Success Stories – Non-energy
Although we focus on energy, our solutions are flexible to work with almost any commodity and many industries. Additionally, our specialists have applied their skills and experience in a diversity of markets and domains.
Wherever complex analysis, understanding supply-demand dynamics, or price forecasting is required, Deloitte MarketPoint is a good fit.
Many of our customers prefer to remain anonymous. We respect this preference and have taken care to give examples of non-energy applications without providing names or geographic detail. We hope that these examples will help companies who don’t know us to better understand how our solutions can help them, and also to see the excellence of our people, so that they will give us the opportunity to discuss their needs and propose how we can help.
The success story selections listed below provide examples of projects and customer experiences with Deloitte MarketPoint and also with MarketPoint Incorporated and Altos Management Partners. The history goes back a few decades, so in some instances the use cases refer to precursor versions of MarketBuilder and its current suite of models. As MarketBuilder has evolved over time it has been designed to better enable our customers to be more self-sufficient in utilizing our technology in their decision-making processes.
Selected Success Stories
Pharmaceutical industry commercialization analysis
A consulting firm asked Altos to conduct decision tree and probabilistic analysis of drug commercialization and monetization alternatives for one of the largest pharmaceutical companies in the country. The analysis was used in important strategic planning decisions.
Models enabling largest telecom companies to make pricing decisions aimed at maximizing profitability
A number of the largest U.S. telephone companies retained Altos to analyze the revenue streams they earned on their products and to help them with strategic pricing decisions. Prior to the Altos analysis, the typical approach to pricing had been to “track” past revenues as a function of past prices for past product lines. However, the companies were seeking a better method because historical analysis didn’t work well with the market segmentation, price differentiation, self competition, and competitor response prevalent in the industry. Altos utilized a future-oriented analysis approach focusing forecasted future prices and their potential effect on product revenues and product volumes. Altos’ approach to analyzing revenue management simulated their clients competing to the maximum extent possible against their true competitors, and to the minimum extent possible against themselves. Altos’ analysis and models helped these companies quantify how revenue capture depends on their entire product line as an integrated whole helping them to systematically and opportunistically modify their product line so as to maximize profitability.
As an example, for one of the companies Altos developed a system named Product Management and Pricing for Telcos (PROMPT), which incorporated customer segmentation and tariff element detail to provide detailed projections of sales volumes and revenues under a wide variety of alternative telecommunication product line and pricing strategies. PROMPT was not only used for confidential internal product line management decisions but also in preparing materials for submission to Public Utilities Commissions (PUCs). The company provided the PUC direct access to the model and asked the Altos staff and the company’s staff to carry out model runs using the PUC assumptions.
Airline pricing software and modern yield management
Many of the top U.S. airlines hired Dr. Dale Nesbitt and the company he founded before Altos (DFI) to develop industry-leading fleet assignment and seat pricing software. Dr. Nesbitt co-invented modern yield management simultaneously with one of the airlines, developing some of the most notable insights and conclusions of the modern air transportation era (hub-and-spoke routing, use of bidding to resolve overbooking, smaller rather than larger aircraft, seat inventory management and price differentiation, and real-time response to competitor pricing and load forecasting).
As used in this document, ‘Deloitte’ means Deloitte LLP (and its subsidiaries). Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.