Customer Route to Market

 Customer Route to Market

 

 

Customer Validity and Integrity of the Information

The legal evidence of arrangement between two companies prescribes the way changes must be managed and whom at your customer has the authorization to authorize a change.

customer records are managed, with a unique super user group including cross-functional approvers like the credit or invoice leaders, legal contract administrators and ERP Master Record Administrators from Finance. 

Record Retention - Audit Worthy Records Zero Data Loss

Each revenue transaction must be managed and monitored for the executive assurance, each record must be retained with zero data loss.

Governance

Each reporting period the CEO and CFO sign personal assurances that all transactions reported have met the legal and fudiciciary criteria outlined in Sarbane's Oxley 2002 Act. 

 

Income and Expenses reporting accuracy-a companies performance and market position are established based on the reports submitted for income and expense statement reporting.  

 

Decisions made by group consensus or Governance Councils may satisfy internal cultural considerations or internal political pressures, the desicions made do not protect the executives physical safety from being jailed or imprisoned and assessed a penalty. 

 

Myth

Risk Management Portfolio

Director and Officers Insurance covers the executives if any errors or ommissions surface.  

Fact

The reality is the decision made by a group does NOT justify or excuse the executives and board from any legal liabilities.

• DNO insurance covers the penalties or fines assessed.  
• There is no insurance to protect an executive from being imprisoned

Potential Threats 

If any customer master record was alter in a backend procedure, we must understand that the revenue must be excluded.   

 

Begin with the following technologies/tools

• Extract, Transform and Load (ETL) or integration technologies
• Data Quality Technologies - Cleansing processes specifically and profiling redundent data  
• Replication Technologies

An exclusion of all transactions of the before mentioned type must be stated as an exclusion from revenue on the reported income statements.

 

Typically a line noted and reported as non-GAAP revenue. The transaction is point in time event, not a rule nor a justification to change the customer master records.

Myth

Management "create, read, update and archive" versus Transaction "event records".    

• A transaction event record never prompts a change to the master record.

Segregation of Duties - Create Master Records versus Transaction Records

In addition to managing IT administrator access the requirement must manage the business segregation of duties between those who create, update and authorize both read and archive and the users who are involved with any part of the revenue transaction system.  

Governance

Even a crowd decision making process isnt going to remove the companies legal liabilities with regard to how a company manages customer information. There are at least 2 regulations at the international and 10 or more within industrialized countries.

The employee must have the span of control and a thorough understanding of each customers legal evidence of arrangement.

Service provider

RTM "routes to market" (avoid double counting)

ie..., Federal, Financial, Social Media and Retail

 

Provides a repeatable and generic way to pass through "all" build order transfer models. The middle lane, has a dependency on point of sales (figuratively by choice) models.

In these routes to market, your companies liability ends, the financial company becomes your customer and the end customer relationship should transfer.

Build order transfer

The ability to clearly distinguish accountability and manage both cost and liability at the decision point when a customer decides finance through your lender rather than their own financial investment company.

A key point in any resale or channel model infers a significant discount to the resale organization to buy and resell your offers, generally the reseller has attained a certification proving a mutually rewarding supply chain relationship.

If the seller carries the inventory, the risk and all other administrative burdens and overhead. The value of the resale has diminished and becomes purely overhead for any business.