Business Analysis (Opportunities)

The Business Potential tab is great for looking at your potential accessible (opportunity) revenue and volumes coming from the Salesforce.com pipeline. It allows a view of your ramp up/forecast for potential business. This is done through several indicators on the page:

The Expected/Weighted button will allow users to see the Business Potential with or without taking the Probability Rate into consideration in the calculations.

Business Potential:

This graph shows the ramp up/forecast of the opportunities with several available dimensions: Region, Market, Segment, Customer Classification, Strategic Segment, Manufacturing Plant, Business Potential Year, Group of Activity (BU), and GBU Segmentation 1, 2, and 3. Available indicators on the graph are Revenue, Volume, and Contribution Margin. There is also a split of the data between qualified product and product requiring qualification.

Expected Yearly at Maturity:

"Expected Yearly at Maturity" is the volume and Revenue expected to sell at the maturity of each opportunity (not ramp up).  There is no time period selection for this indicator as it simply shows the yearly figures at maturity.  

The Funnel:

The funnel on the right allows users to view the opportunity data by Revenue, Volume, Contribution Margin, or # of Opportunities (use the cyclical as indicated below to change indicators. Also, this funnel can be viewed by probability or stage dimensions. At the top of the funnel are the totals based on your current filter selections.

Expected Yearly Details:

This table gives us details of the opportunities in the indicators above. See the picture below for short descriptions of each field:

Below are examples of some of the calculations used for Expected business potential:

Expected Business Potential Calculation:

• Expected Full Business Potential Volume =  Sum of all years of Business Potential Volume eg. from 2018 to 2022 (10 + 20 + 20 + 20 + 20).

• Expected Yearly Margin (K€) = Expected Yearly Volume x Target Unit Price per UoM x Contribution Margin (%) = (20 x 5300 x 22.6%).

• Expected Full Business Potential CM (K€) = Sum of all years of Business Potential Margin Amount eg. from 2018 to 2022 (11,978 + 23,956 + 23,965 + 23,956+ 23,956)

• Expected Business Potential Margin per Unit (€/unit) = Sum of all years of Business Potential Margin amount / Sum of all years of Business Potential Volume (108/90)

• Expected Yearly Margin per Unit (€/unit) = Expected Yearly Margin (K€) / Expected Yearly Volume (24/20)

Below are examples of some of the calculations used for Weighted business potential:

Weighted Business Potential Calculation:

• Weighted Yearly Volume = Expected Yearly Volume x Probability = (20 x 20%)

• Weighted Full Business Potential = Expected Full Business Potential Volume x Probability (90 x 20%)

• Weighted Yearly Margin (K€) = Expected Yearly Margin (K€) x Probability (24 x 20%)

• Weighted Full Business Potential CM (K€) = Expected Full Business Potential CM (K€) x Probability (108 x 20%)

• Weighted Potential Margin per Unit (€/unit) = Sum of all years of Weighted Business Potential Margin amount / Sum of all years of Weighted Business Potential Volume (22/18)

• Weighted Yearly Margin per Unit (€/unit) = Weighted Yearly Margin Amount / Weighted Yearly Volume (5/4)

Below are reference screen shots taken from Opportunities in Salesforce:

Screens taken from CRM SalesForces (Opportunities):