Cost-Structure Analysis
Summary
Booz Allen employs cost-structure analysis as a method for tracking and analyzing expenses by line item, program and head-count and transforming data into a structured analytic framework to provide the appropriate level of analysis for key decision makers.
Understanding the Analytic Environment
An organization must first transition to an analytics-driven strategy to incorporate a competitive advantage for the Enterprise. Enterprise analytics employs cost-structure analysis to provide a decision-making structure in order to optimize the analysis. The ability to respond with agility to analytical insights is vital to the organization’s cost-structure analysis.
Harmonization Assessment
The purpose of the harmonization assessment is to align all internal and external data sources. The discrepancy among different data sources is a challenging factor for organizations attempting to synchronize business operations. Harmonizing data requires developing specifications for tracking and analyzing internal and external data sources and ensures consistent data analytics that are useful throughout the organization.
Defining the Decision Framework
Defining the decision framework and understanding the transformation of the data follows the harmonization assessment process and is based on the type of analysis needed for the identification of key decisions management is trying to affect. The framework analysis will demonstrate how to redesign and consolidate data into a cost element structure. Recommendations are formulated based on the major deltas, similarities, and differences in data and identification of key decisions.
Structure Framework
Booz Allen will develop an organization’s cost element structure based on established analytics, harmonized data, and developed recommendations. The structure employs an analytically rigorous methodology to identify an organization’s operating and financial pain points and is flexible to future modifications based on new analytical insights. The cost element structure enables rapid analysis along the spectrum of analysis.
