SOURCE: Maxager

December 18, 2006 11:04 ET

Maxager Technology Predicts New Trends in Approaches to Corporate Profitability

SAN FRANCISCO, CA -- (MARKET WIRE) -- December 18, 2006 -- Maxager Technology, the original provider of velocity-driven enterprise profit optimization solutions, today announced its predictions for 2007.

According to Michael Rothschild, Founder and CEO of Maxager, "We see the combination of the competitive environment, the availability of data and the emergence of targeted business intelligence (BI) applications providing a new route to profitability improvement."

Based on feedback from customers, partners and industry experts, Maxager sees the following specific trends emerging:

--  Increased global competition and the resulting pressure on prices is
    driving initiatives in Corporate Performance Management (CPM). In
    manufacturing industries such as metals and chemicals, the increase in
    offshore capacity requires even greater efficiency in operations in order
    to maximize profits.  The growth in the CPM market is solid evidence of
    corporations' desire to find innovative ways beyond the traditional
    management of margins and costs to optimize profitability.
--  Manufacturers are seeking greater use of the data that they now have
    available, especially as a competitive weapon. The growth in CPM efforts is
    also driven by the greater availability of data within organizations.
    Having spent millions of dollars in enterprise systems to capture sales,
    cost and production data, manufacturers are looking for ways to use this
    data to increase efficiency, compete more effectively and thereby increase
--  Applications which target specific challenges are emerging to extend
    the use of business intelligence in the enterprise.  While BI tools have
    provided strong value to organizations in being able to analyze the wealth
    of historical data now available, new BI applications can address specific
    challenges such as the combining of margin and production velocity.
"Over the past several years, we have seen increasing interest on the part of manufacturers to combine margin and production run-rate data to make key everyday decisions on product, customer and asset mix," added Rothschild. "Being able to do this yields a metric we call Profit Velocity. This metric is directly analogous to Return on Assets (ROA), the metric most of interest to shareholders. Using ROA at an operational level allows manufacturers to squeeze more profits out of the organization."

The competitive environment along with the availability of data and CPM/BI applications to utilize it are driving more precise efforts to improve profits.

About Maxager Technology

Founded in 1996, Maxager's patented enterprise profit optimization (EPO) solutions help leading chemicals, metals, electronics and other complex manufacturers such as Dow Chemical Company, Owens-Illinois and Siliconware Precision Industries increase cash and profit worth 3-5% of revenue. Uncovering profit gain opportunities that are obscured by traditional "margin only" analysis, Maxager uses both margin and production velocity information to analyze history and generate realistic forward modeling that provides management teams an entirely new level of control over Return on Assets (ROA) -- the key driver of shareholder value.

Ideal for manufacturers with a wide range of products, customers and assets, Maxager's unique technology calculates precisely how fast each product, customer, or market generates cash and profit from the assets, allowing managers to truly optimize product mix & customer mix profitability, sales & profit planning, strategic pricing, and production planning. New customers typically begin reaping benefits within 60 days. Maxager is headquartered near San Francisco with offices in Europe and Asia. For more information, visit or call +1.888.MAXAGER.

©2006 Maxager Technology. All rights reserved. Maxager is a registered trademark of Maxager Technology, Inc. All other trademarks are the sole property of their respective owners.

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