understanding the metrics and using them to guide the business. David Dean uses the benchmarks as a starting point in the planning process as well as analysis or various business units. "We look at what companies our size, type & growth profile are doing. he team uses the benchmarks to guide investments in the strongest parts of the business and hone in on areas for improvement, aiming to drive revenue growth and greater efficiency at the same time. KPIs BENCHMARKED REGULARLY BY MANAGEMENT TEAM Revenue per FTE on trailing 12-month basis Company growth rate CAC Lifetime value of a customer Gross & Net Customer Retention Recurring Revenue gross margins Employee turnover "Our CFO, in particular, likes to see that companies which are similar are spending 'x' amounts in certain areas, or have a certain headcount compliment, or that they are investing in an area that has been proven to drive performance". The financial team using the OPEXEngine Benchmark Engine ™ is able to review similar companies in terms of revenue and business model. It can also look at cohorts for market leaders. "It is helpful to look at similar size companies, sometimes similar deal sizes, sometimes public companies or certain growth rates. The OPEXEngine benchmarks give Dean and the management team confidence to anticipate the hiring and investment decisions necessary to keep their growth on track. "The benchmarks help us to better understand the business, how different areas are performing and how to guide investment." Using the Benchmarking Platform Beyond the Budgeting Process Dean describes how the management team may focus on different issues throughout the year. The team may be digging into Customer Acquisition Cost (CAC) deeply, to compare themselves against various types of companies. Or, recently, the company reexamined their hosting infrastructure. They used OPEXEngine's hosting expense benchmarks to compare fees paid by similar sized growth companies. Other operational issues come up throughout the year which require comparisons to benchmarks as the company is continually evaluating how they can improve the business and manage fast growth. OPEXEngine's partnership with Adaptive Insights makes it easy to incorporate their benchmarks into Adaptive's solution and provide context in the planning process. Adaptive Insights users can compare their metrics to companies of similar or different size or stage of development for a range of both public and private companies with OPEXEngine's benchmarks, which Dean has found incredibly useful when planning and analyzing growth scenarios. In short, Intelex uses OPEXEngine's SaaS benchmarking, together with Adaptive Insights budgeting and planning solution, to reduce risk in resource allocation decisions, helping the management team to move quickly on operational challenges and making it one of Canada's fastest growth SaaS companies.

understanding the metrics and using them to guide the business. David Dean uses the benchmarks as a starting point in the planning process as well as analysis or various business units. "We look at what companies our size, type & growth profile are doing. he team uses the benchmarks to guide investments in the strongest parts of the business and hone in on areas for improvement, aiming to drive revenue growth and greater efficiency at the same time. KPIs BENCHMARKED REGULARLY BY MANAGEMENT TEAM Revenue per FTE on trailing 12-month basis Company growth rate CAC Lifetime value of a customer Gross & Net Customer Retention Recurring Revenue gross margins Employee turnover "Our CFO, in particular, likes to see that companies which are similar are spending 'x' amounts in certain areas, or have a certain headcount compliment, or that they are investing in an area that has been proven to drive performance". The financial team using the OPEXEngine Benchmark Engine ™ is able to review similar companies in terms of revenue and business model. It can also look at cohorts for market leaders. "It is helpful to look at similar size companies, sometimes similar deal sizes, sometimes public companies or certain growth rates. The OPEXEngine benchmarks give Dean and the management team confidence to anticipate the hiring and investment decisions necessary to keep their growth on track. "The benchmarks help us to better understand the business, how different areas are performing and how to guide investment." Using the Benchmarking Platform Beyond the Budgeting Process Dean describes how the management team may focus on different issues throughout the year. The team may be digging into Customer Acquisition Cost (CAC) deeply, to compare themselves against various types of companies. Or, recently, the company reexamined their hosting infrastructure. They used OPEXEngine's hosting expense benchmarks to compare fees paid by similar sized growth companies. Other operational issues come up throughout the year which require comparisons to benchmarks as the company is continually evaluating how they can improve the business and manage fast growth. OPEXEngine's partnership with Adaptive Insights makes it easy to incorporate their benchmarks into Adaptive's solution and provide context in the planning process. Adaptive Insights users can compare their metrics to companies of similar or different size or stage of development for a range of both public and private companies with OPEXEngine's benchmarks, which Dean has found incredibly useful when planning and analyzing growth scenarios. In short, Intelex uses OPEXEngine's SaaS benchmarking, together with Adaptive Insights budgeting and planning solution, to reduce risk in resource allocation decisions, helping the management team to move quickly on operational challenges and making it one of Canada's fastest growth SaaS companies.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Discuss the different approaches to benchmarking Intelext carried out for their organization benchmarking process and give appropriate examples from the case study?

[Case study in the given pictures]

Transcribed Image Text:understanding the metrics and using them to guide the business. David Dean uses the benchmarks as a starting point in the planning process as well as analysis or various business units. "We look at what companies our size, type & growth profile are doing. he team uses the benchmarks to guide investments in the strongest parts of the business and hone in on areas for improvement, aiming to drive revenue growth and greater efficiency at the same time. KPIS BENCHMARKED REGULARLY BY MANAGEMENT TEAM Revenue per FTE on trailing 12-month basis •Company growth rate CAC Lifetime value of a customer Gross & Net Customer Retention Recurring Revenue gross margins Employee turnover "Our CFO, in particular, likes to see that companies which are similar are spending 'x' amounts in certain areas, or have a certain headcount compliment, or that they are investing in an area that has been proven to drive performance". The financial team using the OPEXEngine Benchmark Engine TMIS able to review similar companies in terms of revenue and business model. It can also look at cohorts for market leaders. "It is helpful to look at similar size companies, sometimes similar deal sizes, sometimes public companies or certain growth rates. The OPEXEngine benchmarks give Dean and the management team confidence to anticipate the hiring and investment decisions necessary to keep their growth on track. "The benchmarks help us to better understand the business, how different areas are performing and how to guide investment." Using the Benchmarking Platform Beyond the Budgeting Process Dean describes how the management team may focus on different issues throughout the year. The team may be digging into Customer Acquisition Cost (CAC) deeply, to compare themselves against various types of companies. Or, recently, the company reexamined their hosting infrastructure. They used OPEXEngine's hosting expense benchmarks to compare fees paid by similar sized growth companies. Other operational issues come up throughout the year which require comparisons to benchmarks as the company is continually evaluating how they can improve the business and manage fast growth. OPEXEngine's partnership with Adaptive Insights makes it easy to incorporate their benchmarks into Adaptive's solution and provide context in the planning process. Adaptive Insights users can compare their metrics to companies of similar or different size or stage of development for a range of both public and private companies with OPEXEngine's benchmarks, which Dean has found incredibly useful when planning and analyzing growth scenarios. In short, Intelex uses OPEXEngine's Saas benchmarking, together with Adaptive Insights budgeting and planning solution, to reduce risk in resource allocation decisions, helping the management team to move quickly on operational challenges and making it one of Canada's fastest growth Saas companies.

Unit 8 – Benchmarking Analysis case study - IN TELEXT
Intelex, a Canadian-based global leader in Environment, Health, Safety and Quality (EHSQ)
Saas, with offices in Toronto, Denver, and the UK. It uses OPEXEngine's Saas
Benchmarking platform, BenchmarkEngine TM, together with Adaptive Insights budgeting
and planning solution to drive operational analysis enabling fast growth. Intelex has grown
to 500 employees with global offices and over 30 percent growth in 2017 to become one of
the fast growth Saas companies in Canada. With over 1,100 clients and 1.5 million users
worldwide now, benchmarking guides resource allocations and operational decisions at
Intelex. David Dean is Intelex's VP of Financial Planning & Analysis and uses PEXEngine's
benchmarking platform for:
Budgeting and planning 1– 5 years out
Getting the management team on the same page about relative KPIS
Driving operational change and efficiencies throughout the organization
Building resource allocation business cases for the CEO, CFO, & executive team
Before using OPEXEngine's benchmarking platform together with Adaptive Insights,
Intelex faced several challenges scaling their organization:
• Transitioning the organization from a small company structure to a fast
growth, global competitor
Implementing financial and operational systems to dynamically manage
budgets and planning
• Getting the management team alignment in terms of key metrics and targets.
Intelex needed to transition from a small company structure to drive more
sophisticated business decisions and move more quickly.
The management had to evolve the organization in order to scale it both operationally and
financially. The financial team began benchmarking as a way to guide the conversation:
"How do we drive best practices and become a world class organization with data and
research? ". Initially, the Finance team started with some publicly available surveys, but
quickly found they needed more depth and different company cohorts to compare
themselves against as they expanded. Looking for a comprehensive set of data about
public and private companies, Dean discovered the OPEXEngine BenchmarkEngine. Since
he started using the proprietary benchmarks, Dean has sharpened and focused the
budgeting and planning process. Intelex drove more than 30% revenue growth in 2017.
Executive Management now makes decisions with a higher degree of confidence
The finance team shares benchmarking analysis with operating executives on a regular
basis. With confidence to make critical decisions based on credible data about itself, its
peers and aspirational companies, Intelex has been able to take a deeper look at their
organization. One of the great benefits of sharing the benchmarks with the management
team regularly is that it is now a two-way street where Finance and senior management are
both pushing to be more data driven. The management team have really taken to

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