REX (ROIC Enterprise Transformation) support service to achieve management reforms while improving ROIC

To enhance profitability, our clients are required to focus on restructuring their business portfolios.
Against this backdrop, Return on Invested Capital (ROIC), which measures the profitability of capital within each business, is becoming a widely used and disclosed indicator.
However, there are cases where ROIC-based management control has not remained unclear to on-site staff due to such issues as the barrier between corporate (management) and business divisions (front line), siloed analytical data, and a lack of personnel to facilitate the involvement of diverse stakeholders.
Based on its knowledge and track record developed from numerous enterprise transformations, ABeam Consulting provides Reverse ROIC Tree Building, Data Analysis Platform Building, and Self-Service BI Deployment Support Services to aid enterprise transformations to improve ROIC.

Capital markets are becoming increasingly globalized, and investors tend to prioritize capital efficiency and the return on investment rate rather than only focusing on quantitative references like sales and profit.
ROIC is a key metric for investors to check whether the capital profitability of each business exceeds the cost of capital, and whether the business demonstrates a competitive advantage compared to competitors.
An increasing number of companies, led by their corporate planning divisions, disclose ROIC targets and results in external documents, such as medium-term management plans.

The most difficult thing about ROIC management is embedding ROIC-based management control to on-site staff. To feed ROIC-based management control into on-the-ground operations, a deep knowledge of creating KPIs, as well as  business operations and systems, is essential.
It is important to analyze KPI that impact ROIC and have a shared awareness of goals between divisions. It is also vital to hold discussions between divisions based on the same data and develop talent that can take action in a timely manner.
ABeam Consulting helps embed ROIC management by engaging all levels from top management to the front line and designing operations and systems with an organization-wide perspective focused on overall optimization.

There are many cases where companies struggle to entrench ROIC-based management control. This is because solely creating an ROIC tree of just financial indicators makes it hard to link daily on-site tasks and improvement activities, making it difficult to foster a sense of ownership.  This service helps clarify the impact on-site measures and activities in each business have on financial indicators. It also enables discussions to be had from the same perspective regarding what initiatives management and businesses should implement to improve financial indicators. 

To achieve data-driven ROIC management, there is a need for data, which acts as the foundation, to be provided sufficiently in a timely and reliable manner. This service supports the building of an optimal data analysis platform tailored to the unique challenges of each client company.

With drastic changes in the business environment, the development of talent that can utilize data by non-IT systems division members is key to continued functioning of the ROIC management process. This service provides guided support to enable the employees of our clients to be able to analyze and take actions themselves through learning to use and create BI.