What is Magic Orange?
Magic Orange is a cloud-based solution designed to drive transparency and simplicity into your profitability and costing process.
With a focus on shared services, the powerful cost transparency software uses standard financial and IT data to identify cost optimisation opportunities by providing accurate insight into the cost of running your business.
Magic Orange is currently being leveraged by two of the world’s top 10 banks to provide high value insight into their spending, empowering them to make smarter decisions relating to shared service usage.
A scalable solution with rapid ROI, it can help your business too.
The importance of cost transparency
For most companies, understanding the true cost and profitability of different products and services is not easy. Cost allocation can be a highly complex and time-consuming process, especially when it comes to accurately allocating the cost of shared services such as IT, procurement, HR, payroll, marketing, finance, and accounting. Very few enterprises have transparency on these kinds of shared costs. And because of this, they lack complete, accurate knowledge of their company’s cost drivers.
Without complete and accurate cost allocation, it is difficult for organisations to:
- understand their true profit margins
- measure financial efficiency
- defend the costs of shared services
- make informed decisions about their business’ future
Magic Orange can provide complete and total cost transparency, driving efficiencies by ensuring shared services costs are accurately charged to business units.
Magic Orange Capabilities
Magic Orange will help your organisation make better, data-driven decisions. It will shift the conversation from cost, to value.
Powerful insights into profitability and costs
- Cutting edge dashboards and analytics provide meaningful decision support
- Empower cost centre owners and consumers through self-service analytics
- Drill down into areas of interest and investigate with powerful analysis tools
- Designed to provide relevant views and insight for executives, managers and consumers
Accurately plan resource costs for projects and services
- Efficiently forecast and track time spent on projects and services
- Increase credibility of project and service charges based on actual time spent
- Plan resource time ahead for use with budgeting cycles
- Automatically use time allocations as a basis within cost allocation models
Calculate accurate unit costs for providing goods and services
- Provide a way for consumers to understand the impact of their consumption
- Automatically account for both direct and indirect cost inputs
- Patented calculation engine is designed to scale for large volumes
- Prevent bad patterns of consumption by showing how unit rates are determined
Manage the true TCO of products and services
- Determine the true cost of delivering products and services
- Transparently show direct and indirect costs charged to each product and service
- Discover outlier product and service costs
- Identify TCO trends over time
Identify opportunities for cost saving
- Review how well or under utilised your existing assets and services are
- Determine the cost of under-utilised infrastructure assets such as servers
- Gain insight into which areas need attention
- Drive efficient cost management practices
Produce a granular, defendable bill of services
- Clearly show what and why costs are charged to cost centres
- Drive positive behaviour around cost accountability
- Empower consumers to understand how to control costs
Implement a value management framework for decision making
- Reveal true costs and consumption of services, projects, infrastructure, apps and more
- Measure TCO, enabling tackling of technical debt and other often-hidden costs
- Empowers productive conversations using a common language between IT, Finance, and Business Units
Build easy to understand models
- Build credibility through transparent self-service visual models
- Flexible modelling and allocation capabilities
- Patented pricing calculation engine designed to handle granular allocation detail
- Visually trace how revenue and costs flow through models
How does Magic Orange work?
The challenge with most cost transparency initiatives is that they are extremely complicated and time consuming to implement, and seldom arrive at a repeatable and accurate Total Cost of Ownership (TCO) of products and services. Other initiatives rely on a multitude of complex spreadsheets to calculate a TCO.
The Magic Orange algorithm eliminates the complexity and delivers an accurate and complete view of the internal pricing of shared services.
The software integrates data from existing data sources. It pulls in disparate data sets to create a repeatable, robust and accurate total cost of ownership (TCO) solution. The result is an accurate model of complex provider/consumer relationships.
The model empowers business units to make smarter decisions relating to shared services usage, ultimately increasing profitability through more efficient use of shared service resources.
Unlock cost optimisation opportunties for your business
The patented Magic Orange pricing engine will enable you to:
- identify opportunities to optimise costs
- deliver more accurate profit margins
- make more informed invest/divest decisions
- use existing assets more efficiently by tracing costs back to their drivers
- get a complete picture of the true costs and profitability of complex shared service divisions
- eliminate reliance on high maintenance manual spreadsheets and processes
- dramatically decrease turnaround time on costing questions
- spend more time analysing and less time managing data and spreadsheets
Magic Orange Dashboards and Analysis toolset allows users to benchmark their current cost environment against budgets, forecasts, historical data and any number of what-if scenarios.
The Magic Orange solution is highly scalable, which means that it is suitable for use in any size organisation. It can easily handle vast volumes of data and process vast data sets in minutes.
Rapid return on investment
With its fast and easy deployment process, Magic Orange offers quick return on investment. It is also extremely cost effective with fees based on a low percentage of savings realised.
The latest Magic Orange news
Contact us to discover how Magic Orange can help you make better, data-driven decisions by leveraging accurate insight into the cost of running your business.