DAO Web Page of Fame

Celebrating Summer Successes Since 2006

  INDUCTEE:  Shankar Raja

YEAR:   2008

CATEGORY: Pivot Tables

 



During his summer internship with BCG, Shankar worked on a pre-merger integration planning assignment for clients in the healthcare technology industry. Shankar’s objective was to develop a comprehensive, market based, bottom-up revenue forecast for the combined entity, to inform post-merger strategic planning. Shankar made extensive use of Pivot Tables to segment over 200K practices in the US healthcare industry by specialty and practice size. The market potential represented by each market segment was translated to a revenue opportunity for the client using a methodical 5-step process:

- The addressable market opportunity was determined by applying penetration and adoption rates by segment

- Products in the client’s portfolio were positioned against market segments that they best served

- The number of deals to be won was calculated from the addressable market by estimating reasonable sales force coverage and win rates by product and segment

- The total order intake was estimated using an average deal size per product

- Revenue recognition rules were applied to translate order intake into an annual revenue figure

 Logic similar to what is outlined above was used to determine the revenue opportunity represented by cross-sell and up-sell deals. Shankar’s analysis is being used by the client CFO’s office to validate Wall St. expectations from the merger and develop revenue targets for individual business units. The tools and modeling skills developed in FY DA & DAO courses definitely paid off for Shankar!