baseline volumes, productivity, resource requirements and service levels and build cost element apportionment framework (fixed and variable cost)
- Cost element allocation to transaction type/s
- Define rate cards, dead bands and volume/ SLA adjustment mechanisms
- Create comprehensive model to build transaction pricing
Key Outcome and benefits:
- Working model for transaction pricing with clearly defined inputs, outputs and assumptions
- Mechanism for identifying areas where improvement and cost take-out can be achieved
