In a dynamic, fast-changing market environment, it’s a tough tradeoff where to take your business next. There are so many ways that your company’s resources and products can be used to build and shore up your competitive edge, but this dictates a new understanding of what it means for a business to be successful, and how to analyze and plan your business long-term. Investment decisions are a powerful tool to gain competitive edge.



Investment decisions must be made all the time, not from time to time and not solely for the purposes of long-term planning 3, 5 or 10 years ahead, if one wants to be able to capitalize on new opportunities and promptly react to changes. A company needs to proactively update its investment plans with an eye not only on the investment project at hand, but all its investment operations.

The ultimate goal of all investment decisions and all operations is to add value to the company, defined in terms of growth in its projected discounted cash flows from different lines of business. With that in mind, it is important to see not merely how any individual investment projects add to the value of the business, but also what day-to-day operations do to increase its value.

Prime Expert is an analitic system providing an arsenal of tools for investment planning and decision-making, aimed at adding value to the business.

Prime Expert models financial operations using a process-focused description method, and analyses how and where value is created within the company.

The program will model the projected operation of en existing or emerging business and describe its business environment.

Prime Expert will model investment decisions for business startup, acquisition and business development: new market entry, new sales outlets, new product launch, new technology implementation, and so on. It will also support informed decision-making for reengineering end-to-end business processes within the company.

The main functions of the program are:

• modeling of the business and its external economic environment;
  
  
• financial projections;
  
  
• comprehensive model analysis, including multiple alternative scenarios, financial analysis, investment analysis and analysis of value chains.
  
  

External business environment

Prime Expert will factor the external economic environment into its business model.

The program supports:

Multi-currency cash flow accounting

Prime Expert supports data input and viewing of calculation results in different currencies, and will display exchange rate curves.

Price trends

Prime Expert shows change dynamics by resource cost period (inventories, fixed assets, finished products, wages, production costs and general logistics expenses).

Taxation

Prime Expert lists major taxes levied under Russian law and shows which level of government they go to. The model may be augmented to include more tax types. It will also determine the taxable base of any tax according to a formula, and show how taxes are levied and filed. For example, the model will demonstrate how excess VAT is refunded after a stated time period.

Integration of suppliers and contractors

In Prime Expert, the model of a company will incorporate contractual relations with suppliers, fiscal bodies, investors, creditors, invested businesses and consumers. The model will break contractual relations down by category or individual contractor to evaluate suppliers and assess earnings by customer. By integrating consumers into the model, Prime Expert will help identify target segments for analysis (in product/consumer combinations) with an eye on the specificity of doing business with individual consumer groups. When this is done, Prime Expert will help allocate the overheads and calculate value chains for each segment or each individual customer.